The San Francisco call., 1906-08-07
Sixty Days Of Grace Given
Insurance Companies
Soon to Expire.
MUST PAY OR GET OUT

- REAT sums of money will be
a due policy-holders in this city
Y u one week from next Saturday
on account of fire losses. Then
the sixty days allowed 20 the companies
will expire in all instances where proofs
of loss were promptly filed within sixty
days after the fire of April Is. AT no
time since the fire has any date been
considered with as much interest by the
insured and the underwriters alike as
August 1S.
One hundred and sixty-three fire In
surance companies. exclusive of many
reinsurance companies in Europe, have
confessed to a gross insurance in San
Franciscbo amounting to s222,S63,307.
They have also, on the basis of such
figures as they have made, claimed to
have actual losses of $132,S23,000 in the
San Francisco fire. The actual loss,
as reported by the companies, knocks
off S33,814,46S for salvage and counts
in S65,246.771 as reinsurance to be
recovered both of which amounts.
glibly sworn to by affidavit makers, are
totally unreliable
SALVAGE OVERESTIMATED.
This is made clear by carefully as
certained facts. In more than $50 of
the great individual losses by firms,
corporations or individuals that have
been adjusted by the bureau of the
Board of Fire Underwriters in this
city the actual salvage agreed upon by
the insurance companies that were rep
resented on the loss committees
amounts to less than s5.000,0o0. These
losses the class buildings
the large warehouses, the jewelers.
stocks of goods that were protected by
vaults and iron stocks that were in
destructible If damaged.
There are not more than 1900 of such
losses to be adjusted according to the
best estimates. That provides for sal
wage in total of only s11. $4,000 for all
the large losses in which six or more
companies are involved.
Frame dwellings and their contents
furnished comparatively little salvage.
The buildings were practically COM
plete losses and the furnishings of the
houses, jewelry and other articles
would be estimated high in the salvage
at S4,000,000, making the salvage in
all sl5,00O,000 as actually ascertained,
which is a very liberal estimate, as
against the s33.oo0,o00 and more
claimed by the insurance companies
that have made statements calculated
to hold Eastern business.
SEVERAL MILLIONS DUE.
The shrinkage of s18.00o.0 200 in this
item is more than duplicated in the
falling off in reinsurance money to be
actually recovered from the large sum
of $65. 900 in round figures claimed
by the companies as a probability.
The aggregate surplus of the COM
panies doing business in San Francisco
Nryoz Of hd nf he lQC CT 70
report but $209, ,000, 900 in round figures,
$13,0000 900 less than the gross insur-
ance carried in San Francisco and but
$4,000, 900 more than the acknowledged
net loss. These figures are derived
from the sworn statements made to the
insurance department of the State of
New York.
these figures is shown to be of great
interest. Many millions of dollars
have been paid out by the good COM
panies in settlement of their losses,
but not half the money that is due has
been given to policy holders. Many
more millions are to be collected or
withheld on claims for losses than have
yet gone to fire losers.
VIEW OF INSURANCE PRESS.
This is the situation that is presented
to the Policy holders League and to
other organizations of policy holders.
1t is a stupendous proposition. The
Insurance Press. published in New
York, editorially makes the following
admissions, speaking for the insurance
companies by which it is supported:
A fair estimate of the total net
claims against insurers, after salvage
is deducted, is something in excess Of
Companies of the y State Of New YORK So
had net surplus OF about $4,000, 900
on January l, 1906. A full one-third
paid to San Francisco oiicy-hoiders,
Eighty-four insurance companies of
other States had a combined capital
and surplus on the same date of si04,-
100000. These companies must pay at
least $50, 900 to San francisco, one
half OF their entire loss-paying ability
Thirty-two United States branches of
foreign companies had on deposit capt.
tai and net surplus In this country on
January jar u6dy / amounting to about $685.
100000; These companies must pay at
least $5S,000,0o0 to San Francisco, or
paying ability six months ago, as rep
resented by money in hand here.
PoLICY-HOLDERs BUSY.
Many companies have. however, sup
piled money with which to meet their
losses. Twenty-six American fire in
surance companies are reported to have
had their entire capitals replaced and
so per cent more out of stockholders
pockets. Other companies outside of
New York are supposed to have pro-
vided $12,760.000 in addition to the
capital they had January /, 1905. The
sum of money that is expected to
come across the Atlantic from British
head Offices is estimated by underwrit-
ers at $52,865,000.
All the organizations of policy-hold-
ers are preparing for arduous work.
The Policy-holders' League, which rep
resents the greatest aggregation of
policy holders, Is daily enrolling mem
bers and has established temporary
quarters. in the Midway building on
Market street.
Twenty-Five companies that have
been doing business in San Francisco
have reinsured or retired from business
since the fire. Forty-two companies