The San Francisco call., 1906-08-26
RHINE & MOSELLE DECIDES. TO QUIT
FIREMENS' FUND PLANS MADE PUBLIC
Wolf Notified
of Retirement
Move Is Seemingly But
a Bluff to Scare
the Losers.

What is supposed TO be a gigantic
bluff has been execuIed by the general
agents and the attorneys of the Rhine
and Moselle Fire Insurance Company
in this city. Notice has been given to
Insurance Commissioner Wolf by the
agents, Syz & Co.. that the company
fornia and that it surrenders its Ii
cense. The attorneys set forth that
the company will turn down all claims
in excess of $500. but will allow so per
cent of the claims on policies of $500
and less.
TO consider small claims and turn
down the big ones is generally taken
to indicate that it is feeling it's way
and trying to intimidate policy holders
into taking the lowest minimum of
cash to sign off. Litigation will GER
tainly follow, as three organizations of
policy holders already have rods in
pickle for the Rhine and Moselle.
These are the Policy Holders League,
the Organized Policy-Holders and the
Rhine and Moselle Policy Holders AS
sociation, of which w. j. Herrin is the
head.
Insurers take the view that the pro-
first with the small losers and then
try to welch in the cases of the larger
ones.
In the four months that have passed
since the fire in this city the Rhine
and Moselle has not paid a dollar to
any San Francisco policy-holder or
given any satisfaction to any one.
Representatives of the company came
to the Pacific Coast from Germany
some time ago to look over the ground.
The company at first denied all liza
bflity for loss, making the earthquake
the pretext for turning down all
claims indiscriminately.
The official representatives from
abroad soon found out that there were
several fires and that the conditions
obtaining We're far from uniform in
that thousands of buildings that were
destroyed by fire were not harmed in
the first instance materially by earth
quake. Correspondence and cable
grams have passed for some weeks.
The official action taken yesterday puts
it beyond all sort of doubt that the
Rhine and Moselle finally elects to be
a welcher
The letter addressed by the attor-
neys of the Rhine and Moselle to In
surance Commissioner Wolf is as fol-
lows:
San Francisco. August %. 1906.
e. Myron Wolf, Esq, Insurance Com
missioner State of California, Union
Trust Building San Francisco:
We have during the past few weeks.
through the representatives here of
the Rhine and Moselle Fire Insurance
Company, been in telegraphic corre-
spondence with the company with rela-
tion to claims against the company
growing out of the confiagration fol-
lowing upon the earthquake of April
is, 1905, and for the purpose of secur-
ing final definite announcement from
the company as to its policy in relation
to these claims.
n n s1ny in f1f nf q
cable from the company announcing
that it will not recognize liability for
any of these claims and directing the
company's local representatives to no
tify you of the withdrawal of the COM
pany from the State. A formal COM
munication from Messrs. Syz & Co.,
surrendering to you the license of the
company and notifying you of this
withdrawal from the State is inclosed
herewith.
In relation to the claims of policy
fagration following upon the earth
quake. the company authorizes the
statement that as to any policy-holder
having no other insurance than in this
company and whose loss does not ex-
coed $500 they will allow so per cent
of the claim, but that as to all other
claims they will refuse payment
In relation to suits which are to be
anticipated as the result of this action
the company cables that it is advised
by German counsel that judgments of
state courts VIII not be recognized in
Germany and that 1t will be unneces-
sary to appear in any suit brought in
these tribunals. As to suits which may
be filed in the United States Circuit
Court other considerations prevail, and
we are authorized as to such suits to
appear for and on behalf of the COM
pany. AS to any such suits where
process is served either upon the agents
of the company or, at the election of
the claimant upon yourself as Insur-
ance Commissioner appearances in due
course will be given from this office
VAN NESS & DENMAN
In withdrawing from business in
California the Rhine and Moselle gen
eral agents write to the Insurance
Commissioner as follows:
We are directed by the Rhine and Mo-
selle Fire Insurance Company to notify
you that the company surrenders its
license heretofore issued to IL by the
Insurance Commissioner authorizing it
to transact fire Insurance business in
this State and to notify you that
State. The paper license hereto
fore issued by the Commissioner to the
company was destroyed in the conf1a-
grafton following upon the earthquake
or Aprfi lS. 1906, and we are therefore
unable TO deliver over this document
TO vou but the company hereby for
mally surrenders said paper and with
draws from business in this State.
The Rhine and Moselle has more than
1000 policy-holders in San Francisco.
whose losses range from small
amounts to large sums.