New-York tribune., 1906-11-21
SAN FRANCISCO LOSSES.
GOVERNMENT INQUIRY.
To ascertain Why Insurance Com
panies Hare Not Al Paid Up.
rFrom The Tribune Bureau.


Washington Nov 2O-The United States gov
ernment will take hand in clearing up the fire
insurance troubles In San Francisco. with the
hope OF effeoting just settlement of claims for
losses suffered in the earthquake and fire of last
April.
The method to be employed will be investi-
CATION by the Bureau of Corporations of the ac-
ton of the fire insurance companies involved
Announcement of the governments plan was
made at the Department of Commerce and La
Dor to-day in the following statement:
The Secretary of Commerce and Labor has di-
rected the Commissioner of Corporations to make
a investigation of the action Of the fire insur-
ance companies in the settlement of claims for
losses resulting from the earthquake and fire in
san Francisco and other places in California
George F. Butler. of Ross, Cal, has been ap-
pointed special agent to conduct this investiga-
tion in California Mr. Butler has had an ex-
perience of thrty-eight years in the fire insur-
ance business on the Pacific Coast. having re-
tired about year prior TO the earthquake.
The decision to undertake investigation Of
the fire insurance question in California is the
result of representations made TO Secretary
Metcalf by citizens of San Francisco.
1t has been submitted that insurance corpora
tons have been grossly negligent in the payment
OF losses in the San Francisco disaster, and that
property owners have been unable to get their
insurance because of the allegation that the
damage was due TO the earthquake or fire caused
by the earthquake. Altogether about one hun
dred insurance companies involved in the
California losses. and 1t is maintained only a
few arranged for immediate settlement an
equitable basis. large number made a prop
osition to pay on a basis of % cents on a dollar.
While others refused to pay any basis claim
ing that the damage wrought by IAN act of
God The greatest complaint has been against
the German insurance companies, and an in
VeSttgation of these Conc3nS especially will be
made. 1t is claimed thaf there Is still over a
hundred million dollars of insurance unpaid,
that the total Insurance on property lost was
about 1924 100000 and that only about $125,-
100000 has been allowed
The action of the Secretary of Commerce and
Labor in ordering an investigation of the in
surance companies is pursuant to the organic
act of the department. which reads as follows:
It shall also be the province and duty of said
bureau corporations under the direction of the
Secretary of the Department of Commerce and
Labor. TO gather. compile and publish and sup
ply useful information concerning corporations
doing business within the limits of the United
States as shall engage in interstate commerce
and in commerce between the United States and
any foreign country including corporations en-
gagged in insurance etc
In the discussion Of a law for regulating in
surance in Congress the authority conferred by
this section was generally overlooked but It will
now be invoked. and the results will be of great
interest. The purpose is. apparently. to pro-
mote an adjustment of the California insurance
troubles through the persuasive agency VI
publicity.
It is regarded possible that insurance COM
panies which have thus far neglected to pay
their losses may shrink from the exposure OF
the facts which It is possible for the govern
ment to make without instituting any legal
prosecution.
OF special interest is the question raised re-
garding the foreign insurance companies doing
business in this country and involved in the
San Francisco complication. committee OF
California citizens recently came to Washington
TO confer with officials OF the State Department
relative to the attitude Of the German insur-
ance companies against which there are claims.
sibility of this government making representa-
tons to Germany the subject Since then
the committee, consisting of William Thomas,
Edgar Sutro and F. W. Dorhrmann. has sailed
for Germany to submit the claims to the Off
Gals of the German companies. The representa-
tions made by this committee were among those
considered by Secretary Metcalf and the out
come Of the Investigations will be awaited with
great interest, both IN this country and abroad.