The San Francisco call., 1906-06-26

mlttee then submitted the following re-
port:
COMMITTEE MAKES REPORT.
The confiagration which recently
swept San Francisco, through the
ma agnitude of the losses thereby Sus-
tained, presents new and unusual con-
ditions in the adjustment and settle
ment of fire insurance losses. The fire
insurance companies have long been
organized for their mutual aid and pro-
lection. and today are acting through
a general adjusting bureau, which rep
resents their common interests in the
present situation.
The same reasons which cause the
fire insurance companies to organize
and act together should urge the pol
lcy-holders to also organize In their
common interests. Such an organiza
ton, 10 be known as the Policy holders
Protective League, it is the purpose of
this meeting to form. under the au-
spices of the five commercial organiza-
tions OF San Francisco-the Merchants
Association of San Francisco, the San
francisco Board of Trade. the Cham Der
Of Commerce of San Francisco. the
Merchants Exchange and the Manu-
facturers' and Producers Association
OF California. The members of these
organizations, consisting of over 1900
nrms, probably comprise the heaviest
! losers in the recent catastrophe
There is now imperative neces-
sItY for such an organization 1t may
serve as the medium of communication
surance companies questions of
great Importance to San Francisco,
such as the early and prompt adjust
ment of all losses and the full pay
ment by solvent companies of all losses
insured. Such an organization should
approach and handle the questions
which may come before ii with tact.
fairness and good feeling. but also with
hrmness and determination.
Numerous insurance companies that
claim TO be solvent have expressed
IN tar HsarNe l.
100 cents on the dollar of their true
and Just Indebtedness. Solvent COM
panies thus attempting to escape their
Just debts may be more effectively
dealt with through an organization
than by the individual policy holder.
CONDITION OF COMPANIES.
There may be practical difficulties
which render it impossible for many
companies to realize speedily upon
their securities. Such companies. how
promptly in cash will find a large num-
Der OF policy holders quite ready to
receive payment in installments. 1t
must be conceded that an insurance
company has the right to refuse to pay
out money except upon losses actually
sustained and insured.
All of these questions must be con-
sidered fairly, but ii will not be con-
ceded that solvent companies have the
right TO pay less than 100 cents on the
dollar on adjusted losses. Neither is
some insurance companies take-that
because some buildings in San Fran
cisco were damaged by earthquake
that therefore every policv-holder
whether injured by earthquake or not,
must accept less than is Justly due him.
Companies which seek to force or ef-
feet compromise of their just obliga-
uons through petty tactics or unneces-
sary delay, through failure to meet
with the assured and adjust his loss
and through claims of exemption from
a n NV
earthquake. unsupported by the facts,
are companies whose business methods
should be advertised to the world so
that all who run may read.
How many people In San Francisco
know upon what basis fire insurance
companies settled their losses in the
Baltimore fire of two years ago? Very
few. But it is our purpose and inten-
tion that the people of Europe and
America shall know how companies
settle their losses here, that they may
be able to distinguish the good from
the bad.
For these reasons we recommend the
formation Of a Policy holders Protec-
tive Lea que. composed of such persons
insurance at the time of the recent con-
fla agration or who now or may here
agement and control of such an or
ganization should be effected under the
auspices of the five commercial or
ganizations already named through the
representing these organizations.
In accordance with these ideas reso-
lutions have been prepared for the or
ganiZation of such a league and upon
thes subscription cards which were dis
tributed al the door all policy holders
are requested to place their names. ad-
carried by them, and hand same to the
secretary.
RESOLUTIONS ARE READ.
This report was read by Frank ].
Symmes,. chairman of the committee,
who also submitted the resolutions
considered TO be advisable by the COM
mittee, in which plan of organiza-
ton and general details for the con-
duct of the organization were defined.
The resolutions are, in full, as follows:
Whereas, The magnitude of the
of April Is, 10 and 20, 1906, in San
Francisco presents new and unusual
conditions in the adjustment and set
tlement of fire losses: and
Whereas, To meet these new and un-
usual conditions now prevailing the va
rious fire insurance companies inter
Francisco, with few exceptions. have
found IL necessary and advisa BILE to CO.
operate. and to that end have estab-
lished a general adjusting bureau in
their common interests and for their
mutual protection; and
Whereas, 1t appears advisable that
the pOlicy-hOlderS should likewise or
ganize for the more careful and eff
cient protection of their several COM
mon interests. and particularly to Sc
cure an early adjustment of their losses
and a full payment OF the actual loss
sustained; and
Whereas, We have been reliably in
formed that il is the intention OF GER
tain fire insurance companies doing
business in San Francisco to discount
just losses of policy holders who were
sufferers in the recent San Francisco
disaster; now therefore. to accomplish
the proper safeguarding of the inter-
ests of said policy-holders, be ii
RAISING OF FUNDS.
Resolved. That we, fire insurance
policy holders and sufferers by the re-
cent San Francisco conflagration. do
hereby pledge ourselves to become
members of a permanent organization
to be known the Policy holders
Protective League to be managed and
controlled under the auspices of the
following San Francisco commercial
bodies. namely: The Merchants Asso-
citation of San Francisco, the San
Francisco Board of Trade. the Chamber
of Commerce OF San Francisco, the
Merchants' Exchange and the Manu-
facturers' and Producers Association
of California; and be 1t further
Resolved, That we hereby pledge our
selves to contribute to fund to carry
out the purposes of the league a sum
total not to exceed ] per cent of the