The San Francisco call., 1906-08-02

good, Commissioner Wolf will COM
municate with the Attorney General,
who. within twenty days after re-
ceiving the communication, is required
to begin an action in the name Of the
people of the State and ask for an
order requiring cause 10 be shown why
the business should not be closed.
If it should then appear to the court
that the corporations are insolvept and
that the interests of the public so re-
quire, a decree must be issued. ordering
a dissolution and the winding up of the
affairs and a distribution of the assets
of the corporation.
Section Sol of the Civil Code pro-
vides that ''in the event of any addi-
tional losses occurring upon new risks
taken after the expiration of the
period limited by the commissioners In
the reduisition and before the deficiency
has been filled up, the directors are In
dividually liable to the extent thereof.
SMALL COMPANY ABSORBED.
Neither the Fireman's Fund Insur-
ance Company nor the Home Fire and
Marine Insurance Company is taking
any new business. Commissioner Wolf
said last evening that he was of the
opinion that the personal liability of
the directors Of the two companies was
not impaired by the action in view.
The history of the Fireman's Fund
in connection with the Home Fire and
Marine Insurance Company is long. The
Home Fire and Marine was originally
the Home Mutual Fire Insurance Com
pany and was organized In 1864. 1t
was taken over by the Fjreman's Fund
Company by purchase. The Home Fire
and Marine company has a capital
stock of $500, 900, and it's assets at the
time of making its latest report were
placed at s1,S22,s52.
The Firemans Fund had capital
stock of $1,000 600, of which more than
$500, 600 is paid in. and assets Of more
than $4,000, O00. The Fireman's Fund
is one of the oldest, as it has been one
of the strongest, of California cor
porations, and has always had a
splendid record 1t was organized on
June 1S, 1863.
After the fire in April the manage
ment of the Fireman's Fund supposed
that the Home Fire and Marine would
be able to pull through and continue
business, and loaned 100000 to meet
it's obligation The situation grew
worse and the Firemans Fund rein
sured it's risks in force to the amount
Of s372,5S4,750 with the new Firemen' S
Fund Insurance Corporation The new
corporation has the same officers and
ance Company. The new corporation
was given a name as much like that
of the parent organization as possible
that II might avail itself OF the ad-
vertising and name that had been a
valuable asset of the Fireman's Fund.
Before deciding to act Insurance
Commissioner Wolf conferred frequent
ly with Attorney General Webb and
Assistant Attorney General Sturte-
want Yesterday afternoon the Insur-
ance Commissioner talked with the OFF,
GERS of the Firemans Fund and Home
Fire and Marine Insurance Company,
and told them of the decision that he
had reached.
DUTToN MAKES STATEMENT.
President w. ]. Dutton has prepared
the following written statement fol
publication in The Call:
Commissioner Wolf has already ad-
vised us that he proposes to serve no.
tice on US TO levy an assessment TO make
good the capital of the old Fireman's
Fund Insurance Company, and in view