The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-02-19
CAPITALISTS ORGANIZE,
Many Prominent Men Meet to
Form a New Insurance
Company.
Henry ]. and Charles II. Croker
Appointed on the Committee on
Organization.

The Chamber of Commerce was we'll
filled yesterday when several men pronli-
nent in mercantile and manufacturing
circles, and also capitalists, met to esfab-
lish a new insurance corporation, to be
known as the California Underwriters
The object of this new organization, it
was stated, was to transacta fire insurance
business under the form known as Lloyds,
or as individual underwriters.
Thomas ]. Parsons, president of the
Del Monte Milling Company, was called to
the chair, and ]. D. Maxwell, City agent
OF leading fire insurance companies, was
asked to act as secretary.
The following prospectus was read by
the secretary, setting forth the aims and
purposes oil the new corporation:
II is proposed to maintain in the City of San
Francisco an office known as California under
writers.
The name shall be the California Under
writer's of San Francisco, Cal, and the numbe r
OF members constituting such underwriters
shall not exceed 100.
The said California Underwriters is organ
lied for the conduct OF fire insurance business,
under the form known as "IlOy ds," where in
dividuals may severally become Underwriters
under policies OF insurance, and where the
liability OF members shall be several and not
joint, as though each underwater had issued
d separate and individual policy. Other classes
OF insurance permitted by law may be under
taken at any time should the same become
advisable.
A manager shall be appointed by power of
attorney OF the underwriters, who shall act
under control and authority of the Board OF
Governors, issue policies and conduct an in
surance business in the name of the under
writers. The compensation of the said man
ager shall be by commission only, which COM
mission shall not exceed that which is usually
paid by stock insurance companies to their
general agents, and the said manager shall pay
all expenses for the conduct of such business
except losses legal expenses, advertising and
stationery, meaning that the California under
writers will not undertake to pay rents or
salaries.
The manager will be authorized to under
write for each member as follows: On one risk
not to exceed two hundred and fifty $3.50
dollars on one risk bounded by four streets
not to exceed one thousand $1,000 dollars,
and on all such policies issued the liability Of
each or any underwater thereon shall in no
event exceed the sum OF two thousand $4,000
dollars.
The governors shall have access TO all books,
records and properly of the underwriters.
All investments of money belonging to the
underwriters in real property or in securities
shall be made by the finance committee or the
governors. who shall at all times have and re-
tain the custody OF such securities or proper
ties.
Membership in the California Underwriters
may be assigned subject 10 the approval OF the
governors.
The cash subscription of each underwater
shall be $500. The additional liability
The total liability OF each underwater shall in
no event exceed $4,000. Such liability shall
be limited and stated on each policy issued.
The amount created by the cash deposits shall
be the reinsurance reserve fund required by
law. Losses and expenses shall be paid from
the premium income. The remainder of such
premium income, together with the income of
the cash deposits invested, may be divided
among the underwriters annually.
A committee, consisting of Henry J.
Croker, Samuel G. Buckbee of Shainwald,
Buckoee & Co., Thomas J. Parsons OF the
Del Monte Milling Company, Charles III.
Croker and ]. d. Maxwell, was appointed
to prepare the form of organization.