The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1902-04-25
ARGUE TO
FIRE COURT
The Insurance Men
Present Their
Claims.
CFrom Thursdays dailyJ

from Thursdays daiN)
The Court Of Fire Commissioners
heard arguments yesterday upon the
liability Of the government for the
claims made by the insurance compa-
nies for losses paid by them as a re-
suit of the plague fires. The amount
claimed by these companies is about
ss000o. The claimants are the North
German Fire Insurance Co, Hamburg
Bremen Fire Insurance Co, North
British and Mercantile. New Zealand,
Transatlantic, Royal, Firemans Fund
and Liverpool, London and Globe. The
Insurance companies were represented
by Judge Silliman, A. q. NJ. Robertson
and Mr.. Holmes, while Attorney Gener-
al Dole represented the government.
MIR. Dole opened the argument. adj
dressing the court for nearly the entire
morning session. lie contended that
the Legislature did not provide for pay
ment of fire losses adjusted by the in
surance companies, that they were taxi
ing that risk and had been receiving
premiums year after year upon the pos
siblc contingency of "A fire The poll
cies contained the provision, "by order
Of the civil authorities" and the insur-
ance companies were bound by their
contract.
These insurance claimants assumed
the risk by burnings by order of the
civil authorities" They put this liabil-
ity in the contracts of insurance which
they issued. They took pay for il in
the shape of premiums. They did this,
presumably knowing that there was at
the time no remedy against anyone for
the destruction Of property under such
circumstances. Their liability to insur-
ers was business contract, to which
the government was in no sense a par
". In rembursing insurers, they have
simply lived up to their contracts with
them.
1T was argued also that the insurance
companies had no property and conse-
quently did not come within the proVi-
sloas of the act, they did not suffer any
loss by paying that which they We're
bound to pay under their contracts
with the insured.
TO admit the claims Of these COM
panics is to pay them twice at the ex-
Pense either Of the taxpayers at large,
or Cf the actual sufferers from the san
/ itary fir5s-orce in the premiums which
they have received for assuming the
risk. ana again in relieving them, at
the expense of taxpayers or others, of
the risk which they assumed as a mat
ter of business.
If these insurance claims are allowed
and the claims in the aggregate are
more than fifteen hundred thousand
dollars, the eighty thoussn nd dollars
must be deducted, pro rata, from the
from these fires. On the other hand,
If the aggregate of claims does not eX-
coed fifteen hundred thousand dollars,
including the insurance claims. then
the insurance claims, If allowed, will
be paid by the taxpayers of the Terri
tory. 1t is submitted, in either case,
such pay ment will be contrary to the
letter and to the spirit of the act; and
Will be, in effect a gift to corporations
that have already, in the shape OF pre-
mtums. received payment Tor all their
I losses. q
Mr.. Holmes replied briefly, arguing
that the Legislature intended to pay all
sufferers from the fire, and thai the
insurance companies had been damag-
ed by the conhagration as much as any
person. Only few companies had the
provision protecting policy holders
from loss by fire staIted by civil au-
thorities, and justice demanded that
the government protect these compa-
nies. He contended further that the
companies could have made secret
agreement with the policy holders,
promising reimbursement in case the
government did not act, and in that
event the Territory would have been
compelled to pay the claims. By pay
ing these losses the claims were assign
ed TO the insurance companies and they
"Crc eIl!tled to reimbursement He
,H,ted a'So the constitutional provision
that private property may not be TAX
en- without just compensation" and
said that the Legislature evidently in
tended that the insurance companies
should be included in the adjustment
Mr.. Robertson stated that 1t made nc
difference who owned the buildings that
rich and poor must be treated alike and
. that II the insurance companies prov
I'd their claims they were entitled &c
the award. The government, he said
admitted its liability when it passed
, the act appropriating a million and q
half dollars for the payment Of claims
Judge Silliman also spoke briefly anC
, Mr.. Dole concluded the arguments. The
court took the matter under advise
, ment, and will not render q decision
for some time.
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The court makes the same ruling II
the case Of c. c. Kennedy VS.. +. NJ
Wakefield also an appeal from Hilo
in which exactly the same principle.