New-York tribune., 1906-04-25
HALT ON INSURANCE.
WRITE NO MORE POLICIES.
Boston Company Hard Hit bg San
Francisco Disaster.


country telling them to cease writing policies.
These letters said:
In view OF the uncertainty of the probable
amount that we may be liable for in the San
FRANCISCO disaster. we deem Il advisable to ask
mat you cease writing for US until further ad-
siseo We are as Yet without any Information
beyond the fact that our losses serious
Fire underwriters in this city expressed belief
'hat the company would go out OF business
Whlie they said the confidence IN the company's
management was great as TO enable it to go
on II its stockholders made good any impair
ment OF capital
several New York agents of foreign companies
nave been fearful that the San Francisco disas-
ter would cause the companies TO withdraw
from the American field One agent yesterday
displayed in the window OF his Office so that it
could be read from the sidewalk. a message he
had received from the home office. The mes
sage consisted OF only word-"Continue."
The Transatlantic. OF Germany. on account of
i's large business in San Francisco. has been
looked on by some brokers as certainly total
wreck; but the New York agents received
cable message from Hamburg yesterday IN
srueung them TO go on doing business. 1t is
known to some OF the chief underwriters that
lhe transatlantic has reinsurance contracts
WIN some strong French companies. which will
share its losses.
Inc New York Fire Insurance Company 1t
also was feared. had lost more than its surplus.
ana perhaps as much as its capital and surplus.
brt yesterday one stockholder offered TO sub
Ncribs $4,000 new capital ano another $4,000.
sc that the officers OF the company, who are
highly respected. saia they were sure that what
ever impairment the company had suffered
would be promptly made UP and the companys
solvency be thoroughly established. 1t
aE,~
philadelphia. endeavoring 10 reinsure its
entire business with another company.
The directors of the Providence Washington
Insurance Company. OF Rhode Island. met yes
terday. and while the officers Of the company
felt that the losses would probably not require
as much as the net surplus. the directors decided
that If the capital Of the company was impaired
an Immediate call would be made on the stock
holders 10 make up such impairment
Several leading insurance officials from Chi
caeo are already on their way to the Pacific
Coast 10 assist in settling the affairs of their
companies. and some adjusters have also gone
from New York The London Assurance Cor
poration is sending out David Lawrie and
George H Marks. formerly American manager
Of the company. and c. A HELM, foreign secre-
tary Of the Svea Fire and Life Insurance Com
pany OF Sweden. sails for New York from Bremen
tomorrow.
one Of the most important features Of the sit
uation developed yesterday in conferences last
ing nearly al day between many Of the leading
fire insurance men, who realize that rates must
be greatly increased in many parts Of the United
States If the stockholders are to be encouraged
TO repair the insolvency OF some OF the Ameri-
can companies. and II the foreign managers OF
some OF the European companies are to be dis
suaded from the half formed purposes Of dis
continuing American business altogether. It is
known that at least two very strong British
companies were almost determined TO discon-
tinue American business directly after the Bal
timore fire. Now the chance is regarded as
strong that not only those companies. but others,
will feel unwilling TO continue unless general
advance IN rates can be made throughout the
United States.
Most Of yesterday was devoted TO the arrange
rnent for such an advance. The manager OF one
English company said: ''Yes, we go on and have
fve. six or seven years OF good business then
comes along a great fire and sweeps away all
that we have made IN the good time. The num-
Der OF great Ares end the recent Investigations
Of American cities positively justify the con,
clusion that there viii be other great fires, ana
the companies must be prepared TO pay the enor-
nous losses that win thus occur"
The New York agent of one OF the large Eng
lish conpantes said yesterday that the profits or
some of the American fire insurance companies
in the rise in value OF their investment securl-
ties for several years past would be almost
sufficient 10 enable them meet their losses In
San Francisco. There was a report In WaIl
Street yesterday that some of the large banks
were forming syndicate to buy up the securl-
ties which the insurance companies would De
ConnDelled to unload 10 meet their San Francisco
losses. thus preventing ss %. one
tradicted by officials OF some Of the banks men
toned in the rumor, but II was said the banks
probably would make large loans on such secu-
rifles thus enabling the insurance companies 10
borrow all the money they needed without sac
rifcing their securities
Rearing on this situation, there was pubnshed
Yesterday In the financial district portions OF
report made by the State Superintendent OF IN
surance two days before the earthquake, show
ING the securities held by the American fire IN
surance companies. Among the notable mold
ings of stocks mentioned in the report are the
following;
TIome-Book value of bonds and stocks. S15.-
3S4 452 including Pennsylvania Railroad 2OoOO
shares; Morris & Essex. Reading first preferred
Southern Railway preferred ana Lehlsn ers ssIIeS
each 5000 shares; Baltimore & ONO pre1erreo'
0'Se 'Co1tinental-Book value $13.O71 .652. includ-
ing Brooklyn City Railway 1000 shares' Fenh- %
.-1Y,,onia 1000: New York and Harlem. o,O2l
Louisville & Nashville. 1900; St Paul preferred
and Union Pacific, each 5000.
@'Ig Hartford-Book value s11.659 73s. including
New york New Haven q Hartford. ISIS
shares: Northwestern 1ls9 2 shares shares s11 $50 900
Including New York. New Haven Hartford
2SSS shares. eoe,-o-o ,,
Tennsylvania, 1900 shares: Manhattan Rail
way 200 shares 49,.
Ntagara-Book value. $4,921,41 including
htchIson preferred, Baltimore q Ohio and Penn
svlvania each 1900 shares.
Phnnix OF Brooklyn-Book value. S651217O
,rcl,,ding Northwestern and Lackawanna each
hOpO shares: New Jersey Central 5000 shares.
German American-BoOk value, Sl2 126 69l.
including Pennsylvania. 6.666 shares: Union
Pacific preferred. 3.40O; Southern Railway pre-
ferred 8. 100: 81. Paul preferred 300; Balti-
more & Ohio. 200