The San Francisco call., 1906-07-02
WHY
He RESIGNED
Driffield Writes of
Transa tlantic
Affairs.

v. Carus Drifield, formerly Pacific
Coast manager for the Transatlantic
Fire Insurance Company of Hamburg;
a concern which has so far not paid a
single cent of its $4,000, 900 losses in
San Francisco. has sent the following
letter to Insurance Commissioner Wolf
explaining his reasons for resigning
tive and stating the financial condition
of the German company as he under
stands II.
He declares that he resigned his po-
sition because the company would not
satisfactorily explain TO him it's inten-
tions regarding the settlement of it's
San Francisco losses. He says that
he is willing TO help the organized
policy holders in any way that he can.
Driffield's letter is as follows.
Hon. E. Myron Wolf, Insurance Com
missioner, City:
Dear Sir: The Transatlantic Fire In
surance Company is, as you are aware,
very heavily involved in the losses oc-
curing by reason of the recent disas-
trous confagration in San Francisco.
My original Instructions from the home
office were to admit no liability what
ever pending their full investigation OF
the circumstances, and upon receiving
local conditions and the legal points
involved they further instructed me to
await the arrival of a special represen-
have authority to deal with the situa-
tiOn in their behalf. Such representa-
tive has been on the ground during the
ed his views to the home office. which,
/ may add, were in confirmation OF
those expressed by me.
AS the result of such cabled. inter
.f rt0www II Nt-e
forced TO the conviction that the COM
pany is apparently not in a position to
meet its fun engagements OF course
the determination OF which will depend
the exact amount OF it's liability. The
statements in the local press OF today
regarding the financial condition of the
company are entirely erroneous. for the
capital and surplus OF the company, as
shown In It's 'honae office annual state
ment, aggregate the sum of $1,964,3 ,326.
Should the company have treaty rein
surance in Europe to the extent that ]
believe, and such reinsurers prove sol
vent. the cause for uneasiness ON the
part of the local poliey-holders Is al
Owing to my inability to secure from
the company any satisfactory express
ter of the settlement of their San Fran
cisco confagration losses | cabled them
on the 18th inst. to the effect that un-
less was promptly advised in such
regard WOulQ TeslSU. ne dSSlStd1l
manager, Mr.. III. Banker, Joined me in
such cable, to which we this afternoon
received reply as follows; We accept
your resignation"
Under date of 10th inst / notified all
agents to decline the acceptance of any
further business in behalf of the COM
pany, and suggested the propriety OF
the cancellation of all business accept
ed subsequently, to the 18th of April
last.
From the occurrence of the losses up
to the present time we at this end have
endeavored to facilitate the assured in
their presentation Of claims, etc, as far
as possible, and l cannot express my
deep sense of regret in now being
obliged TO advise them through you OF
the conditions as they appear to exist
/ take this, my first possible opportu-
nifty, of notifying you of the situation
in order that the interests of the policy
holders affected in the confederation
may as far as possible be safeguarded
learn the policy holders will organize
as a body, thus minimizing the possi-
bility of an undue dissipation of the
available assets of the company by rea-
son of individual and unnecessary Iiti-
cation, etc. To the representative OF
such body 1 will cheerfully give such
assistance as Is in my power, to the end
that legitimate claims against the COM
pany may receive the satisfaction tc
which they are entitled Yours re-
speetfully,
v. CARUS DRIFFIELD,
Former Manager.