The San Francisco call., 1906-07-19
Some Companies VIII In
crease, Others Less
en- Capital.
READJUST THEIR AFFAIRS

Half dozen fire insurance compa-
MES, a well authenticated report has
1t, will either increase or diminish their
capital stock at once The stockholders
of the Hanover Fire Insurance Com
pany, the Hartford Fire Insurance Com
pany and the Federal OF New Jersey
have voted to increase their capital.
The United Firemen of Philadelphia
and the Concordia Fire of Milwaukee
have taken similar action. On the other
hand, the stockholders of the Delaware
of Philadelphia have in view the reduc-
ton of their capital stock from $780,
600 to S250,000 and will hold a meet
ing in Philadelphia in August to vote
on plan that has been proposed, which
includes the setting aside of the differ
ence between 100000 and s250,ooo for
the settlement of San Francisco losses.
The details OF these financing moves
are somewhat interesting. The Federal
of New Jersey, so it is reported, will
double its capital of 100000 and will
sell the new stock and add 100000 to
its surplus. The Assurance Company Of
America, New York concern, has re-
duced its capital already from s400, 600
to 100000. The National Union Of
Pittsburg, so it is also reported, will
add $1,050,000 to its resources by an
assessment Of $40 a share, to which
the stockholders have consented. The
Concordia of Milwaukee's stockholders
have subscribed for 100000 new capital
and have voted to add $4,000 to surplus
account.
EXPLANATORY LETTER.
Some of these moves certainly indi-
cate an intention to deal favorably with
policy holders. Others may need some
explanation later.
A copy of a letter written by Presi-
dent ]. 7. Dargan Of the Atlanta Bir-
mingham Company that has just been
received here is liable to cause some
wonderment. The Atlanta -Birmin CHAM
has been reinsured by the Prudential
Fire Insurance Company of Tazewell,
Va, as previously reported. Now Pres
communication to agents of the At
lanta- Birmingham Company, extracts
from which are as follows:
While the actual loss of the At
lanta- -Birmin CHAM sustained under our
policy contracts in San Francisco is not
serious, being estimated by US at not
exceeding 100000, yet the possibility
of insurance departments ruling that
the face of all policies involved must
be construed as the amount of liability
until claims are actually settled, re-
gardless of any offsets in the way of
salvage, non-liability a company may
honestly and properly claim, made it
appear to the management and board
of directors that the best course to pro-
tect all interests involved would be to
reinsure all our outstanding business
in some responsible company with
which the Atlanta Birmingham would
be closely identified"
INsTRUCTs AGENTS.
Agents of the Atlanta -Birmin CHAM
are instructed to onctinue to issue poll
icies of that company until otherwise
advised, but they are also informed by
Dargan, so the letter reads, that I'VE
intend to withdraw the Atlanta-Bir-
mingham from active operations on it's
own. account in the early future, ex-
cept perhaps in the States of Alabama
and Georgia" The Prudential will take
the place of the Atlanta Birmingham
in all States except Georgia and Ala
bama.
Through insurance journals published
in the East announcement is made that
the Assurance Company of America has
withdrawn from business on the Pa
cif1c Coast The Germania and Eagle
of New York are announced as with
drawing from California. 1t Is reported
also that the North German of HAM
burg and the German of Peoria will
take a similar course.