The San Francisco call., 1906-10-01


evade their fun liabilities in san Fran
cisco. Ultimately they viii form the
basis Of a blacklist. Business men all
over the world, banks and other insti-
tutions largely concerned in insur-
ance directly or indirectly Will know
al about them. The size Of the San
francisco disaster and vast number Of
buildings consumed supplied so many
tests OF the fairness of the under
writers that in each instance reliable
history has been made
Other companies. some Of them not
any richer than their associates. have
paid their losses practically in full as
adjusted, less, il some instances. a de-
duction OF from 10 per cent for i'm
mediate cash payments. While several
Eastern insurance companies. whose
stockholders are wealthy, are saving
TO their San Francisco policy holders
that they must take what is offered
10 them or the companies will go into
Insolvency, the directors Of the Califor-
MIA Insurance Company OF this city
I n striking contrast have voted to lay
I'VE assessments Of 100 per cent each
upon the capital stock TO pay all claims
In full A number OF Eastern COM
panies are lodging behind the fact that
their stockholders are held not TO be
personally liable beyond a certain
limited amount.
DATA OBTAINED.
From banks and from other reliable
sources Of information data has been
obtained concerning the settlements
made by fire insurance companies do
Ing business in San Francisco. The
banks are IN communication with their
correspondents and the good work of
lnstructing the world. what has hap
pened and what is happening in San
Francisco has been started in this way
Publicity has had a very salutary
effect in persuading quite a group Of
companies TO do better than they orig
lnally intended The Commercial Union
9f London, the Commercial Union of
New York, the Alliance Of London, the
Palatine, the Norwich Union and the
Indemnity announced at first that they
were exempt from liability through
the earthquake clauses in their poll
eies. Since then they have districted
the city and are paying from so cents
10 IS cents on the dollar on losses as
adjusted according to district.
The London and Lancashire, the
Phenix OF Brooklyn. the Royal EX-
thange, the American OF Kew Jersey,
The Fire Association Of Philadelphia,
the Buffalo German. the National
Union, the Caiedonian. the Scotch In
derwriters and the Aachen and
Munich. which have been paying all
the way from IS cents TO 81, are all
wealthy companies. There is no ap
parent financial reason why they
should not pay their claims in full.
CHANGES ARE MADE.
The vote OF q large number of CON-
Danies TO pay but 75 cents on the dollar
on adjusted losses aligned them as six
hitters~ and the thirty-five companies
that stood cut fer full payments were
i-nOwa as the -dollar-for-d COM
hanies. Since then there have been
some changes There arc six bitters"
that have done better than they voted
IN Oakland. IN the old -dollar-for-
5oIlar~ class II is discovered that some
Fcltlements have been made as low as
80 cents. but special reasons" are as
IcneC for this. the merits OF which 4
4annot be passed upon very well here.
.tany settlements By "dollar-for- dol /
lar companies have Deen made at 80
cents
The National OF Hartford started out
six bitter" but has since paid out
about 600, the average rate of
settlements being about 81 per cent as
claimed by the company. The Provi- +
sence Washington. the Federal and the
Westchester have been paying more
-hsn IS per cent. although they were
among the original six bftters.
The worst showing has been made
5y the German companies-the Trans !
atlantic, the North German OF Ham !
K
companies owe TO San Francisco about I
ilz.OOO, 600. They absolutely decline to
make any payments claiming that the
earthquake clause makes them non
liable. To get a dollar IT is necessary I
10 begin individual suits in Europe.
Under the German laws the suits can
aot be assigned. Very likely the Ger
nan companies did not think that any
arge number OF San Francisco fire
osers would undertake the expense /
tnd trouble OF litigation across the
ocean.
WILL SUE IN GERMANY.
The Hibernia Savings Bank has
placed 500, 900 IN policies for collec- 4
don in the hands OF attorneys who will 4
20 TO Germany soon TO begin suits. The 1
sermsnia National Bank and the Cen
raj Trust Company have sent a rep
fesentative to Hamburg, who is in that
sity. Other organizations Of policy 4
holders. among them the Austrian 4
Phoenix, Transatlantic and North Ger
nan Of Hamburg, have appointed 4
counsel who viii soon arrive at Ham I
burg, which viii be the scene of a legal 1
battle soon. The extent OF the pro-
seedings may be judged from the fact 4
hat claims as low in value as $500 have 4
seen placed in the hands Of attorneys 4
iOr collection in Hamburg, and that 4
he average policy value is about $500 4
The Rhine and MOselle Company ap-
,ears 10 be playing a waiting game. 4
I has denied liability on account OF the 4
Earthquake clause. but is nevertheless I
iaying out losses Of $500 and under on 4
he plea OF charity" Two represen-
atives Of the company came 10 this 1
ity from Germany. One has returned /
. Europe and one remains here. The 1
course of the Rhine and Moselle may
le materially affected by the outlook /
n the German courts, when the re-
sIrning representative OF the COM
iany looks the ground over and reports 4
concerning the size Of the preparations
n San Francisco for carrying out the I
litigation In the meantime no hope is /
ield out al the adjusting Office Of the
Rhine and MOselle in this city that any
iettlements or losses other than those
4 $500 and less VIII be made The
respect OF having the facts regarding
he acts OF the company in this city
brought out in public before the Ger
nan courts may affect the attitude not
inly Of the Rhine and Moselle but also
4 the other companies in Germany.
AFTER THE REINSURERS.