East Oregonian : E.O. (Pendleton, OR) 1888-current, 1906-08-20

what may be properly described as
"the other side" of the remarkable
controversy growing out of the San
Francisco disaster:
DOLLAR" companies heralded as the
beau ideal of American insurers, are
getting frequent short arm jabs on
vital spots In San Francisco. Where
as, they were proclaimed ready to
convert the face value of policies into
specie upon demand, it is stated that
some of the elect are doing as neat n
trick at skinning claimants as any ap-
proved land shark.
zone of the companies In the 1OO
per cent" list intends to deny liability
on risk where one of the so-called
'six-bit companies has settled at 10
cents on the dollar" writes promi-
nent insurance adjuster to local
company This is but one of the many
statements said to be received in
Portland. Insurers who before had
made up their minds to select with dis
eliminating care against the six
bitters," receive such information now
as to convince them that the gloss of
"dollar" promise was thin.
Poiicyholders who understood that
a 400 per cent policy meant full
payment and quick action in San
Francisco, are now learning that all
companies intending to pay In full
promise to do so only on the usual in
surance condition of proving actual
loss by fire. There are few contin-
gencies in this program that the en-
thusiasm of early applause neglected.
One is the earthquake saving clause.
Positive. unequivocal earthquake
losses are nearly always excepted.
Then there is the salvage deduction.
Not one of the companies making ad-
iustments in the usual manner but has
a salvage reduction, the average for
all San Francisco being rom one
fourth to one-sixth of the total risks.
Are Graftcrs, Too.
Also. countless representatives of
the companies who felt the sting of
early charges point out where the So
called 100 per centers" are more
drastic In their settlements, and more
exacting of the claimant than those
companies who were willing to make
a compromise settlement at a figure
agreed upon, to avoid delays of ad-
justment and the fuctuating pros
poets when computing all Of the reg
ular exceptions.
Professor whitney, employed by
the san Francisco chamber of com
merce, to make full report on the in
surance situation, in conjunction with
Insurance Commissioner Wolfe, has
given some Of the dollar companies
the hardest rap received since they
got into the limelisht Tn publishse
intcryiew be- [-lS-j,'l-r'i>-<
~-"cn6 OF the points dcvcIpr 1y Cfa
reports to date is the inqccuracy oi
the so-caleI dollar classification
which has had so much vogue on the
coast i find that some OF the "35"
(dollar companies) have compromised
claims generously exacted large dis
counts for cash prepayment and in
spirit, at least, have not lived up to
their published principles. The deeper
go into the question, the fewer COM
.panies I find that are paying dollar
for dollar on the claims as filed with
them"
With. these numerous statements
has Geen received the sworn list Of
losses of all companies operating in
San FRANCISCO showing the gross
amount OF. all companies operating in
San Frahesco, showing the gross
amount of risks involved, the amount
to be deducted from the risks of each
company because it is covered by re-
insurance. and estimated salvage, the
total deductions snd the estimated net
losses as furnished by the company
managers May TO, July 1. This table
shows that the companies have from
"a quarter to third Of their total risk
,relnsured, and that the salvage de-
duGtions they expect to make will be
from one-quarter to oneysixth.
w. B Streeter, who is well known
in local business circles as an insur-
ance man and observer of such events,
went on record this morning with
much emphasis against the public as
sumption that the dollar" companies
were doing the right thing all of
the time, and that those who suggest
ed compromise percentage basis
sought to inJure the pollcyholders.
"As is being proved daily" said he,
''in many cases the policyholder who
accepted a compromise settlement for
any fair figure, received more than
the one awaiting adjustment, not to
speak Of the difference in time.
That compromise was suggested by