The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-04-24
ARGUE TO
FIRE COURT.
The Insurance Men
Present Their
Claims.
SAY GOVERNMENT
IS RESPONSIBLE
Attorney General Dole Argues
That Insurance Co.'S We're
Paid in Premiums.

The Court of Fire Commissioners
heard arguments yesterday upon the
liability of the government for the
claims made by the insurance compa-
MES for losses paid by them as re-
suit Of the plague fires. The amount
claimed by these companies is ABOUT
$50, 600 The claimants are the North
German Fire Insurance Co., Hamburg
Bremen Fire Insurance Co., North
British and Mercantile, New Zealand.
Transatlantic. Royal, Fireman's Fund
and Liverpool. London and Globe. The
insurance companies were represented
by Judge Silliman, A. G. NJ Robertson
and Mr.. Holmes, while Attorney Geher-
al Dole represented the government
Mr.. Dole opened the argument, ad-
dressing the court for nearly the entire
morning session. He contended that
the legislature did not provide for pay
ment of fire losses adjusted by the IN
surance companies. that they were TAX
ing that risk, and had been receiving
premiums year after year upon the pos
sible contingency of 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 or the
civil authorities" They put this liabil-
lily III the COHlTdClS VI dilOC
they issued. They took pay for it 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 a business contract. to which |
the government was in no sense par |
ty. In reimbursing insurers, they have !
simply lived up to their contracts with !
them.
II was argued also that the insurance |
companies had no property and conse- |
quently did not come within the provi- |
sions 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
panies is to pay them twice at the ex-
penSe either CT the taxpayers at large, |
or Of the actual sufferers from the SAN
itary firss-orce in the premiums which
they have received for assuming the
risk. and again in relieving them, at
the risk which they assumed as mat
ter of business.
II these insurance claims are allowed
and the claims in the aggregate are
more than fifteen hundred thousand
collars, the eighty thousand dollars
must be deducted, pro rata, from the
to be paid the actual sufferers |
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 payment will be contrary to the
letter and to the spirit of the act; and
VIII be, IN effect, a gift to corporations |
that have already, in the shape of pre-
miums. received payment for all their
losses.
Mr.. Holmes replied briefly. arguing
that the legislature intended to pay all |
sufferers from the fire. and that the
insurance companies had been damag-
ed by the conflagration as much as any
person. Only a few companies had the
provision protecting policy holders
from loss by fire started by civil au-
thorities, and justice demanded that
the government protect these compa-
MES. 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 hive been
compelled to pay the claims. By pay
ing these losses the claims were assign
ed TO the insurance companies and they |
Were entitled to reimbursement He |
quoted also 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 it made no
difference who owned the buildings that |
rich and poor must be treated alike and
that If the insurance companies prov
ed their claims they were entitled to |
the award. The government, he said,
its liability when it passed
the act appropriating a million and
half dollars for the payment of claims.
Judge Silliman also spoke briefly and
Mr. Dole concluded the arguments. The
court took the matter under advise
ment, and will not render a decision
for some time.