New-York tribune., 1906-05-04
FOR RIGID CONTRACTS.
INSURANCE MEMS PLAN.
Would Bar Liabilities for Fires
Started by Earthquake.

Some fire insurance men, frightened by the
losses in San Francisco started an agitation
yesterday 70 make the form OF insurance con-
tracts more rigid. A president OF one OF the big
companies was approached by man who wants
the contracts IN the future 70 read that losses
caused not only directly. but indirectly. by
earthquakes cannot be recovered. In other
words, no insurance would be paid on O fire loss
which was caused by a fire started by an earth
quake in some other structure.
'I do not believe there is any chance OF such re-
strictions being placed in contracts" said the
president. ''You might as well except losses IN
directly due to tornadoes or blizzards. New York
might have burned up az the time of the great
blizzard, but it would not have been right to have
such situation invalidate the insurance
Several kilograms were received yesterday
from officials and representatives OF insurance
companies who have reached San Francisco.
One expressed the opinion that the companies
would not get rid OF more than 10 per cent OF
their liabilities in the burned district through
the action OF the earthquake. Other estimates
ranged from that to 40 per cent.
Underwriters would be much surprised Is the
property owners in San Francisco should claim
losses from the earthquake" said prominent
local insurance man. 1.-THE exact amount OF the
total liabilities to be paid is an important ques-
ton. On its settlement depends the solvency
of a number of companies
The underwriters' records Of the entire Pacific
Coast were destroyed in San Francisco. so IL
will be a difficult matter to do any new insur-
ance business in the whole territory until the
agents get copies of their records. These are
being sent on from the East and from Germany
England and Sweden. but until they reach the
coast the transaction Of all business there will
be uncertain work.
Several representatives of foreign companies
a6 he al Nothing def
mite was decided yesterday the proposition
that the companies get together and agree 20
pay about 60 per cent of the claims within thirty
days rather than have long litigation over them.
S. T. Perrin. an underwater, OF No. As Cedar
street. yesterday defended the proposed increase
in premium rates. He said that there was
profit Of about per cent on the premiums re-
ceived and that the money was made and tne
reserves built up by wise investments Of the
premiums.
So far as can be learned. there is no truth in
the report that big syndicate Is being formed
to finance the rebuilding of San Francisco.
George Simpson. chief engineer Of the Thomp--
-Starrett Construction Company, is in Oak
land and will make a scientific study Of the eff
feet of the earthquake and the fire on the vari-
Gus types of construction. Theodore Starrett,
the company's president, has received word that
the Hayward Building which was in the heart
OF the business OISIEICLs was pIdCSCcAlS
jured It is an example of the most advanced
type Of steel construction.
Mr. Starrett says there need be no fear that
the facilities and supplies OF materials in this
country will be Overtaxed in rebuilding San
Francisco.
There will be little done in the way Of maxi
ing contracts for new buildings until the insur-
ance claims have been adjusted, it is said.
An important omission was made in the trans
mission of a dispatch from London on Wednes-
day night, giving the text of the joint dispatch
sent to Oakland. CAL. by representatives OF
several British insurance companies interested
in the San Francisco disaster. The message
should have read:
Under any circumstances the British offices
will only pay the losses for which they are
| legally liable since to go beyond their con-
tracts would be illegal. They cannot recognize
any liability for damage by earthquake where
no fire ensued. nor for damage by fire to fallen
or partly fallen buildings nor for damages 70
buildings pulled down or destroyed by order or
the San Francisco authorities