The San Francisco call., 1906-09-01
HOT SHOT POURED
INTO FREEP0RT.
German Company Held
Up to It's Fire Losers
as Type of Welcher
PUTNAM REPORTS

Stirred by the arbitrary action of the
German Insurance Company Of Free
port in suspending payments while still
owing $3,500.000 in this city, the pol
ICY holders Of the company have taken
under consideration plan submitted
by a committee to enforce better
treatment and to compel settlement at
100 cents on the dollar. If possible.
For a while the German of Freeport
paid 60 cents on the dollar. and so man
aged TO get claims aggregating $4,000
600 out OF the way by disbursing but
sl,200,000. Then the management gave
out that the company was insolvent
and that 1T could no longer pay even. go
per cent and came to an abrupt halt.
A meeting of the policy holders OF the
German of Freeport was held In Judge
Dunne's. courtroom yesterday afternoon.
Sidney M. Van Wyck. president of the
organization, made some pertinent re-
marks. Then a plan was submitted
by osgood putnam. This provides for
the assignment of the policies for col :
lection to the German of Freeport Pol
icy-Holders' Corporation.
TWO CLAUSES OF PLAN.
Two clauses of the plan contain pro-
visions as follows:
If any bona fide offer of cash In pay
iiCit VI oclLlcuicul Oh SAID policy 1nQt-
vidually shall be made by said insur-
ance company the association agrees
to mail the policy-holder notice thereof
and agrees that said offer wifi be ac-
may In writing direct. provided such
written directions are given in time
Ii accepted there shall first be deducted
from the amount paid the policy-hold-
penses incurred or paid UP to the date
OF payment (said pro rata to be In pro-
portion TO the amount of said polfcy),
and then the attorneys fees herein
equal to the remainder of the amount
collected on said policy shall be paid
oy the, association to the policy holder
:. IN tne event that less than 100000
race value OF policies of said insurance
company shall be assigned then the as
ISOLATION shall have the option to cancel
this agreement at any time within
sixty days from this date on repayinx
to the policy-holder all moneys paid
to the association under this contract
ana on delivering to the policy-h holder
reassignment to the policy-holder. Of
said policy of insurance and returning
to the policy-holder all papers received
from the policyholder in connection
with said policy. Such option may be
exercised. by sending notice to the pol
icy-hoider by mail and having the pa
pers above specified subject to delivery
to the policy-holder, when called for
at the office OF the association at any
ten days after the mailing of such no.
tfce
WOULD MAKE BIG GoUGE.
Mr.. Van Wyck figured out in his re-
marks to the assembled policy-holders
that the German of Freeport, on its
basis of so per cent payments, would
gouge s1,500,00 in profits out of the
fire losers to whom it Is indebted.
Osgood Putnam reported the SUBJ
stance OF an interview he had yester-
day with c. Sumner Best of Alfred Best
& Co.. of New York. publishers of in
surance statistics. Best has been col
1ecting information about the insur-
ance companies doing business in San
Francisco. and he told Putnam that the
German of Freeport was making large
sums of money in the East IN premiums
by reason of the pretense that their
payments in San Francisco to policy
holders were at the rate of 100 cents on
the dollar
The longer we hold out and the bet
ter night we put up the more money we
shall get" said Putnam
+ II. Savage, a policy-holde told
of his experience with the German
Company. He had a policy of $4,000.
In settlement he was offered but $1,000.
(which he refused. Savage announced
his intention to hold out for the full
$4,000. believing that the company is
well able to pay 100 per cent.
Van Wyck read report recently
made by the company, in which it was
set forth that it's assets amounted to
s6,973,oO0, and that lit had s2,435. .4s4.1s
in cash. It's assets were more than
sufficient to pay 100 cents on the dollar
on its San Francisco losses
No action was taken on the plan OF
organization The policy holders were
provided with copies of the commit
tees report to take away and discuss