Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1906-05-11
The insurance nur-ri"n.

The State Commissioner Of insurance
authorizes the following statcmct
regarding i matter which Ia uppermost
III the minds Of many business men III
the community:
Tho refusal OF the State to rcm=urc
its property for over sixty days WAS
because OF the risk il might run in
ooing business with Companies which
might BE seriously crippled b. the San
Francisco disaster. Ii will be impoaai-
BILE to tell for some wccks yet what,
companies have been the hardest Eit.
Ii would be a miracle il some did not
go To the wall. | believe the losses will
pass the two hundred million mark and
some authorities give Il higher estimate.
This exceeds the surplus Of all the COM
panies in California at the time OF the
fire.
Some OF the companies had their
offices s. completely destroyed that they
did not save their books Lud | have
already received word from compInics
IN San Francisco to scnd them certified
copies OF their annual statemcuts
filed with this Office at the beginning Of
the year.
This will Civ, you some idea Of the
co npletoness Of their losses IN the rari.
ous offices.
The losses will - fall entirely upon the
California Companies but 1t docs not
seen uniformly Distributed
Out side estimates largely Exceed the
losses given out by the companies
themselves, Here are some u the con.
di,ions adverse Ia the Insurance Com.
panics.
The practice al undcr.in-urancc in
proportion TO value III California; the
absence Of cO.!nSurancc and similar
provisions; the great loss in the resi-
dcncc or preferred district the large
shrinkagc in securities, not only Of
California securities, but all class ~ Of
securities held hy TIE Companies; the
high rates OF interest of money. and the
possible further arrangement OF the
markets; the difficulty, even III case Of
Of willing Stockholders. OF paying up the
assessments or contributions which
must he made to enable many Of the
Cnmpanics To continue IN business; the
minimum effect upon values caused by
the earthquakes; the Tact TINT the extent
~ the earthquake losses can he readily
asccrtainrd because the fire aprcad slow
~ and that the courts will be quite likely
to cOnstrmC the earthquake or falling
wall ~clnuscs literally M t0 the assured:
the fact that the California statutes are
favorable Ia tho nssurcd in several
rc~prcts, Including tho question 1T loss
oCraaioncd by tho uao Of dynamite or
o,hpr methods Of limiting 81 c%OniIagra.
ton area; and the possibility that the
statements required by the Insurance
Commissioners II Tho different Stntca
Will reveal conditions moro u]nfavorahlc
than unv" bcrn anticipated mud will
drag ~ Companies whose lUssCa through
re- insuraDcc have not otherwise nccn
Disclosed; all Of these th,nga aud more
must bc given due weight.
Na the Losses by the Compnuics and
10y the community are greater than ~
my single calamity IN tho history " the
world N timo ~ peace no precedent
exists Tor Nt,matinG their effect. Ono
thing is perfectly cl'nr. Every buyer
81 insurance ought :" give attention Ia
his insurance aud his hazard mud To
obtain outside AMI independent rcporta
upon Compnnice to which hc is carrying
insurance. The great MINORITY nf