The San Francisco call., 1906-09-15

The North German Insurance Com
pany of New York will not pay the
San Francisco policy-holders more than
25 cents on the dollar if 1t can avoid
doing better. The losers have just
come to the knowledge of that fact
through a communication from the New
York Office of the company. The losses
Of the North German of New York in
San Francisco amounted to about $780,
0o0 in round figures. Therefore it is
coolly proposed to slice $675,000 off the
amount due to San Francisco on that
basis. An invitation has been extended
to the policy holders in San Francisco
to get together and have a representa-
tive in New York to examine the books
and assets and report whether the
company can pay any more than the
amount mentioned.
A meeting of the claimants against
the North German OF New York was
held in the Offices of the Policy Hold
ers' Association of the North German
of Hamburg yesterday afternoon. w. j..
Herrin informed the policy-holders of
the communication from New York and
discussed the situation with them.
After some deliberation it was decided
to hold another meeting before any
action should be taken.
THREATENS INSOLVENCY.
The alternative threatened by the
North German of New York is that it
will go into insolvency If its offer is
declined. Until yesterday ii was sup
posed in San Francisco that the poll
cies of the North German of New York
all contained waiver of right to pro-
ceed against the stockholders of the
company. Now 1t is known that there
are at least three kinds of policies in
existence here and that each sort has
representation among the fire losers.
One form of policy provides that the
stockholders shall not be liable. An
other provides for non-liability of
stockholders and also adds an earth
quake clause that is not in the first
mentioned form. The third kind of poll
cies does not provide that the stock
holders are not liable nor does 1t in
clude an earthquake clause Therefore
the policy-holders occupy three differ
ent positions against the company. and
some unquestionably are entitled to sue
the New York and Chicago stockhold-
ers. all of whom are wealthy
The list of stockholders includes sew
eral bankers and prominent men of
business. Edward G.. Foreman, one of
the number, is president of the Fore
man Brothers Banking Company of
Chicago. Z. T. Hulst is cashier of the
Bank of New York. Paul Lichtenstein
is of the banking house Of Ladenburg.
Thalmann &. Co. of New York. Herbert
Scheftel and w J. Woolman are of the
banking firm of J. s Bache & Co. Two
of the Loebs. Adolph and Leo A. are
president and vice president, respect
lively.
SMALLEST OFFER MADE YET.
Under the laws OF the State of New
York the company must keep $500, 900
on deposit with the Department of In
surance. The representation of the
wealthy men who are trying to dodge
payment in San Francisco therefore
amounts to a statement that they have
but SIS. 900 in assets available for pay
ing losses outside of the sum deposited
under the law.
This is the smallest offer that any
company making any pretense of pay
ing anything has yet made for the con-
sidera tion of San Francisco losers At
torney Herrin advised the policy-hold-
ers yesterday to get together as strong
a representation of policies as possible.
that an examination of the books and
assets may be made in their behalf.