New-York tribune., 1906-04-24
ABLE TO PAY LOSSES.
SO SAY INSURANCE MEN.
BelieUe Frisco Fire VIII Wreck
Ferc Com Ddnies.


this city yesterday to the effect several Amer
lean fire insurance companies would have 10 go
Of business on account of their losses by the San
Francisco conhagration. 1t was even said that
several companies expected to go into Iquida-
ton Immediately because IL would be inpossibIe
for them to meet the losses.
Up to the close of business. however. no com
pany had admitted inability to pay losses. and Of
hcias of some Of the companies mentioned in the
reports as being crippled declared that the losses
would be paid in fun and that the companies would
60 on 1t was said that in cases the stock
holders would make up the deficiencies by assess
ments.
officials of OF the fire insurance companies
were talking about raising rates. but there was no
definite movement to such an end started. Tt was
said that 1t might be necessary TO have a uniform
raise In insurance rates provide for such emer-
gencies the San Francisco disaster. Foreign
companies might withdraw from the United States
it said. If the rates were not large enough TO
reimburse the companies FOR such tremendous
losses those incurred by the conHsgrations I'm
Chicago. Boston. Baltimore and San Francisco
Fire insurance officials in this city received many
dispatches from their agents at San Francisco yes
terday. but the messages did not give much in
formation regarding losses. In most the
agents reported that all the maps and other rec
ords of insurance the agencies in vaults
which could not be reached account Of the fire.
in the ruins OF buildings.
In the absence of more definite information than
was on file in the New York Offices few insurance
would make estimates OF the losses OF the
companies yesterday The belief seemed gain
ing hqf rhe fnz1I
would not reach the high estimates Of last week.
and probably would be below s1250oooo
vice-President Correa of the Home Insurance.
Company said he did not believe a report from San
Francisco. that the Insurance companies would
not have pay losses buildings which were
blown down with dynamite in the efforts TO chscc
the progress OF the conhagration- He said tho
California law made the insurance companies
sponsibe for the losses in such cases, adding:
1t would always be proved conclusively that the
it was sure to be burned anyhow. and that by
blowing it out Of the way suddenly there would pc
some chance of saving other property IL may be
possible that the insurance companies which pay
ouentiv recover the money from the m1niciDaiity
although even that is doubtful
prise 1t will continue Just the same after the
Sanv n cannet % 0sseS & hse bad 9e b pb sen
merit. If a company intends 10 remain IN business
than % to qaiboe and prosaby be beaten IA the end
All the new buildings in San Francisco are 10 be
insured. All those which not burned will
have TO be reinsured when their policies lapse
nberai i in Weir their treatment Of patrons and which
tried 70 sgIr out & Of psying onX bSs WaGh at thsK X
the big companies will pay up promptly as the
number of little companies forced out OF business.
But in their cases it would be cheaper in the
the courts with the facts and the sentiment against
them.
Elijah r. Kennedy. of the firm of Weed & Ken
nedy. said:
There is really very little known to-day
concerning the insurance companies and their
Of the Firemen's Fund by sending telegram to
Sacramento. succeeded in getting 1t through ana ana
conpany's losses he conveyed the strongest pos
fGIe thng n f and % 90 ' on This has been Wen re-
ceIved here. because of the character Of MI put
ton the president and II affords good deal OF re-
lief because the Firemen's Fund had an extremely
large business in San Francisco.
In all estimates Of the amount the companies had
at risk that have been been so t fs 2g6Sned [nGSs
bsf Ui s was tSe probable average rate one matter
S been @ left out of sight and that Is that many
of the companies whose premium incomes are thus
here in the East and more with Euro2ean com
poIeT po becomes very interesting question as to
whether the reinsuring companies will be able 70
cinde the losses OF these rensurers;
Undoubtedy many important fSa t ouqngs qe 5sran
companies are not liable for the damage oy tne
subseuuert fires among the ruins. There Is, now
ever another condition that have not seen men
toned In San Francisco It is not customary 70
REQUIRE any certain amount OF insurance retaIVo
to the value 10 be carried by insured parties me
Co-insurance clause warranty or ~ per cent OF
insurance 10 value, such is common II New
York Is almost unknown IN San Francisco. IL Will.
therefore undoubtedly be found that most business
houses had much less insurance tnan tnsy nso
value OF property so that even II some OF thelrt
property Is saved the insurance companies may
have 10 nav total losses under their policies.
some OF the companies are reminding the punnc
that thev do business under the safe4y Iund law
of New York or OF some other state BY u1ls Jaw.
which was enacted shortly after the great Cnicago
fire companies may deposit certain runds VIII tns
state government which. If The company Is wiped
t ~ eyistence In great conhagratOn. not
Available for the payment OF losses IN such connt
grafton but remain funds for the protecuon OF
Other DoIicyholders not burend out n the great
ARE There are two sides 10 the advantages or THIS
sI-sten1 II any company doing business under "
bSas had losses IN San Francisco greater than us
aJuable funds its unfortunate pohcyholders In san
E,ra ancisco will much prefer that such eonlpanys
a5S-sr-Ises assets may be applied to the payment
~ losses already incurred and not held ror the
Tavmsnt OF losses that may or may not suose-
99uentIy occur. My view Is thac the polIcy-
SoI5ers not burned out created pre,errec creo-
itors upon the cOmpanys assets 70 the extent Ina-
n has them deposited under rhe saIety Ioho-
rta Continental Insurance Company issued a CIR
c,,Iar 20 its agents declaring: The Continental
Gould nav it's San Francisco losses in full to-day
a,5 ain show a net surplus IN excess OF SAOo1e0~