The San Francisco call., 1906-06-14
OPPONENTSO Of REDUCTION IN PAYMENT
OF POLICIES Will FORCE AN issue
Representatives Of Companies Who Will Honor Obligations
Determine to Reach Thorough Understanding
DEVELOPMENTS in Insurance Circles Indicate That There May
Bea Split in the Fire Underwriters Adjusting Bureau.

One of the foremost authorities on
insurance in San Francisco, now con-
nected with a, large company that
seemingly intends to do the fair thing.
corroborated the various warnings that
Insurance Commissioner Wolf has been
sending out to policy-holders. Yester-
dey this man said:
1 could not be persuaded to wait, no
matter what representation was made
to me to persuade me to delay in the
filing of a claim of loss. The question
is easily raised by any company as to
whether its representatives in San
Francisco have been authorized to
waive notice of loss within sixty days
and to extend the period. Insurance
Commissioner Wolf has done what he
but the com anies are still free to
bring up technical points. In the alb
sence of the proofs OF loss the losers
are in danger of forfeiture. l would
friends, because the sixty days allowed
for the fling of notices of loss practi-
cally expires on June H.
The greatest interest attaches to the
showing of losses that will be made,
in the aggregate, by the losers, not
thousands of loss proofs have been hled,
there are always many persons in
business who delay until the last
minute. The aggregate figures will be
in the hundreds of millions of dollars.
The companies that have met small
losers individually and have paid or
effected compromises are urging the
adjusters who are working with the
loss committees appointed in joint
losses to get in reports as soon as pos
sible. Large figures will come in
through such reports.
JOINT MEETINGS ABANDONED.
In each case a loss committee. con-
sisting of three companies, has for
chairman the largest loser in that in
dividual case. Each committee has an
adjuster, whose duty it is to investigate
all the facts and return an itemized
statement to the committee Since a
new rule was adopted by the board of
fire underwriters in meeting in Oak
land, the adjuster has not been called
to give up information to any meeting g
that was qualified to act for the COM
panies. All calling of meetings Of the
companies concerned in joint loss
has been abandoned.
Hereafter, at the end of seven days,
after receiving a report, each company
will be free to take up the matter of
settlements with it's own policy holders
on its own basis as heretofore mention
ed and without consulting with other
companies. Secretary Mohrhardt sent
out his last call for a meeting on Tues
day of the present week.
In the meantime, however, the ap-
pointment of loss committees will be
continued. At a meeting of the adjust
ment bureau yesterday committees
were named which brings the in
vestigation of more than 100 joint
losses in total to date into Immediate
view
Some losers by fire are beginning to
think that a systematic movement is
engineered by certain insurance COM
panies to get them scared so that they
will, settle on any basis that is propos-
ed. There may be no truth in this
idea, but in the ease OF the Traders
Insurance Company a Chicago attor-
ney made statements, in open meeting,
in which the losses were made higher
and the assets were made to appear
lower than the real amounts, accord
ing to information since forwarded
from Chicago to the committee of
policy holders of the Traders Company
If any argument could persuade the
policy holders to accept 25 per cent
less than their full claims, the amount
saved by the insurance companies
would amount to between $4,000, 900
and $37.500,0o0, a large stake to play
for, at the cost of San Francisco.