The San Francisco call., 1906-08-02
Calls on Concern
Either to Pay
or Shut Doors
HOME FIRE ALSO
WILL GET NOTICE

Will send notice today 20 the presi-
dent and directors of the Fireman's
Fund Insurance Company and the
Home Fire and Marine Insurance Com
pany, both Of San Francisco. that IN
less they can make good their de.
fciency in four weeks ne viii request
Attorney General Webb to proceed 90
ascertain why their business should
not be closed up and their licenses 10
do business in California revoked.
Both companies have been Nknown 20
be in financial trouble since the fire.
The Home Fire and Marine Insurance
Company has announced that - Will
do no more business. The Fireman's
Fund has reinsured its risks 70 the
amount Of S3z25s475O carrying pre-
.rniums amounting to s4,47LII7,O3. with
the new Firenen's Fund Corporation,
xhich has been ORGANIZED since the
IRE. Both companies have thus con
fessed failure.
William J. Dutton is the president Of
both the Firenan's Fund Insurance
Company and the Home Fire and Ma
rine Insurance Company. Bernard Fay.
monville and J. B. Levison are the vice
presidents Of the Fireman's Fund In
surance Company and Lewis Vein
mann is secretary. stephen D Ives is
vice president and Franklin Bangs sec.
retary Of the Home Fire and Marine
Insurance Company. All the stock of
the latter company is owned by the
gireman's Fund Insurance Company.
CAUSE OF THE FAILURE.
Exceptional conditions are assigned
By President ". J. Dutton of both corr
porations for the straits in which they
are placed Ordinarily a salvage of at
least 25 per cent is realized after a
fire, but there was very little salvage
IN san Francisco. the intensity of the
flames having caused the consumption
Of practically everything in the burned
area that was infammable.
Then reinsuring companies have
given notice that they viii not pay
because Of the conditions attending the
San Francisco fire.
Insurance Commissioner Wolf has -e-
ceived statements from the officers Of
the two corporations that have left
no doubt in his mind that it is his
duty to act Oficers of the corpora
lions say that he is strictly within the
line Of his duty in the matter.
The step is painful to u.s. said Vice
President Faymonville of the Fire
mans Fund last evening, but the In
surance Commissioner has done only
what he is required to do under the
law"
The newly organized Policy Holders
League and the Organized Policy
Holders have had recent conferences
with the officers OF the two insurance
companies. All the facts were duly
considered by Insurance Commissioner
Wolf before he decided to issue notices
TO the two concerns.
LAW DEMANDS ACTION.
Section 500 Of the Civil Code is man
datory upon the Commissioner Of In
surance OF California in such cases as
the present. 1t provides that when
ever the Commissioner ascertains that
any person engaged in the insurance
business is insolvent within the mean
ing Of the chapter he must revoke the
certificate granted and send notice be
mail to such person, addressed to him
at his principal place OF business, or
deliver to him personally, notice of
rlch revocation and cause notice there
5f to be fled in his office. Then he
must publish the notice four weeks
ard shall require that no more new
policies shall be issued and that no
old ones shall be renewed. He must
also give notice that. the capital must
be repaired within such period as he
may designate by assessment upon the
stockholders for such amount as will
make the capital equal to the amount
Of paid up capital. exclusive of assets
needed to pay all ascertained Liabilities
;er losses reported, for expenses and
taxes and exclusive of the entire pre-
miums received from outstanding risks.
Four weeks viii be given the two
companies to make good the finances.
according to the terms Of the statute.