The San Francisco call., 1906-06-05
TRADERS
GLEN TS
ARE FIRM
Company S POlicy-Holders
Decline to Propose
Compromise.
Recommendation Is Made
That Full Payment
Be Forced.
Committee Reports That
Stockholders Are Able
to Meet Loss.

Policy holders Of the Traders Insur-
ance Company unanimously rejected
yesterday a proposition TO send an at
-torney to Chicago with authority to
accept IS per cent Of the face of their
claims for losses or any other amount
that could be secured. They then ac-
cepted report of A committee, headed
by William T. Humphrey. in which the
statement was made that THE stock
holders of the Traders Insurance Com
panv are financially able to pay their
losses in fun and are legally liable for
the same, and that this liability can be
enforced by an action in the Federal
courts Of the district where the stock
holders reside.
The report contained q recommenda-
tion that a committee of seven should
be appointed or d corporation should
be formed TO enforce the collection of
all policies
FACTS NOT SECURED YET.
Acceptance of the report did not in
Volve any immediate action. Represen-
tation was made by members of the
committee Of stockholders that the
sudden departure Of Attorney Bates
from San Francisco after the meeting
last week and the fact that Lewis A
Of the Traders Insurance Company,
now in Oakland. would not give any
information until he had authority from
the receiver in Chicago had prevented
the securing Of any additional infor-
nation about the financial affairs of the
company and Of its stockholders.
For the committee William F. Hum
phrey explained that immediate action
under the report was not expected. The
committee proposed TO make sugges-
lions TO the policy-holders and then
defer action for one week TO let the
policy-holders have time to think the
entire matter over. In the meantime
every policy holder should file proof of
loss Immediately. as recommended by
the committee The proofs once filed.
the pOlicyhOlders would meet no harm
by waiting. and there was no danger in
delay.
COMMITTEE REPORT.
The report of the Committee in full is
as follows:
San Francisco. June l. 1906.
To the Policy Holders of the Traders
Insurance Company of Chicago: Your
cO-7mitteo respectfully recomends:
First-In so far as Thomas Bates
rciuarks at the last meeting may be
r~ne- ~'Ic7 - "1 offer To paw so per cent
OF the liabilities OF the Traders In
s-r--l-e COMPANY OF Chicago, that the
Second-AII policy holders immedi-
stely give TO said insurance company
satisfactory proofs of loss in the fol-
lowing manner:
(A) Serve one on Messrs Gordon &
Frazer, local agents Of said company
CB) Mail by registered letter a dupli-
cate 70 Byron L Smith, receiver Rec
tor building, Chicago, Illinois.
CO Mail by registered letter a third
10 the home Office of the Traders In
surance Company of Chicago, at Chi
c3go. Illinois
% Reserve a copy for future use
and note thereon the time and manner
of making the services as above SET
forth
)Fhird-Forward 10 John S Partridge
secretary Of this committee, care of the
Market Street Bank. Seventh and Mar
ket streets. the number. date anc
amount Of your policy and description
Of the property insured; also your pres
ent address
Fourth-The appointment of a com
mittee of seven. or the organization OF
a corporation TO enforce the collection
IN explanation of the above recon-
mendations we beg TO report that we
have been unable TO verify the figures
furnished by Mr.. Bates, or TO inveSti-
gate fully the condition OF the Traders
much as Mr.. Moore, the representative
OF the receiver, considers himself
powerless TO give any information ex
cept by order Of the receiver. and We
have wired Mr.. Smith to instruct Mr.
Moore to gi=e us all information a
his disposal a1d to furnish a list o.
stockholders. with their respective hold
lngS, and no answer has been received
Our other Investigations convince VI
that the stockholders Of the Traders
Insurance Company are financially abl'
70 nay the losses in full and are legally
liable for the same. and that this liza,
bility can be enforced by an action il
the Federal courts of the district:
where the stockholders reside.
Respectfully submitted committee
by WILLIAM +. HUMPHREY
Chairman.
The policy-hoIders met in the syna-
sgogue at California and Webster
streets at ? p. m. Marshall Hale pre-
sided There were several hundrec
pOlicy-holders present.
PROPOSES COMPROMISE.
Immediately after the report of tn,
committee was read A Aronson roS'
TO oppose the action which the com
naittee suggested. He said that wher
a lawyer told the policy holders to gS
10 law the lawyer was not their friend
He held a policy for $4,000. II he re
ceived an offer for IS cents on the dol
lar and believed that was the most h,
could get he would accept the com
promise. II the policy y-holders went I,
law, Aronson also said, their none,
would be tied up for some years. Mr.
Aronson also moved during the cours'
Of a discussion that followed that
small assessment should be laid OIL
the policy holders to send an attorne.
70 Chicago. who should be instructe,
TO accept rs cents on the dollar if pay
nent could be secured in sixty days.
Attorney Otto S. Wise favored the ac
ceptance of a compromise.
Messrs. Humphrey, Hale, P&re<Sdg &
and Linforth, the policy-h holders com
rnit1ee, and W. J. Herrin. W. NJ. Good
win and Alfred H Cohen presente,
facts in support of the committee re
port.
Linforth claimed that on the basi
of the figures made by Lawyer Bates
who came TO San Francisco TO see i
q compromise of SO cents on the doIla
would be accepted by the poIicy-hoId
ers. there was already so per cent i,
sight without any assessment Of th
stockholders.
SAYS RUIN WOULD FOLLOW.
TuAn S. Partridge stirred the policy