The San Francisco call., 1906-07-03
TURN in THE INSURANCE SITUATION MAY result
FROM Meeting OF Committee OF FIFTEEN TODAY
1t Is Thought That a Split and
Disruption Of AdIuStGfS
Bureau May Follow.
Determination Of Honest Com.
pdnieS Upon Separate Action
BOthePS "SiX-BitterS."

The most interesting meeting of the
committee Of fifteen of the board OF
underwriters will take place today al
the ferry building in this city. There
have been many meetings without much
visible result, except in the appointment
Of loss committees, which have not ac-
complished anything final in large
majority of cases submitted to them
for consideration. Now the time is said
70 have arrived for a definite showdown
and final determination regarding a
course of action. A split is possible,
prominent insurance men say.
At the meeting of the underwriters
belonging to the dollar for dollar
companies that was held in Oakland
az Reed Hall last week the step was
taken thats must force speedy adoption
of policy and action, and the climax is
likely TO be reached today. A commit
tee of five was appointed by the dollar
for dollar" companies, with instructions
TO proceed with the adjustment of losses
for the companies represented by the
thirty-five full payment corporations.
In this the prerogatives of the adjust
ers Of the committee of fifteen were to
a degree set aside and ignored.
THE last move at Reed Hail. said
one of the dollar for dollar" men yes
terday, means that whether the work
Of the loss committees appointed by the
committee Of fifteen is followed by
prompt payments or not the dollar for
dollar companies will go ahead without
any more waiting or uncertainty. VIII
this disrupt the adjusters' bureau? No
one knows"
The trend of affairs at the adjusters'
bureau has recently been uncertain. At
the first sign of restlessness on the
part OF the dollar for dollar" compa-
reached that entirely overruIed and SUI
perseded the previous methods of pro-
cedure- The original plan was that loss
committees of three members each
should be appointed, representing the
companies most largely interested in
any large joint loss. or loss in which
six or more companies were concerned,
and the loss committees were TO report
what were the sound values of proper-
ties at the time they were reached by
fire, what loss had been sustained by
fire and other facts from which the to-
tai loss could be found out, In money
values.
Each committee on loss had the SER
vice of an adjuster, who complied the
facts. Up to this stage the results
would seem to have been very fair;
but then the companies who were in
terested is losers on policies written
ly every case of either ignoring the
meetings that were called for final ac-
uon or else introduced dilatory tactics
that were equally effective
FIRST STEP Is TAKEN.
This led to the first change 1t was
voted then that after the loss COM
mittees reported it would be unneces-
sary TO hold any joint meetings to de-
n hut ho ooI,
would, be free TO adjust losses on the
basis of the findings of the committees
in their own way.
In other words. the findings of the
committee were in the nature of sug-
gestions only. which any company
could adopt or reject in it's financial
dealings with the persons whom it had
insured To the honest companies this
was satisfactory. They were sure TO
settle fairly. To the six -bitters' was
presented the necessity of either doing
as well as the dollar for dollar" COM
panies or being subjected to all sorts
OF disagreeable comparisons to the
general detriment of their regulations
for fair dealing and quick payments.
With this understanding regarding
the option of the companies to settle as
they saw fit after the loss committees
had done their work was imposed a
mittee findings should be sent to all
the companies holding policies in the
joint losses and that they should wait
seven days before they settled. This
also seemed to be satisfactory at first.
but il was soon found that some of the
dollar for dollar" companies were not
waiting for seven days TO eIapse after
they were notified by Secretary Mohr-
hardt of the board of adjusters what
the decisions of loss committees were.
but went on and settled as soon as nos
sible, seeing an advants ge in the direo-
ton of further business in being the
first to pay up on an honest basis.
TAKE NEW DEPARTURE.
This discovery started anew discuss
sion about the efficiency of the meth
DDS that had been. adopted to date
Now the step of the dollar for dol
lar" companies providing for separate
adjustments by the corporations on the
roll Of honor has made more trouble
among the 'six-bitters" than anything
that has been done TO date To make
this clear some explanation is neees-
sary. The adjusters' bureau originally.
in fact and in name, at least later
and down 20 the present time has rep
resented everyr\ company that carried