The San Francisco call., 1906-06-29
NEW COMPANY
TO HELP OLD
Fireman's Fund Will Pay
With the Aid of
New Business.
Legitimate Losses Are to
Be Settled Dollar
for Dollar.
Baby Corporation Ex-
poets to Sustain Con-
fidence of Past.
B. Faymonville Has Ad-
dressed a Letter to
Policy-Holders.
OAKLAND. Cal. june 27, 1906.

OAkLAND, Cal, June u, ISVo.
To Our Agents and Friends:
The lamentable confusion and mis-
understanding that appears to exist
between the public and the insurance
interests. with respect to the treat
ment of claims arising through the
recent appalling disaster in San Fran
cisco, prompts me to lay before you
a frank statement of the conditions
of the old Fireman's Fund Insurance
Company and its attitude toward its
claimants.
On my return. May I. from business
trip to the Philippines. 1 found the
| insurance business in a most awful
confusion and chaos. President Dut-
ton and also all the other officers
and employees of the company were,
and are still. struggling heroically.
manfully and conscientiously to bring
order out of chaos, to preserve the
integrity of the company and to pro-
tect its policy holders, not only for
It's own sake, but for the reputation
of California, to which State it has for
forty years been a credit.
The company had undoubtedly re-
ceiyed a terrific blow. Its office, with
practically all it's Pacific Coast rec
ords and maps. had been burned. Not
scrap of information remained to
indicate the company's liability in the
destroyed area. Most of the officers,
directors and employees had been
burned out, and were scattered to the
four winds. Many shareholders had
also been burned out and were finan-
cially crippled. The company, being a
loyal California institution. had in
vested largely in California and San
Francisco securities, and these Securi-
ties had likewise suffered severely.
The inability of the company to give
an intelligent statement of its San
Francisco liability, on account of the
complete destruction of its records,
caused a stampede among many of its
outstanding policy-holders, of whom
there were at least 100000, and an
avalanche of cancellations and demands
for return premiums followed. The
banks were closed by proclamation of
legal holidays by the Governor, and
the company's bank account was there
fore unavailable. Inability or refusal
to meet return premium demands
would have placed it in default and
would have wrecked the company even
before the San Francisco liability
could have been ascertained.
All other companies operating on the
coast had also been hit very hard by
the disaster, and were in no position
to consider measures for the relief of
the Fireman's Fund. President Dutton
in this exigency conceived the plan of
organizing a new corporation with new
funds to relieve the old company of
the threatening liability under its out
standing unburned risks. After en-
countering and overcoming almost in
surmountable difficulties the project
was made success and the Firemen's
Fund Insurance Corporation was in
corporated, the necessary funds paid
in, and 1t was. duly licensed to conduct
the business of insurance by the In
surance Commissioner of California.
The stock of the new company was
subscribed partly by such stockholders
of the old company as had not been
ruined by the disaster. larger part
was taken by new investors. and
small part is still at the disposal of
such as may wish to enter the venture.
OF the permanency and success of the
new corporation there can be no ques-
tion. for with a capital stock of ST.
100000, and a surplus fund of like
amount it will rank as one of the
greatest in the list of Americas re-
naming companies.
| The new corporation at once as
sumed all outstanding liability of the
| old company, under policies issued and
that may be issued not involved in any
| loss on April 18, as explained in the
| Joint circular letter already sent YOU
thus making those policies sound and
dependable AS a result the cancella-
tions and demands for return premiums
have ceased.
The old Fireman's Fund will now
devote itself to the task of ascertain
ing and liquidating its losses by the
San Francisco disaster. At the clam
orous demand of the public the time
for fling claims was extended to Au-
gust Is, and as the company has no
records of it's own it will be compelled
| to wait until that date before it's final
| liability can be determined.
We are adjusting the company's
losses fairly and honorably on the
merits Of each case. We are not ex-
acting an arbitrary deduction of 25
our adjusting department has absolute
instructions to assist every claimant
| in the preparation of his proofs and
the completion of his legitimate claims
against the company.
We intend to pay all legitimate
claims dollar for dollar. and to do so
| the company will surrender every
sess sufficient funds to go around it
| will call on its stockholders for more.
! l know that other officers share with
me the sentiment that we are person
ally prepared to yield up all we have
left to meet our share of the liability
and to preserve the good faith of the
company.
1t is with feeling of profound sor-
row that ! realize that the old Fire
mans Fund. with which l have been
associated for twenty eight years, will
probably have to retire, but in retiring
1t will endeavor to treat every claim
ant fairly and equitably. l consider
that the company was perfectly fire.
proof. but 1T was hardly earthquake
proof
1t is my opinion that IL our agents
and friends Will accord the New Fire
mems Fund Insurance Corporation the
same enthusiastic loyalty and support
which they have always extended the
old company the new enterprise will
in a remarkably short time become the
equal in strength and popularity not
only of the old company, but of any
! other insurance institution.
Faithfully yours.
BERNARD FAYMONvILLE