The San Francisco call., 1906-07-11
COMPANIES SEIZE ON
ANOTHER POINT.
Devise Scheme TO Free All From Liability
Some, Not Having Earthquake Clause, Will Say
That Fallen Chimneys Absolve Them

Consul F. Bopp of Germany, who
promises to be of invaluable aid in
helping the San Francisco policy y-hold-
ers secure the payment of losses for
which German insurance companies are
I liable advises the people not TO ac-
cept any compromises where their
claims are clearly just He says that
not one of the German companies is
/ financially embarrassed, in spite of
declarations to the contrary by some Of
them.
The Consul asks the policy holders 10
act with Judgment and give the COM
panies time to make settlements with
out imperiling their securities. He re-
quests that the assured come to him
when they have differences with the
German companies.
Consul Bopp has given this ad-
vice to F. w Dohrmann, a trustee OF
the Policy holders Protective League.
Dohrmann consulted with Consul Bopp
in regard to the stand taken by sew
eral of the German fire insurance COM
panies.
Bopp saws that where the claim of
the assured is doubtful a compromise
should be accepted. 1t is evident how
ever, that he has not decided upon the
action that should be taken against
the German companies that have re-
fused to admit their liability for losses
because of the protecting earthquake
clause in their policies, for. he gives
no advice on this subject.
USING ANOTHER CLAUSE.
Gustav Gutsch, attorney for Consul
Bopp, declared yesterday that those
German companies which did not have
the protection of the earthquake clause
in their policies were preparing to put
forward a new clause to show that they
are not liable for their San Francisco
losses.
Every fire insurance policy contains
the clause, In case any part OF the
building falls, then the company is not
liable for subsequent loss by fire
While the American courts have de-
cided that ANY part" means amy sub
stantiaI part" the companies claim
that a chimney was in the San Fran
cisco fire a substantial part. They
point to the fire in Hayes Valley,
started by some one using stove
shortly after the earthquake. The
sparks fell from the defective CHM
ney to the roof. They claim that TINS
one example proves that chimney Is
a substantial part of a building.
Under this Interpretation they hold
that they will not be held liable for
any losses in San Francisco. The courts
in this country will probably decide
the matter and their judgment Will
probably be taken as final in Germany.
Prominent attorneys Of this city say
that the courts will declare that the
position of the German companies is
not maintainable.
PLANS OF THE LEAGUE.
F. w. Dohrmann said last evening
that the trustees of the Policy-holders'
League may not be able to make pub
lie the plan proposed for the operations
Of the league inside of a week or ten
days The trustees have been working
steadily about two weeks. The draft
of the plan will be Submitted to the
largest policy-holders for suggestion
and modification as soon as feasible,
he idea being TO make sure of 1nan-
,ial support before the work that will
probably be necessary to improve the
insurance situation is actively begun.
1--WE do not WISH" said Mr.. Dohr-
mann. ito interfere with the promo
ton of corporations or the organiza-
ton of agencies for the collection Of
insurance money. but we think that
policy-holders may find it advisable to
hold off a little while longer until our
plan is ready to be submitted. SO that
we can work in harmony and cooper
ate and centralize our efforts and secure
for the people what is due to them"