The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-11-29
LOSS TO BE PAID.
BUYER s Reich Offered a
Compromise.
Attorney Van Ness Advises the In
surance Companies to Allow
Third of the Claim.

In the negotiations which have been
pending between Buyer & Reich and
the insurance companies carrying policies
on the stock burned in the Bush-street fire
some time ago the insured seem to have
been having quite the better of the argu-
ment. The firm is now assured OF re-
ceiving at least part of the loss claim. and
it seems probable that the M after will be
settled out of court.
Through the advice of T. c. Van Ness,
attorney for the companies, it was con-
sidered unwise to allow the claim to be
lltigated. The chances of successfully
withstanding the demands of Buyer d
Reich were not so apparent that the
counsel for the companies desired to make
a legal defense. The only allegation of
fraud which has yet been made against
the insured was in reference to the
amount Of the loss claim.
Almost every insurance company on the
street carried a line on the burned and
damaged stock. The amount of the in
surance aggregated $4,000. Buyer d
Reich fled claim for $4,000. The COM
panies maintained that this was more than
double the amount TO which the firm is
entitled. After making a legal demand
for the sum the assured waited sixty days
for final answer.
A clause in the policies requires in
every case of loss that the assured shall
give the companies sixty days credit for
its payment. This constitutes an agree
ment on tbs part of the poicy-hulder no
TO commence suit until that period as
elapsed. By the refusal of the companies
to acknowledge the business of the clair
this sixty-day prOvisO, il is coutended,
was vitiated. HON ever. the attorneys for
Buyer q Reich said that the case would be
safer in court if legal action was delayed
II tii tho tim of no arahif nariDd
1t was sixty days yesterday from the
preparation of the claim, which was
sworn 10 a day later and filed on the next
succeeding day. BY tomorrow. there
fore, the time of grace will have undOubt-
eddy passed. In the meantime negotia-
tions between the parties have been con-
tinuOusly carried on, neither side showing
any marked desire to yield.
About five DAYS ago, however. Attorney
Van Ness for the companies addressed a
letter to Buyer & Reich stating that any
proposal in the nature OF a compromise
coming from The claimants would be con-
sidered. As things were apparently COM
ing their way, however. the assured did
not jump at this suggestion with the avid
ity which Mr.. Van Ness expected.
Mr.. Reich stated yesterday that although
his firm might have compromised the mat
ter then and there be saw no occasion for
haste. He spoke very defiantly regarding
the companies and their attitude, stating
that there is plenty of time to commence
suit, and as long as the negotiations are
developing good results it might be advis-
able to prolOng them. If their demands
are not acceded TO, however. legal proceed
ings will certainly be resorted TO, and Mr..
Reich says he defies the companies to
prove fraud of any sort against his house
representative of the companies stated
that compromise would doubtless be Ell
ferted. He considered the claim of S11O,-
600 more than twice too large. but said tn at
the insurance men would be willing to
adjust the loss for $4,000.