The San Francisco call., 1906-06-04
Millions Of Dollars Here,
but Policy-HOIders
Must Wait
Obstruction Methods Of
Some Companies Tie
Up the Coin.
New Complications in the
Insurance Situation
Arise Daily.

The obstruction tactics of a number
OF insurance concerns are delaying pay
ment TO policy holders OF millions of
dollars now lying in the vaults of
Oakland banks to the credit of many
large companies that are striving to
hRd d speedy and satisfactory way TO
pay of their big losses in san Fran
cisco. The money has been flowing in
from the East and Europe. where the
home offices of the companies are
located, during the past week
The raising of technicalities by the
recaicitrant companies relative to the
plan of adjustment and final settle
ment Of losses, the managers of some
OF the large companies say, has delayed
and prevented payment on big San
Francisco risks. Seven hundred and
eighty-one OF the large loss claims. in
which more than six companies are in
NOlved. have been assigned TO adjust
ing boards. the first claims having
been assigned FIVE weeks ago. but thus
Tar not single payment has been
made on any Of these risks
II was generally understood that the
companies interested were to abide by
the findings OF the adjusting board ap-
pointed by the general adjusting COM
-nlittee OF fifteen Of the Fire Under
writers Adjusting Bureau 1t now
develops that such is not the case. and
that unless the report of the adjusting
3 boards is satisfactory TO the managers
OF all OF the companies interested in
Z large loss any manage may reject
the report and proceed to have the loss
adjusted in accordance with his own
views.
SMALL CONCERNS TO BLAME.
1t has been found in the workings of
the general adjusting committee that
frfr1 fC df he
adjusting boards are for the greater
part taken by the representatives of
the smaller companies. These man
ayers are under instructions to scrutin-
lze every adjustment closely, and if
there is any possibility of pairing down
the loss they are obliged to do so.
The practice of some concerns is to
haggle over a small difference in the
adjustment, while other companies ex-
. hibit more generous spirit and an
-nounce that they are willing to accept
the findings and pay dollar for dollar.
Where half q hundred companies are
interested in one loss. as is the case
of the California Wine Association. in
volving 100000, il is easily seen how
the dilatory plan of some of the com
panies impedes the settlement of the
great losses. The managers of the
weaker companies assert that a dollar
10 them is as big as a dollar to the
policy holder. and that they canont af-
ford 10 jeopardize the interests of the
stockholders Of their corporations by
paying out a dollar more than they can
help.
The policy that is to be pursued by
the insurance companies interested in
the loss of the California Wine Asso-
citation in paying their losses. which
have practically been determined, is
awaited with anxious interest by large
policy holders ana by the representa-
tives of the other insurance firms
There is to be meeting of the. mana
gers OF the companies interested in this
loss this week. and the action taken by
the companies toward paying the
claims against them will indicate, it is
believed, the settlement of all of the
other large San Francisco risks that
may be expected.
NEW COMPLICATION ADDED.
The refusal OF one-third of the com
Panies TO sign the notice permitting the
removal OF debris has in some instances
added TO the perplexities and complica-
tions Of which the property-owner is a
victim There sre property y-owners who
held policies in some of the companies
that have agreed TO the removal of de-
bris and who also hold policies in the
companies that have refused to sign
the debris removal notice How such a
property owner is TO act under the cir
cumstances is one of the latest insur-
ance puzzles
H. F. Atwood. chairman of the gem
eral adjusting committee of fifteen. who
was summoned East three weeks ago TO
confer with directors and stockholders
OF the American companies, is expected
70 return to this city Tuesday Atwood
is 10 bring instructions from the home
Offices that viii have an important
bearing on the settlement of San Fran
cisco IRE losses. He is the secretary
Of the Rochester German Insurance
Company of Rochester. N Y. He as
sisted in adjusting the losses of the
Baltimore conhagration and was instru-
mental in the formation of the Fire I'm
derwriters' Adjusting Bureau here six
weeks ago.
The general adjusting committee of
fifteen will meet this morning in the
Ferry building in San Francisco TO as
sign more losses to adjusting boards