The San Francisco call., 1906-06-12
To STAND
FOR FULL
PAYMENT
Rich Men Owning Stock
Of Company Not to
Escape.
Victims Of Concern IMAM
imously Vote to
Bring Suit
actics Of Corporation Are
Set Forth at the
Meeting.

The first organized attempt to forcs
fair treatment from an insurance COM
pany having risks in the burned dis
trict of San Francisco will be made BY
he.policy holders OF the Traders In
surance Company OF Chicago. They
will join issues and forni-a corporations
for that express purpose. The policy
holders OF this company week ago
Sternly turned down an informal ofrer
made by Attorney Thomas A Bates OF
lar and TO receipt IN full for their
claims.
The next step was taken at a meet
ing in the synagogue at California and
Webster streets yesterday afternoon
The struggle will now be TO the end
that the policy-holders may secure the
payment of 100 cents on the dollar The
company is In the hands OF a receiver,
but the stockholders are individually
worth millions of dollars and collec-
lively their wealth is a great sum
From the stockholders the holders OF
policies hope and expect to get what is
their due In this hope and expectation
the move of yesterday was made.
Attorneys who are members OF the
policy holders committee estimated
that the individual policy holders and
the attorneys representing policy
holders who were gathered in the meet
ing place yesterday together had claims
aggregating s2,o0o,Ooo The estimate
Of Attorney Bates was that the gross
liabilities of the Traders Insurance.
Company in the burned district In this
city amounted to $5.o00,0 900 In. round
figures and that the net liabilities in
San Francisco are something more
than 100000 Fully two-thirds OF all
the claims, according TO the attorneys
anf al in -
crowd that voted for and applauded
the scheme for joint action.
BATES EFFORT FAILS.
Attorney Bates of Chicago may now
fairly be said to have completely failed
in his effort to coax San Francisco peo-
pie to take what he wished to award
them.
A fight that will be unique in thu
annals of insurance is about to begin
The question whether the Illinois stock
holders, who Incorporated their COM
pany under the laws OF Illinois. are
liable for the debts of the corporation
in California above the amount lof the
capital stock that they paid in Is ons
of the issues TO be tried.
The capital stock, TO recapitulate az
cording to the showing that Attorney
Bates made.t is 100000, and the other
assets. not counting in the reinsurance
reserve. amount TO but $780, ,0o0 leav-
ing a large margin TO the bad in Cali
fornia- In the entire country the show
ing Is that outstanding policies amount
to $3.50. 100000 against the compare
lively slim total of assets in view, all
of which and much more would be ab-
sorbed by giving up to San Francisco
alone what local policies call for.
The visit of Attorney Bates to the
ago only made fuel for fire that has
ragged ever since the company was
placed in the hands OF a receiver When
the attorney was asked to verify the
figures that he had submitted he prom,
ised to do so. At the close of the meet
ing. however. he suddenly announced
that he must go East. He left no writ
serve to give the policy-holders a clear
idea OF the situation
Since then the committee of policy
holders. OF which w. F. Humphrey 10
the chairman. has tried vigorously to
get all the facts relating TO the cor
poration's assets and liabilities and the
status of the large stockholders In the
Traders Company. In this search they
have not been given any data by. the
receiver. Byron J. Smith. or by his rep-
resentative on this coast
MEET ONLY EVASION.
When the third meeting of the policy
holders was called to order yesterday
by MarshsIi Hale the committee could
report noE Abs except that evasion had
met their efforts for enlightenment.
This paved the way effectua1ly for the
adoption of the idea OF forming an In
corporation to be used practically as q
collection agency for the policy holders
A letter that Humphrey received from
Receiver Byron l. Smith. dated at Chi
cago, was read This was as follows:
Mr. William r. Humphrey. Chairman.
1549 Octavia streetN San Francisco:
Dear Sir--I acknowledge receipt OF
your telegram reading Please instruct
Lewis Moore to allow San Francisco
policy holders committee examine rec
ords- Also advise me OF your action.
Mail stockholders names and respective
holdings in Traders Insurance Conn