Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-02-22
THE SHARES ASSESSED
POTOMAC INSURANCE COMPANY
ARRANGING TO PAY LOSSES.
Regarded as Feasible Plan to Enable
Company to Continue Business
The Baltimore Fire.

AS nOie0 IN lie quar- VI odtufddy. tHC
Potomac Insurance Company directors held
a meeting Saturday afternoon for the pur-
pose of determining upon ways and means
for settling up the losses incurred by the
Baltimore fire and continuing business as
heretofore
The outcome of the meeting was de-
cision the part of the directors that 1T
would be necessary for each of the stock
holders to pay an assessment OF $3.50 per
share in order to pay the loss and have
sufficient reserve fund to put the company
on a business basis once again. The stock
of the Potomac company is worcestershire.
and it is. therefore, rot obligatory upon the
holders to meet this assessment but il is
believed by the directors that this is the
only feasible plan. in fact, in the notice TO
the stockholders it was the only one sug-
gested as meeting the requirements of the
situation.
The loss by the Potomac company in the
Baltimore fire has totaled up to much
larger sum than was at first estimated. aud
is expected to be far in excess of the net
surplus of the company: as a matter of
fact it is believed the payments will
croach on the capital of the company to
quite a large extent and that unless the
assessment of $3.50 is met by. the stock
holders in full it will be necessary for the
company to retire from business. IT, on
the other hand, the amount needed is raised.
Il "ii iticSt any impairment Ol the cdpatdt
stock. and with the present reserve fund
used for paying the losses will leave re-
serve fund of forty to fifty thousand dol
lars for continuing the business on sound
basis as before the fire.
The Result Not Known.
Owing to the late hour at which the notice
of assessment was sent out Saturday after
noon and the fact that today is legal hol-
day, but little or no business being con-
Quoted, it is practically impossible to learn
just what the effect of this assessment will
be and what response 1t will meet with
The directors of the company own 1900
shares OF the stock and control, 1t Is said
al out 1000 shares additional. which makes
about one-half the capital stock. The bal
ance OF the>Stock is scattered among 200
holders.
Ii is believed by the directors that should
the assessment plan not bring the neces.
sary results the company can be sold in
tact to another company in the District.
In fact, an offer of $50 per share for thu
entire capital stock, or such part of it as
would give control it is said was made
at the meeting Saturday afternoon The
stockholders and others in the local fnan-
cial world are anxiousy awaiting the out
come of the call.
The Potomac Insurance Company is one
or the oldest in the District of Columbia
and is said to have done much the largest
business The company has been paying
an annual dividend of II per cent or S24 900
semi-annusl dividend of ST. 900 was paid
to stockholders in January. The stock OF
the company had been selling around CD
or well above 200 per cent par. Just the
day before the fire in Baltimore the stock
was quoted on the local exchange as 90
asked. 81 bid. The bid on Saturday was
- and a fraction, and % and a fraction
was asked
Circular Letter Issued
The Superintendent of insurance. Mr..
Thomas E. Drake. has sent the following
circular letter to all companies that are
licensed to do fire insurance business in
the District of Columbia:
Gentlemen: Please execute under oath,
and return Immediately. statement appear
ing below respecting the gross and net
amount of loss sustained by your company
in the Baltimore conf1a grafton that COM
n,enced on the 9Th instant.
our company is licensed by this de-
partment to May /. 1904. 1t is important
however. that a statement of the net losses
sustained in the calamity referred to should
be placed on file here. with your annual
statement of December 81. 1903 at the
earliest date possible. in order that proper
action may be taken in the matter of cali
ing for supplemental annual statement
OF your company on before April 30,
1904, or in the meantime forbidding the
issuance of policies in the District of Co
lumbia, should either of such steps be con-
Sioered necessa ry'
The questions to be answered by all COM
pGnies are the following:
Number of policies involved in the Balti-
more fire?
Aggregate amount of policies?
Aggregate amount of reinsurance under
these policies?
Leaving net amount involved?
Estimated amount to be collected from
reinsurance companies?
Estimated net loss of company?