The San Francisco call., 1906-07-03
RECEIVER SMITH
AROUSES WRATH
Traders Clients Accuse
Him Of Attempt to
Defeat Them.

Another move on the part of Re-
ceiver Byron l.. Smith and the fright
ened stockholders of the defunct Trad
ers' Fire Insurance Company of Chi
cago to defraud that company's policy
holders was, according to the state
ments of several policy holders, begun
yesterday morning At that time no.
tices were sent to each of the Traders
policy holders informing them that an
office had been opened in Oakland and
that their losses would be Immediately
adjusted there. These notices were
signed by Receiver Smith and Adjuster
L. A. Moore.
The policy holders wrathfully de-
clare that this is an attempt on the
part of Smith, working hand in hand
with the stockholders of the Traders,
to break up their recently formed pro-
tective corporation. By means of this
organization the Traders clients In
tend bringing suit in the Illinois courts
against the company and its stock
holders. They intend to attack the
writ dissolving the insurance company
on the ground that 1t never was in
solvent. They have already alleged
that the move to secure the decree of
dissolution was started by the unlaw-
full connivance of Smith and the stock
holders, the latter fearing that they
San Francisco losses if the company
was not quickly dissolved.
WARY OF THE OFFER.
The movement to adjust the losses is
merely. an attempt, In the eyes of the
policy holders, to tear them away from
their organization. They say that the
Traders officials believe that by offer
ing small settlement the policy
holders will surrender their rights. It
is probable that the organization will
seek to procure an injunction prevent
ing the receiver from settling any
losses until the suits soon to be filed
in the Illinois courts are decided
This scheme on the part of the de-
funct Traders" said John S. Partridge
secretary of the Incorporated policy
holders, yesterday, "is merely an at
tempt to separate the policy holders,
deal with single cases and thus beat
those who are trying to get all that is
due them. The receiver and the old
stockholders of the Traders evidently
think that the organized policy hold
ers will flock over 70 take what will
be offered them. These men from Chi
cago will find that we do not act that
way out here. I'VE believe that we, the
policy holders. will be able to get
good settlement through the courts and
we will stick by the organization by
which this fair settlement can be made
do not believe this Chicago made
scheme will work"
GORDON DISCLAIMs KNOWLEDGE.
Harry Gordon of Gordon & Frazer,
former agents for the Traders Insur-
ance Company, who is now assisting
Adjuster L. A Moore in handling the
affairs of the bankrupt corporation.
said at his office in the Canning block
in Oakland yesterday that he had re-
ceived no notice of any letter having
been sent to the San Francisco policy
holders Of the Traders by Receiver
Smith.
Gordon said he had no advices con-
corning settlements or adjustments He
explained that anything looking to-
ward settlement would come from Chi
cago, and could not be accomplished
without an order of court, the COM
pany being under the courts jurisdic-
tion after receiver was appointed.
The city department of the Traders
has been moved to 9 Front street the
country department remaining In oak
land.