The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-21
FEDERAL INSURANCE EXPOSURE
Threat Of Publicity n Companies Don't Pa,
Up San Francisco Losses.

WASHINGTON, Nov. 2O.-The power Of the
publicity feature of the act creating the
Bureau Of Corporations may be invoked
for the first time by the Federal Govern
ment in the case of insurance companies
If the concerns which did business in San
Francisco and other places in California
prior to the earthquake and fire refuse to
pay up oil their policies.
The Secretary OF Commerce and Labor,
through the Bureau of Corporations. has It
In his power 20 Expose the nsmes of the
insurance companies that nave been derelict
In making settlements, or those thnt have
absolutely refused to make settlements.
Secretary Metoalf has just returned from
San Francisco. where complaints against
delinquent insurance companies were laid
before him. Therefore he decided to take
action and announced his purpose to-day
in the following statement:
The Secretary of Comm or p and Labor has
directed the Commiseio' or OF Corporations
20 make an Investigation o. the action of the
insurance companies in the settlement OF
elaine for lossee resulting from the earthquake
and Are in San Francisco and other places in
California. George F.. Butler of Rose. Cal.
has been appointed special agent 20 conduct
this investigation In California. Mr.. Butler
has had an experience OF thirty-eight years
in the fire insurance business on the Pacific
Coast, having retired about q year prior to
the earthquake.
While Secretary Metcalt does not say
so in words. il is understood TO be his pur-
pose 10 throw h white light Of publicity
on the relations of the fire insurance com
panies With the people of California since
the earthquake and fire. 1t is the helief
- H.. AakH NLAG
OF the intentions of the Government will
have a wholesome effect on certain COM
psnies.
Information has beer received here TO
the effect that the property loss in Cali
fornia. both from earthquake and fire, is
estimated at half a billion dollars. This
as covered by about s23i 900 600 insurance.
OF this mou only about S125 900, 900 has
been liquldsted.
Before the catastrophe visited California
last April there were approximately 100
insurance companies doing business in the
state. When the trouble was over seventy
Of these concerns gave notice that they
would make ad iustments on q basis of -
cents on the dollar. About thirty other
companies caused il to be- made known
that they would settle dollar for dollar.
Most Of IT, ~ thirty companies have been
slow in making payments and some Of
them have refused 10 pay up at all. only
a very few companies have paid up in full.
While there is strong criticism Of the
attitude Of many American companies
toward the California sufferers, great bitter
ness il expressed against certain foreign
associations. notably a numb er Of Ger
man Institutions. Committees were sent to
Germany in an effort TO get the companies
there TO pay their policies. but il is under
stood that their mission was useless.
The matter was taken up with the De-
partment Of State and a request made that
the refusal Of the German insurance COM
panies to discharge their obligations be
made the subject Of diplomatic exchanges.
Whether such n step has been taken by
Secretary Root is not disclosed.
The. belief is expressed in Government
circles that publicity will be more effective
in forcing the insurance companies TO settle
in California than any other method.