The San Francisco call., 1906-08-26
Scheme to Pay
Loss in Full
Financing to Procure
for Creditors the
Best Results.

Every policy holder Of the Fireman's
Fund Insurance Company and its allied
corporations will be asked TO take one
half of his claim against the company
in cash and one-half in stock Of the
company, the par value OF which stock
is 500 share. to be taken at the rate
of $500 share. This has been made
known to the policy holders by the offi-
GERS OF the company by the issuance of
printed circular, copies Of which have
been distributed among the parties in
interest. The conditions of, the circu-
lar are as follows:
The undersigned creditors of the
Fireman's Fund Insurance Company
and of the Home Fire and Marine In
surance Company, holding policies OF
said corporations or Of the Pacihc Un-
derwriters, upon which we have made
proofs of fire loss in the amounts set
opposite our respective names, do
hereby agree with the Fireman's Fund
cept payment in full of our said claims
in the following manner. to wit:
One-half thereof in cash in United
States gold coin, the remaining one
paid shares of stock in the Fireman's
Fund Insurance Company, par value
S1oO, taken at a valuation OF $500
share, to be issued to each subscriber
or his order.
This agreement shall be effectual and
binding upon each of us when the cred
itors holding at least one-half of the
existing fire loss claims. against the
above named corporations shall have
signed this agreement prior TO Sep
tember Is. 1906. and subject TO the fol-
1. That the Firemans Fund Insur-
ance Company shall assess its share
holders three hundred (s30o) dollars
per share to raise in cash sufficient
money to enable 1t to continue in bust
ness under the laws of California
with an unimpaired capital of at least
one million (s1.o00.O00) dollars.
2. That it shall acquire by transfer
all the property. good will and out
standing business of the Fireman's
Fund Insurance Corporation.
8. That both of said conditions shall
have been fulfilled and said payments
of money and shares completed prior
TO January l, 1907.
A. That this agreement is based upon
the estimate of the Firemans Fund In
surance Company that the gross losses
of said companies in the San Fran
cisco confagration aggregate s11,200.-
900, with estimated collectible reinsur-
ance of s2,500,000, and that any reduc-
tion of the amount of said gross claims
when paid or any increase in collected
reinsurance over said estimate shall
be divided among the signers of this
agreement in proportion to the amount
of their respective claims on or before
December 81, 1908; provided such di-
vision shall not impair the capital
stock of the Ffreman's Fund Insurance
Company.
This is the plan that has been ap
proved by the Policy Holders League.
All policy holders stand on the same
plane. There is to be no settlement in
cash of any class of claims in prefer
ence to any other. Under this arrange
ment the capital stock will be $500, 900
and the reserve s2.50O.O 900. The amount
of $4,0o0,000 must be kept on hand to
maintain solvency. The man outside
of the company who takes the stock
gets it with a tangible asset back of it,
As hoped by the projectors of the
scheme, the stockholders will get all
their money in a few years in addition
to drawing dividends in the meantime.
In other words, as explained by a party
in interest. the debt will pay itself out.
The new corporation, the Firemen's
Fund Insurance Corporation, will drop
back into the Fireman's Fund Insurance
saved. 1t Is set forth that under any
get more than so cents on the dollar.
If the plan goes through the policy
holders will receive a payment of 25
cents on the dollar at once. Fifty per
cent will be sure. in cash, and the re-
mainder will be equally sure if no great
disaster comes to defeat. expectations.
The officers of the company have been
getting the money to pay the so per
cent dividend. Old holders of stock
will stand an assessment of $500
share. Many large losers by fire have
agreed to take their payments on the
plan outlined. one-half cash and one
half in stock.