The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-24

Heard Uf such n ~Pian-plcntI Of Time
OhiO Starts inquiry into Condition
or Companies Other states WIN Follow
Henry Evans, president Of the Continen-
tai Fire Insurance Company. said yester-
day that he had been approached by
bankers who wanted to lend money to fire
companies in America hit by the San Fran
cisco agaration. Taking the total
fire insurance loss payable at San Fran
cisco as sl25, o00.OO o 1t is estimated that the
American companies III settling the claims
will have to dispose Of at least $35, 900 coo Of
securities, Apparently. it is the purpose
of the bankers interested in the proposed
loan to advance money on the securities
as collateral and thus keep the stocks and
bonds out of the market. Mr.. Evans did
not name the bankers who had approached
his company, but the Continental rejected
the proposition because. according to the
president, it has sufficient cash in bank.
There were rlmors Of such a movement in
Wall Street but prominent bankers said they
knew nothing definite about it. Officers
Of other fire insurance companies said
they didn't believe there was any necessity
for the organization of a pool Of bankers Of
that sort. They said that the companies
''''' 'Ni' ''liSV'' w FNli nv Wv
to meet the San Francisco claims would
have at least two months in which to do it
and in their opinion the liquidation could
be accomplished in that time without serious
loss to the companies and certainly with
out much effecy on the market. Fire in
surance officers estimated that probably
50 per cent. Of the loss will have to be. paid
with funds raised on the sale Of securities
As a general rule the securities held hv the
life companies are standard.
The fire companies have only meagre
details as yet in regard to the extent of the
damage, and it will probably he two weeks
before they have definite Knowledge of
the buildings down. Some fire insurance
experts are inclined to put the total loss
10 the companies higher han SIPS. ooo. On0,
the figures named last Saturday. President
Evans of the Continental, although he has
no positive knowledge, estimates that the
losses to the companies will foot up to
$50, 600, COO, He is not inclined to regard
very hopefully the late reports, which say
that several OF the big business buildings
supposed to be in ruins are standing and
apparently not greatly damaged. Presi-
dent Evans said there were the same KINDS
Of reports after the Baltimore fire, but
when the companies came to go into the
buildings and overhaul them 1t was found
that they were practically destroyed.
The Home Fire Insurance Company
received this despatch yesterday from H.
l.. Rolf, the comPany's general agent in
San Francisco:
"Our agency supplies destroyed. SEND
new supplies at once 50 that We may write
the business that is coming to us"
The Home company sent out its general
adiuster Yesterday afternoon with i~nstruc-
tons to stand up perfectly straight in his
dealings with the inslred-not to throw
the company's money away, but not to
"gouge" the insured. He was told, in short,
to be absolutely on the level. The officers
of the Home company do not anticipate
that there will be any trouble in settling
the claims in their company. They do
not anticipate that any Of the cases will
We carried into the courts. As in the case
of the Baltimore fire, questions In dispute
among the larger companies will, in the
opinion OF the Home officers, he referred
to a general committee for set ament.
The smaller companies may take advantage
of technicalities, but the larger companies,
it was said, undoubtedly will not contest
anv claim unless they have absolute proof
that the building went down from the
earthquake shock before fire touched il.
The thing for the companies to do. =
said one Of the Home officers, lis to pay
up and then get the reinsurance"
The Ohio State Insurance Department
has already taken steps to ascertain the
condition of the fire companies affected
by the San Francisco calamity, and tie
commissioners Of 2Jhcr sta,"S Tl'i M
department has written to each Of the
companies enclosing a blank which is to
be filed out, sworn TO and returned. The
blank calls for the aggregate losses in
Cured by the company IN the san Fran
cisco confagration and In other fires in
California on the same date. The same
course was followed by the Insurance
Commissioner after the Baltimore fire