The San Francisco call., 1906-07-01
DEFINES Irs POSITION.

The North German Fire Insurance
Company Of Hamburg has sent state-
ment 10 ". ]. HerFin. representing the
Policy Holders Association OF that
company. which is as follows:
This company has so far neither ad-
rnitted nor denied general liability for
claims arising cut Of the San Francisoo
confTagration in April the company not
vet having defined its attitude In vie~
Of certain provisions and exemptions
contained IN its policies.
But aside from the cOnsidera ton o.
the. contract on It's. merits there are
they may NOT enter directly into the
contracts with the policy-holders. are
of vital importance 10 them and 20 the
company, and must control. more ef
less. the eonpany.s attitude toward ifE
polfey-hoIders. Some of these may De-
briefly stated.
Following the custom OF most Euro-
pean FIRE offees. the North German hR8
a considerable part of its San Franct9-
co liability reinsured with European
reinsuring Offices BY those contracts
the reinsuFing company IS only eopl-
PEELED to pcy those claims FOR which
the North German is legally liable. and
North German that they would not el1e
teTtain any reinsurance claims for lib
other h than those Strictly wirhia ne ne
contract. AS these reinsurance con-
tracts are a part of the assets OF t6e
company on which they must rely 70
ment 10 their insured II is obvious thaf
any action OF the part Of the Norta
preciate these assets would res1lt "a
great loss. not only 70 the coTpany,
But TO the policy holders.
company is precisely that OF Eler-
chant wte relies on the collection Of
his book accounts 20 pay part. Of the
through legal complications. that ac-
knowl dgment, Of these claims before
maturity and legal determination
would cancel bis debtors accounts
a Side light on this action Of the re-
Insurers sacws strong ground for
their action. as a. company might make
vertisennent and with an eve 20 future
business. o1Lt no benefit would accrue
70 the Tesnsurers in the way OF repa-
tatiou, and they might or might not
participate in the new business. III
The question is asked. Why rein-
suTance9 The answer Is. Because there
Francisco risk directly FurthermoTe.
there Is no doubt that the sJockhoidefs
would hold the directors personally re-
Side Of the contract. This company hss
treated and viii continue TO treat all of
It's policy-hoIders an the sane manneR
and with the same consideration 0f
personal courtesy and otherwise. as IN
ordinary times, and has assisted. ct
great expense to itself. a large numbeE
and has given them such information
as might be OF use TO place them in 4
position for the legal enforcement %
such rights as they may possess il such
action should be necessary
representative OF the companF
from Hamburg r Stinulann has been
in San Francisco for the last few
weeks. he is returning shortly 20 make
verbal report OF the circumstances
Ii Is to be hoped that some arrangs-
ynent may be made BY which the DIM
cuities referred TO will be overcome n
any event. some decision will be reach-
ed IN July
: The Individual Underwriters COM
pany of New York gives notice that Il
has paid in full loss of more than
100000 10 the Dunham- -Carrf gan Hay
den COMPANY. no question OF earth
quake damage being raised