The San Francisco call., 1906-09-27
POOR SHOWING Of
NORTH GERMAN.
Assets Represented to Con
sist Mainly of Premiums
in the Hands of Agents
EASTERN LOSS Is PAID

A singular story came from New
York yesterday in a letter from Roll
Inns & Rollins. New York attorneys for
the policy-holders in this city of the
North German Fire Insurance Company.
Last week the policy holders instruct
ed W. ]. Herrin to have a search made
in New York to determine whether it
was better for the losers TO accept or
reject twenty-five cents on the dollar
OF their claims, the alternative to ac-
cept being that the company would be
thrown into the hands of a receiver.
Sufficient time has not elapsed since
the policy holders decided that they
would have an investigation TO get
facts at first hand. However, the
stockholders and other interested par
ties in the East have volunteered de-
tails which are easily summed up The
finances Of the company are made to
appear in a very poor light, according
to the figures supplied. but an investi-
cation may show a better state or facts
to exist. If there is no improvement
the settlements of the North German
Of New York will grieve all who have
pinned their faith to that institution
when they paid money TO it for insur-
ance
The officers of the North German Of
New York, so Rollins & Rollins write.
claim that the total losses in San
Francisco were ssso.o0O. The other
losses Of the company are comparative
ly small, not exceeding $4,000 All the
Eastern losses have been paid, while
those in San Francisco have not been
settled, WHICH accounts for the small
I liabilities outside of this city.
ASSETS ARE IN PREMIUMS.
The assets are reported by the Of
-fcers Of the company TO be about $500,
900, which consist largely of premiums
] - rrTr-.-
claim the situation is further compli-
Gated by the question Of reinsurance.
The principal reinsurance. amounting to
about S15o.o00, was placed with the
South German Company. which has re-
fused TO participate in any settlements
The amount of $4,000 in reinsurance
is with the Securities Company of Bal
/ timore. which is in the hands of re-
ceiver.
The additional sum of $4,000 in re-
insurance is with the FrSeport COM
pany. Tentative arrangements" so
reads the report. have been made
with this company German OF Free
port) TO settle the losses made by the
North German of New York The bal
ance of the reinsurance is small and is
held by companies that probably are
good. but which have balances against
the North German of New York.
Some account of events connected
with the history of the North German
Company of New York is furnished by
Rollins & Rollins. According TO this
the company was formed when the North
German of Hamburg was threatened
with adverse legislation in New York
The North German of New York pro-
posed to retire from the United States
and 20 give Up the business of the
North German of New York. which was
a branch of the European company
Loeb & Sons are represented as urg-
ing that this course would be unjust
TO them as general agents. considering
the cost of building up an agency and
an arrangement was made under which
the Loebs purchased a majority Of the
stock Of the North German of New
York and so gained control of the cor
poration-
REINSURED BUSINESS.
Less than a month after the San
Francisco fire, so ii is alleged, namely