The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-06-18
GRAIN men " Ant
QUICKER ACTION
DELAYED SUPPLEMENTS MEN
ACE CREDIT SYSTEM.
Minneapolis Firms Have Been Lending
Millions on Policies Covering Stored
Grain - They Feel that Some
Recent Cases Have Worked Hard
ship to Innocent Policy Holders.
Refusal on the part Of four fire

Refusal on the part Of four fire in
surance companies to pay losses, in
Cured by the destruction of the plant
Co, at Denbigh, N. D., on Dec.
-, last, has brought to the front a
question Of great Importance to the
grain trade. The right Of an innocent
holder of a policy assigned to him by
the original insurer, to collect, against
the right Of an insurance company to
protest payment upon suspicion of an
unjust claim, and the possible effect
upon credits in the northwest of any
thing tending to cast the shadow Of
doubt upon the ability of a, lender to
realize readily upon an assigned
policy, are considerations embraced in
the main question.
Vast sums are loaned in the north
west upon grain in store, and it is
probably not exaggeration to place the
total loans outstanding from Mime
apolis and Duluth, during the height
Of the grain movement at close to
$10,000,O00, a great part Of 1t secured
by assignment Of insurance covering
the grain on which the money is ad-
vanced.
Some Cases of Delay.
Two years ago this question arose !:
An elevator at Wentworth, S. D., was
destroyed. It was found that the
owner had borrowed about $4,000
from the McCaull-Webster company
Of Minneapolis, and as security had
made over and surrendered the poll
cies to that firm. John L. McCaull for
his firm and Otto Greeley for the in
surance companies, adjusted the loss.
The companies, having sixty days in
which to settle, offered an imme diate
settlement subject to discount at the
NO ia nf roy Ant no q h11f
McCaull-We Webster company, not being
in need of money, was content to
await expira ton of the legal time
limit. During this sixty-day period
some evidence came to light tending to
show that previous to the fire, or
been shipped from the Wentworth
house, and on this ground payment
was delayed. Suit was brought, the
case tried here before Judge Pond.
The grain firm won. About a year ago
the John Miller company, had a loan
out on a house at Atwater, MINI. In
this instance assignment of policy was
made after the fire. On contention
much the same as in the foregoing
case, payment was delayed. The loss
claimed amounted to about $4,000
The companies offered $4,000. Suit
was brought. Just prior to the date
set for trial at Willmar, Mimi, the in
Surance cO1lpdHleS colHpioAulSeu a.
about $4,000, the John Miller company
having waited almost six months for
it's money.
More recently a loss incurred by
Williams Brothers at Webster, S. D.
was the subject of some dispute, but is
understood to have been settled salts
factorily.
The Edwards-Wood Case.
Tn the case now commanding at
tention in the grain trade, the Farm
ers Independent Elevator company OF
Denbigh made assignme nt of policies
to the grain firm of Edwards, Wood &
Co. Of Minneapolis, st. Paul and Du.
luth. The companies involved are the
Hartford Insurance company OF
North America, and Liverpool and
London and Globe Insurance Co
After the fire of Dec. IL, 1908, proof:
! of loss were forwarded, but Edwards
| Wood Co. have not yet received set
| North Dakota and the case will come
up for a trial next fall, probably a
Grand Forks. The outcome will b.
awaited with much interest.
A Menace to Credit.
Grain men contend that any ten
dency on the part of the INSURANCE
companies to make the collection
| losses on grain and elevator risks SLOW
and difficult will prove exceedingl.
detrimental to the trade. They de
clare that the companies seem incline'
| frequently to delay payment Tor tn
full sixty days and then to interpos
further obstacles to collection: It
/ not, Of course, contended that tn
companies should settle promptly
when there is suspicion of fraud, evel
| tho the assignee of the policy Is al
/ innocent sufferer by the delay. o.
the other hand the companies declar
/ that to settle without question il
4 every case, whether assured that tn
loss is an honest one or not. woul
/ be a very poor business policy, evel
fers.
I In the Denbigh case, M. H. Boutelle
i as attorney for the companies, de
| clares that after thoro investigated
/ they have decided to withstand suit
He declines to give away his case b
revealing the evidence at this time
i On the other hand, the Edwards-Woo
j ferer by the delay. declares that
member of the firm investigated tn
elevator in question only two week
i before the fire and found its store 9
grain intanct. The fact that the salvag
was small is explained by the fact tina
i the ire burned Tor Two weeks Win
1 North Dakota gale blowing all tn
time, and that this caused the graf
to be almost entirely consumed. TIL
j grain firm complains that the insu1
I ance people took the full sixty day
before giving an answer to the clair
and then thirty more on plea G
further Investigation. This delay wa
sufficient to throw the trial of tn
case over till next fall and keep tn
4 firm out Of its money for a full yea
The facts will develop in the tris
!, and the dispute is of interest no
{ chiefly for the light it throws on sent
: ment in the grain trade as to insu1
ance methods. If money loaned Q
grain is to be tied uD for a year &
s a time in this way, grain men say tn
Il effect on credit will be extensive an
unfavorable. What they want
:. quick action and settlement eithe
$ in or out Of court without delay. Th
Y insurance men say they must go slo
in suspicious cases and that they al
!, as anxious for business as anyone an
6 will do nothing to affect it unfavol
= ably that is not necessary.
Q NEW YORK BANK STATEMENT.
= erages of the clearing house banks Of this eli
= for the week shows: Loans, 81, 049. $3.50, $780,
q crease S7,596,500: deposits. $1122, OH, 500,
crease $12, 7S1, 300: circulation $3S, T5S, COG,
. crease 1864. 500: legal tenders. $50. O0S 700, 4
crease 81 7T9 600: specie. $236, 366. 300, increa