The San Francisco call., 1906-06-03

the situation in the fire underwriters
adjusting bureau become that serious
effort toward conciliation among the
conflicting insurance interests has been
undertaken At the instance of the
opposing forces a conference committee
has been appointed by Chairman G. w.
Spencer to meet and try to arrive at a
settlement of the differences among the
companies This is the last move. it is
feared by the insurance men. before
the open rupture which will drive the
whole fire insurance conditions into
chaos unless the representatives, OF
many of the companies shall yield in
their present position of delay
The chief points which are being ar
gued and which retard movement
toward settlement of losses are, first,
the reinsurance muddle; second. the
earthquake clause; third. general and
specific interpretations to be put upon
the many different provisions of poll
eies touching Liabilities.
TOO EARLY TO CRITICISE.
Such of the companies as are holding
out against settlement maintain that
they are doing so in protection of their
legal rights. the money of their stock
holders being involved. Many of them,
il is only fair and just to say, are, so
far as surface conditions indicate, TAX
ing q defensible position in regard to
ordering payment. They appear to be
honestly waiting for final decisions
from their advisers. The task of seq
regatiug the good from the bad is
beyond present possibilities, for the
reason that a definite position has not
yet been taken.
To the end that the waiting corpo-
rations shall speedily arrive at a deci-
sion and that the work OF settlement
shall progress. companies which are
now paying where they are individ-
u2lly concerned, and are ready TO cd
just and settle where other companies
are also involved with them, are deter
mined to force the issue in the Fire
Underwriters Adjusting Bureau.
Practically as a last resort the con-
ference committee of factions in the
bureau has been called together This
committee will take up the various
questions of dispute and will try to re-
port plan which viii enable the COM
panies to proceed with the adjustment
of the big losses-losses which have
been apportioned to the sub-commit-
tees of the bureau These losses include
such as are carried by six or more
companies.
POLICY-HoLDER THE SUFFERER.
Policy-holders are in danger of be
ing sufferers from this warfare among
the insurance companies. For example.
A holds a policy in BIS company. B
has reinsured the risk in c $ company.
The policy-holder tries to settle with
3, and may be willing and ready to
settle, but fntervenes and announces
that he will not accept the terms of
settlement-thatt the extension of time.
the earthquake clause and a score of
other provisions will be contested. b
therefore must settle at his own risk
or he must consider Cs objection if
ne desires to protect his own company.
In short, If b carries $4,000 on a
risk he must take q chance of paying
the entire loss, whereas if he heeds c
he might hold liable for that part
of the risk which had underwritten.
And il is this battle between insur-
ing and reinsuring concerns which is
dangerous to the policy holder.
1t is one of the disclosures of the
insurance business which the policy
holder has found seriously interferes
with his chance Of obtaining a prompt
settlement of his loss. 1t is one of the
most important of the numerous and
complex situations which have arisen
to retard the adjustment of the San
Francisco losses.
DETECTIVES AT WORK.
That the insurance companies are
fortifying themselves and preparing to
take advantage of every section of
their respective policies that might be
construed in their favor, and that the
earthquake damage will figure in the
consideration of many of the big losses
in the business section of San Francis
co. is shown in the establishment of q
secret information bureau in charge of
Colonel Thomas Taylor that is collect
ing evidence relative to the conditions
of buildings right after the great tenn
blor of April Is and before the struc-
lures were laid low by the flames This
evidence is being obtained from per-
sons who observed the state of build
ings prior to the time the flames came
upon them.
Colonel Taylor has a staff of assist
ants whose work is something on the
order of detectives. They run down
who lived in certain districts of the
city, and who, by reason of that fact
or otherwise, are supposed to have
knowledge OF the conditions of certain
buildings before and after the earth
quake.
CONFIDENTIAL REPORTS MADE
AS fast as the evidence relative to
conditions of different buildings before
and after the earthquake and fire is
accumulated 1T is arranged for the in
spection of accredited representatives
of insurance companies interested in
the losses on the property. Confden-
tlal bulletins, giving the block book
locations of destroyed or damaged
properties about which information
has been obtained are prepared and
posed by Secretary f. F. Mohrhardt of
the Fire Underwriters Adjusting Bu-
feau at Reed Hall in Oakland and at
the headquarters of the general ad-
lusting committee of fifteen in the
Ferry building. Members of the bu-
reau and accredited representatives of
companies concerned are given notice
IN the bulletins that they may have