The San Francisco call., 1906-06-24
WHERE Thu:
PHEN|X STANDS
The Phenix Insurance
Company of Brook
lyn Makes Clear
It's Position in the Pres
ent Situation Through
a Letter Addressed
To Coast Agents by Mr..
]. H. Lenehan, Gene
raj Agent of the
Company - Interesting
Reading to the
Public.
OAKLAND, June q, 1906.
To Our AGENTS


To Our Agents
serious misunderstanding has aris-
en- regarding the attitude of number
of the companies interested in the San
Francisco losses, and l deem 1T advis-
able to inform you as to the position
occupied by many of them, and par
ticularly as to that of the Phenix.
The terrible earthquake of April IS,
which wrecked and damaged innumer-
able buildings and their contents, de-
stroyed the water mains of the city
and rendered useless the heretofore
effective Fire Department, was fol-
lowed by confla grafton unparalleled
as to area and property values in
volved.
The company's policies do not cover
loss or damage by earthquake and the
injection of this new element into the
question. as fire followed and COM
pleted the destruction, has raised an
issue not easily disposed, of. Where
policies covered buildings and or their
contents which had certainly fallen
before the fire, or which had been so
damaged as to void the insurance.
claims under such policies cannot be
recognized.
Where the damage by earthquake
was not of sufficient magnitude to rem
der the insurance void or where build
ings and or their contents were de-
stroyed by civil and or military author
ity before the fire, or where books and
records We're destroyed so that IT is
impossible to supply the proofs of
value required under the contract, and
for other good reasons. it seemed right
and just that if settlements were had
under policies not absolutely void
reasonable deduction should be made
from the face of the policies. Many
companies expressed willingness to
dispose of such claims by immediate
settlements for cash, after deducting
25 per cent from the policy If the same
were generally adopted. 1t is needless
to say that such settlement was not
obligatory on the assured. He could
elect to avail himself of it or await an
adjustment which naturally would be
long and tedious because of the many
complications arising from the diff
Guilty of separating losses for which
companies were liable from those ex
empted in the policy contract, because
of the many varying forms of policy
contracts and the loss of essential rec
ords, both by the companies and the
assured.
The proposition appealed to many
business men and bankers who saw in
1t the means for prompt disposal of
these claims on cash basis and which
meant much to the policy holders in
san TTdnClSCO. Ills TENTATIVE pldIi,
however did not meet with the ap-
proval of some companies, several of
whom saw in its opposition an oppor-
tunity to secure a certain amount of
advertising, and nothing has been left
undone in that direction. / believe this
plan offered needed relief to stricken
community, and if generally adopted
would have provided the funds for inn
mediate restoration of much of the
ha c
not secured sufficient Endorsement to
render it effective, and the Phenix will
proceed in the adjustment of it's own
losses, giving to each the careful in
vestigation made imperative by rea-
son of the presence of a new and eX-
traordinary condition, and necessarily
calling for closest scrutiny. We owe
this to the company and it's stockhold-
ers as well as policy holders every
where; to you and your patrons who
are depending on having reliable in
surance for protection against legiti-
mate loss. and to the business world.
But the Phenix will carry out the orig
inal proposition and pay at once in
cash any claim for which it is legally
liable on the basis of reasonable COM
promise. II desired, to avoid the delay
incident to adjustment on account of
complications involved.
The Phenix Insurance Company
needs no champion to defend its name
before the people of this country. Its
record of ffty-three years operations
and honorable discharge of obligations
in all of the great connagrations since
its organization will be fully main
tained. 1t will be found In this in
stance as heretofore-fair and upright
in its dealings with claimants, and
prompt and thorough in meeting IFS
legitimate liability; position Which
will commend it as it has in the past
to the consideration of honorable men.
Yours very truly,
]. H. LENEHAN,
General Agent.