The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-02-27
AN INSURANCE DEAL.
The Fireman's Fund and Home
Mutual Consolidate.
A Big Premium Offered for the Stock of the
Latter Company-An Official Statement
Furnished for Publication.

Insurance and financial circles were con-
sideTably agitated yesterday over the rumOr
that the Home Mutual Insurance Company
one Of the leading houses on the Coast in
their line of business-was about to retire
from the field in favor of a rival concern.
During the afternoon the report met with a
positive contradiction at the main office.
but the denial. instead of putting quetus
upon it, only served to bring out more fully
than before the causes which sent it upon
Its rounds.
Through the mornings mail every stock
holder Of the Home Mutual came in possess
sion Of a confidential circular informi ne
him that arrangements had been made with
company of undoubted financial strength
whereby $500 per share would be paid for a
majority or more of the capital stock, pro-
Ylued 1t were deposited Immediately in the
Bank OF California.
MANNER OF PAYMENT.
The payment was to be made IN the fol-
loving manner: 90 per cent on the 10th of
Mafch and the balance IN three equal III
slallmentS at two, four and six months
thereafter, TeSeTying TO the purchaser the
right to pay up in full at any time before
the expiration Of the six months, and to
make rebate at the rate Of per cent per
annum for so doing. 1t also stipulated for
-
Tor handling the business, and closed with 9
warning that only 1000 shares would be pro-
Vlded for at this figure.
In the brokers' Offices the whole thing
was looked upon as deal in which unwary
outsiders were to be made the Victims and
the records were pulled down to show that
tne STOCK has only been quoted for a long
time past at 81 80 bid and 81 60 to 81 % asked.
IL was thought strange step for syndi-
cate TO otttr $50 TO $40 a share more than
It's actual market value. and the argument
was Immediately advanced that the stock
must be worth S225 or $3.50, else they would
not pa so high. In consequence OF this
feeling, which was shared in by quite a
number OF small holders, there were many
determinations expressed to keep out Of the
pool, notwithstanding the implied threat in
the circular.
AN OFFICIAL STATEMENT.
visit to all Of the insurance Offices dur
ing the afteTn, on proved Of no avail in To-
eating the company which intended to
swallow the Home Mutual, each office hav-
Ing theory Of its own as to the purchaser.
On second call, however, Mr. Story Of
the Home Mutual handed the reporter the
following typewriter statement =
Relations have been established between the
Home Mutual Insurance COMPANY and The Fire
mans Fund Insurance Company which Will
enable the former 10 DO business In States In
when IL has no agencies upon advantageous
tSiAIo3 lullLCIlublc5 ny WHICH us lOlCleH pres
ent and future, upon the Pacific Coast will have
behind them the additional responsibility OF the
tlieman's Fund Insurance Company.
Mr.. Story, in addition stated that the
company would 90 right on with its bust
ness as heretofore, that the corporation
had no interest whatever in the transac-
tons Of its stockholders and whether they
disposed Of their stock or not he would con-
tlnue to occupy MS chair as manager.
STREET GOSSIP.
On the street, as soon as Mr.. Story's an
nOunCement was made known, the insur-
ance men were Of the unanimous opinion
that that settled It. You will see," said
they, that 1t will be the story of the ALI
ance and Union over again. 1t takes at
least year TO wind up the business Of
large company like that. and Of course Mr..
Story will remain with the concern TIL that
is accomplished"
1t is believed that the amalgama.ion is
made for the purpose Of making a combined
fight against the entertainments Of the Eu-
gliSh companies. These latter, owing to
their immense capital, have been Swimming
the cream Of the business and paving diyi-
dends Of 20 to 80 per cent, while the home
companies find it hard to pay or 10.