The morning call., 1893-12-21
Many Policies Cancelled Out of
Sympathy.
ALL OVER BUYER s REICH.
Developments of Prolonged Dispute
Regarding Losses by the Bush
Street Fire.

IS result of delay in settling claims o.
Buyer & Reich against insurance compa
MES startling plan of action has beer
originated by many wholesale merchant IS
The insurance people are alarmed over u
and declare that relentless war will foi
low if a change does not come.
1.-The whole town is aroused" was the
meaningful way an interested attorney
commented on the situation yesterday
but it will be aroused a good deal more II
this thing continues much longer"
That an organized effort is being made
against the insurance companies which re-
fused to pay losses TO Buyer Il Reich, the
Bush-street merchants who were burned
out some months ago, seems certain. After
the committee appointed TO investigate the
losses reported to the insurance union that
in their estimation SS0,000 would fully
cover all losses, it was then and there re-
solved not to pay the claim of $4,000 pre-
sented by the firm. Two comprehensive
Prussian National and the Guardian and
Sun Fire-drew out of the compact and
paid up. Others declined TO give one dol
lar. Reason for this stand was stated 10
be information received TO the effect that
Buyer d Reich's statements were not cor
rect and their books were not true An
other which is now being carried on bv w.
II. LowdeD, local secretary of the North
British and Mercantile Insurance Com
pany.
Merchants discussed this question, won
derlng why insurance men refused 10 set
tie, and at last what appears to be united
stand against the following concerns " hich
would not pay Buyer & Reich's losses was
made:
American Fire Insurance Company Of
Philadelphia, $1,000; Alliance Assurance
Company of London, $4,000; British Amer
lea Assurance Company of Toronto,
$4,000; Connecticut Fire Insurance Com
suranee Company. 5000; Hanover Insur-
ance Company of New York, S4400
Hanover Insurance Company Of New
York. $500; Home and Phoenix Insur-
ance companies, $1,000; Hamburg Bremen
fire Insurance Company, 5000; Imperial
Insurance Company of London. England,
$1,000; London and Lancashire Fire Insur-
aDce COMPANY Of Liverpool. $1,000
London and Lancashire Fire Insurance
Company of Liverpool. England, 5000
Lancashire Insurance Company of Man
chester. England, $1,000; National AS
surance Company of Ireland, $1,000; Ma
tional Assurance Company of Ireland,
S2oO0; Northern Assurance Company of
England, 5000; North German Fire In
surance Company of Hamburg, $4,000 /;
Norwich Union Fire Insurance Society of
Norwich. England. $1,000; Orient Insurance
Company of Hartford. $1,000; Patriotic As
surance Company of Dublin, ireland, $4,000 !;
Phenlx OF Brooklyn. S2500; Queen Insur-
ance Company of New York, $4,000; Royal
Insurance Company of Liverpool England,
$500; Royal Insurance Company of Liver
pool, England, $1,000; Pennsylvania Insur.
ance Company of Philadelphia, $1,000; Scot
tish Union and National Insurance Com
pany OF Great Britain. 5000 Scottish Union
and National Insurance Company of
Great Britain, $1,000; transatlantic Fire
Insurance Company Of Hamburg, 5000 /;
Svea Fire Insurance Company of GotheI-
burg. $500; Union Assurance Society of
London. $1,000; total unpaid, S137.6OO.
Merchants began on Tuesday TO cancel
policies in these companies. Attorney
Kelnstein says IT is only beginning.
Kahn Bros. & Co., Daniel Meyer (the
panker), Loweuberg & Co., Brown Bros.
q Co., l.. Dinkelsplel & Sons. and Louis
Kline have Cancelled their policies with the
stubborn companies. and several down.
town firms expressed an intention OF fol-
lowing their example.
They are retaliating in q new and
alarming fashion by thus expressip 2
sympathy for the position of Buyer d
Reich. Many millions of policies are
likely to change hands in the next few
weeks on this account, as the insurance
compact maintains its attitude regarding
payment of losses in the Bush-street fire
In addition TO all this some merchants
insist that clause shall be inserted in
their policies stating that losses shall be
adjusted separately by each Insurance
company. and not under the present sys-
tenn by which one adjuster or a committee
selected by the union makes an adjust
menr Tor all companies. Naturally this
demand has created intense feeling among
Ia h.
ment OF more adjusters. and, consequently,
additional expense. Coupled with the
cancellation of policies, il has set the in.
Surance men thinking over problems as to
how fire must be fought with fire. The
fight is coming surely, and then there will
be an interesting battle between the
millionaire corporations on one side and a
powerful union of wealthy merchants on
the other.
II understand" said Attorney Thomas
Z. Van Ness. who represents the insurance
companies directly concerned, that mer-
chants are canceling policies. But this
cannot go on long. for as soon as it is
known In head offices a combine will be
made against II for self-Dreservation. If
nothing more. We have acted In good
faith. and this is not fair to us. The com
panies Will understand If it happens with
one 1t IS likely 10 happen with another at
any time. Suppose company not affected
IN the present case refused to pay a loss.
there is no guarantee that it will not be-
treated In the same manner. That is quite
reasonable to assume, and the companies
know IT, The result VIII be this: The
insurance companies will com bne and re-
fuse to take policies from merchants VINO