The San Francisco call., 1906-08-23
CALUMET OWNERS
HAVE A SCHEME.
Propose to Fire Losers
to Put Up S50O,OOO,
as Compromise Move
LEAGUE NOTIFIED


surance Company of Chicago nave a
proposition to make to the policy
holders in this city who lost py nre
in April This was made pubic at a
meeting of the policy holders yesterday
in Calvary Presbyterian Cnurch. AT
torney Pringle said for the company
that it wished to continue In business
To do this it was proposed by certain
stockholders to raise the sum OF $780,
O0o 10 he distributed in San Francisco
among the fire losers. If this was ac-
cepted it would be understood that the
company would retain its assets and
go on as before.
Attorney Pringle said also that the
assets of the company amounted TO
about s4500O0 and the Liabilities on
account of fire loss in san FRANCISCO
were 81 100000 To avail themselves of
this offer the policy holders would have
to be practically all in on the agree
ment This included not only the pol
icy-holders but also the reinsurfng
companies, to which, according to the
LAWYERS version, the company owes
more than it can collect as reinsurance.
so in fact it is a debtor and the rein
suring companies are it's creditors.
The meeting of the Calumet pollcy-
holders was called by the Policy-hold-
ers' League for the purpose OF ascer-
tanning whether a sufficient number de-
sired the aid of the league in the col
lection of their losses to warrant the
formation of an organization.
INVESTIGATION NECESSARY.
F. w. Dohrmann, chairman of the
meeting, said that it would be neces-
sary to investigate all statements in
behalf of the poicy-holders. There
were $50 Calumet policy holders in san
Francisco who were losers. The busf-
ness of the company was not large.
The Calumet Company had admitted
that it was bankrupt. Representatives
of the Calumet stockholders had ap-
preached the league with proposition.
This was probably a case where some
compromise must be made.
The Calumet people had said that
that they would let the Poiicy-holders
League have possession of all the facts
The question was whether 1t was better.
to take a sum that was offered or to
litigate. The league would do the best
ii could for the policy-holders in ef-
fecting settlement and at a cost not
exceeding / per cent of the face of the
policies If there should be no litigation.
If the matter went into court the costs
were limited to per cent
The Policy holders League could pro-
ceed on this low basis of costs because
the men who were doing the work as
trustees received no compensation and
only aimed to help the policyholders.
Henry Ach, Arthur Barendt and At
torney Boynton of the Organized Pol
icy-holders asked few questions.
which drew out statements by Dohr
mann to the effect that the statements
of the Calumet Company were indefi-
mite but that the league would get the
information that it needed for the
policy holders of the company. All
figures would be verified. Some one
would be sent to Chicago.
POLICIES ARE DISCOUNTED.
Barendt said that six weeks ago the
policy holders of the Calumet were Of
fered rs cents on the dollar, payable in
Sixty days.
Boynton reported that several adjust
ments had been made on the 10 per
cent basis but that there had been no
payments. Some of the people in Chi
cago had written that the losers in
this city ought to receive from so to 75
cents on the dollar Behind the Calumet
as stockholders were some of the rich
est men in Chicago, who were able to
pay 100 cents.
Henry Ach said that the directors
had proposed to put an assessment on
the stock, but the stockholders lived
in sixteen States and the stock was so
scattered that this failed of success.
The 100000 offered to policy holders
would be raised by some of the stock
holders. All that was secured in the
attempt to levy an assessment was
$4,000. The Calumet Company was
about one year old. Its entire capital
and surplus amounted to only s450.000.
Attorney Redman for the Policy
holders League said that the state
ments of insurance companies would
not be accepted as conclusive by the
league. Each would be investigated.
The league had prepared to take up
trouble cases and was looking for
trouble
Andrew Carrigan said that the Pol
icy holders League did not come to
policy holders as pleaders. Those who
needed assistance could come to the
league and get 1t.
Twenty-six policy holders voted to
appoint committee of five to confer
with the League, and also voted to
assign their policies to the league for
collection. There was no opposition to
the plan thus outlined. Altogether
forty Calumet policy-holders were at
the meeting and possibly 200 others
who came to learn the aims and work
of f1a pn1ioU-haIdarS' 40