New-York tribune., 1906-04-22
AT LEAST IA FAILURES.
FIRE INSURANCE LOSSES.
British Companies Hard Hit by the
California Disaster.

Although New York fire insurance underwri'-
ers got little or no direct information from l"eii
San Francisco general agents yesterday. they
learned enough from the newspaper reporS VI
the disaster to tell them that at least fourteen
insurance companies would be wiped out Just
what companies will go one ventures 10 pro
dict The estimates of the total loss to the IN
s1rance companies have not varied from FIT
days estimate Of S225.0OO.OOo.
AS result of the San Francisco disaster
there was great rush of insurance business
yesterday. Brokers all over the CITY cofhihuih-
o+ad With their clients and advised the cancella-
ton of policies In certain companies whlch are
.Iikey to go by the board These cancellations
were made promptly. and new policies taken out
in companies which are certain TO Withstand the
San Francisco shock On Monday there VIII be
a new insurance movement. Holders of policies
in this and other cities are looking over their
noIioies IL they find that they are not insured
IN the fullest extent they will take out new
policies.
From figures worked out yesterday 1t appears
that the Hartford Fire Insurance Company VIII
be the heaviest loser. 1t carried some Sl3.ooo-
600 of insurance in San Francisco. Insurance
experts are figuring loss of 30 per cent on the
total of insurance carried. This will mean a loss
to the Hartford of S6.5OoOOO. The cornpanys
reserves are In excellent shape. and 1t will un-
doubtedly be able to meet all it's losses.
The British companies seem to be next in line
in heavy loss Local insurance experts familiar
with San Francisco insurance conditions say the
London Assurance Corporation will be the sec
ond heaviest loser After that come the Royal
of London the Commercial Union and the Lon
don and Lancashire
In the past British companies have paid their
American losses out of fund created by the
American receipts. The San Francisco losses
would entirely wipe out the American reserve.
and accordingly the companies have ordered
their chief representatives in this country to
draw on London for their California losses. The
companies have decided not to diminish their
American reserves.
Vice-President Correa OF the Home Fire In
surance Company. spokesman for many Of the
big fire companies, said to a Tribune reporter
yesterday:
THE fire companies are just beginning to
hear from their representatives in San Fran
cisco. The messages which came through to-
day were filed Immediately after the earth
quake and before the fire; therefore, they do
not give much insight as to existing conditions
and losses.
There is going to be considerable trouble
over insurance records. Few of the companies
kept complete records at the home Office They
had general or district agents in San Francisco
and their records have largely been destroyed.
There Is doubt that the companies will treat
with their clients In most liberal fashion and
that genuine losses will be paid promptly"
The Home Fire Company is one Of those
keeping complete records at the home Office.
Yesterday twenty clerks were put to work trac-
ing San Francisco policies. The data thus OBJ
tanned will be forwarded by special agents Mr.
Correa estimates the fire insurance loss at S12O-
100000
Naturally California will be put to desperate
straits The most important Of the local COM
panies is said to be the Fireman's Fund Com
pany Of San Francisco. Much Of its resources
were invested in the bonds OF concerns made
absolutely bankrupt by the disaster. It's sub
sidiary company, the Home Fire and Marine OF
California does not carry as great an amount
of San Francisco insurance. but from force of
circumstances Is equally involved.
Fire insurance experts declared yesterday that
the San Francisco loss would bring about re-
form In fire insurance along peculiar lines. The
we'll established companies. for the accommo-
dation and profit Of their agents have been In
the habit of taking more insurance on certain
properties than they cared TO carry as a COM
pany risk These added risks have been REIN
sured, naturally not in companies strong as
the one which wrote the business The old COM
panies viii pay their full losses. but they do not
expect to receive more than 80 cents on the
dollar from the companies IN which they have
reinsured. This will result IN general cutting
down OF risks. The established companies viii
take no more insurance than they can carry on
their reserves.
There Is not going to be any general Increase
of insurance rates over the country. Rate wars
now being fought in several large cities will be
forgotten. The companies will get down to a
clean business basis and write the amount of
insurance their experts believe they can safely
carry. Last year was OF the best that the
fire insurance companies have known In years
One Of the biggest underwriters In the city de-
clared yesterday that 1t would take ten years
of good business to recoup the companies for
their San Francisco losses. Put in another way.
San Francisco for the last thirty years has been
a most profitable town for the Insurance COM
| panies This disaster wipes away the profits of
| that long period.
| 1t is also pointed out that the insurance COM
! pany loss is usually less than seemed at first.
| The Baltimore fire was first supposed to cost the
insurance companies S1OOOOOOOO. The final re-
| suit was that the companies paid about S39-
| 100000. which represented the insured loss
MANSFIELD TO REBUILD RUINED CLUB.