The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-04-20
DO EARTHQUAKES
STOP INSURANCE?
This Question is Being AskctD'By
Many Thousands Of
Sufferers.
Mr.. ROBT. LECKY SAYS mo"
Secretary ofNirgi,'ia Statec: a] INSTR
uncc Company Tells Reasons
.,53 Why.

ID = / ID
question wlici Is bcinE asked BY
tl,,,isnnds, IS whether OrRnot tho fire In.
st,nrce companies carrying insurance on
III, ruined property IN San francisco are
liul,le ro, tic burnt buildings which were
Y demolished first BY tho earthquake ana
afterwards destroyed by fire.
trlc question seems TO be whether or
no, NJ, earthquakes vitintcs fire Insurance
policy
ar! Robert l,ecky. jr. secretary or
Tie Virginia state Insurance Company,
said last night that he had given the
matter considerable study una had como
to tie conclusion thatn buildings stand.
Ing after the first shock of the earth
Quake ana which we're destroyed after
wards by fire even II they fell from
Il second shock. would lie protected by the
9 insurance companies.
Mr.. I.ccky said: ~ think that the build
ings that did not fall are certainly insured
against fire and possibly those that fell
at tho second shock after inc confla-
grafton had been occasioncd by the first
shock.
When Not Liable.
'All policies, however. have q clause
stating that the fire insurance com Z
puncs are not liable for buildings
thu. fnll and are then burnt.
All the principal eastern fire In
fnrancc companies IN the United States
do business in San Francisco, but no
Virginia company has agencies In Call
f0rna
There are two large local fire insurance
companies In San Franclsco-,rhe Fire
mans Fund with assets OF seven mill
lions. and the Home, with assets OF
x two millions
The fire insurance companies paid out
sl,.oNo0O for the Baltimore fire and It
seems MS though the San Francisco con-
81 flagra,ion would cause even a greater
loss.
.rhe q',ery rs to whether IA the cor nre IN
s en hn h foPsr esfaSsa
to-day will be collectablc or not" con-
tInuel Mr, Iscky. rs one tl,at taxes ,s
rank nextGto that Of aid to the llHin. ana
Il he care OF tho dead.
Every fire insurance policy Issued III
this country provides that 1t IS void. both
as 10 the, building and its contents should
nj san Francisco have such a provision.
When They Are Protected.
MY opinion IS tina. buildings which
& did not fall o. cease to be OF cash value
II exclusive OF ground as II result. OF the
even though they were damaged by the
second shock and then destroyed by IRE.
! also believe that the buildings anu CON CON
Z
shock, itfWhich did not burst into flames
from within Themselves. are also within
5tthc protection Of their policies. n otmel
words, II their damage was not the cause
Of the Are that consumed the property.
then thc3- should recover
"1'hc preceding opinions are 50 fixed IN
my mind, that | venture TO place the
&c,nsscs treated in the absolutely collcct-
able list.
As 10 the properties not embraced ~. IN
by tic earthquake and the contents OF
such buildings. there Is some doubt; 4,
'The@contcn,s Of these buildings should
sof property less tho damage done by. ne
+ fall 1of the building, and provided the
ruin wus completed By fire. ,,...
buildings Is one that has caused rnuch
litigation. bu, only in cases or poorly
constructed, and IN many cases, Dn,,u-
safe and therefore OF coll,pata.H'e'y ~ ~
tic value
Found No Similar Cases.
There are no cases, which ro;ild IND
in an hours search, thai iild any conles-
lion With the fai OF bga,ng rs Wiheh IN
s,ri,ncc stands. ] G. To collcct rom ~, ~
many for the purpose or phyihs !, 70 -, ne
few leads to the prrut,dhi s'i r ~u." San
francisco will be that he fire N sataa lsl
y companies nrc paying claims IN cash J., ~
all property e n% Ihc IN irsi shocf and it
Would be in entire accord with their treat.
ment of their polcy-holders In .tnS past
+ "a waive all rights under their folIcies
With regard to buildings burned. even e..
3 though they had frs, been atta&kcu DS
the earthquake. ,,,.,
."rhe fire Insurance policies. OF COURSE,
1n mt cover where there has Deen GAM
age by the earthquake only.
FL Will add that the companies are ~
nc GOOD shape to care for this Eredi cni1-
4 flagrution as they were at Baltimore,
therefore the loss TO california WIZ ny
hn increased by the INABILITY Of the lnsur-
ancn companies TO meet :hcr claims,
FOREIGN CONCERNS