The Duluth rip-saw. [volume] (Duluth, Minn.) 1917-19??, 1919-02-22
Big COMPANY AT CL0QUET
HEDGES ON FIRE DANGERS
Fire Relief Methods Discussed-Card Index Gets I'm
Its Deadly Effect Charged That Supplies
Are Too Carefully HOarded.

- s. ~ - &c.
The people: Of cloquet have
firmly believed that at least some
of the Weyerhaeuser companies
tried to blk the insurance COM
panies by securing heavy lines OF
additional Insurance. when they
could almost see the flames creep
ing over the hills to devour the
noted sawmill city. 81. ........--.
20 There have been many whispered
allegations that some city officials
and the lumber companies we'll
knew the danger. the town was in
and what might happen to the place
within a very few hours.
It even is alleged and believed
by many citizens Of, Cloquet that
the lumber companies knew that
cenflagration impended but that
they refused to let the people Of
Cloquet know .,as- to the actuHl SIT
uation so that the companies could
contend, when pressing, their IN
surance claims, that they were in
utter ignorance Of impending dan
ger, through making the newly
placed insurance hold. 80 IT.
There have been. many tales told,
one, of which is that attempts were
made as late as 8 p. m., on the
afternoon of the FIRE, to place. heavy.
lines OF additional insurance. with
agents and brokers in Duluth. =.
Early this week there were re-
ports to.s.the effect that agencies
who accepted some OF the so-calied
eleventh hour risks had repudiated
the same and that the ,Weyerhaeus-
er interests had brought suits to
collect. .a....... ,-...,-.
Realizing that many, at least, Of
these stories were firmly believed
and that, Sn true, they made a
formidable indictment against greed
and sharp practice, the Rip-saw has
taken money and time to .fnYesti-
gate. 49, '.-.. 3D.. r.;
It is admitted that the CloQuet
Lumber Co. "telephoned to an, in
surance agency in Duluth as late
as $3.50 p. m. and then again as
late as 8 p. m. on the Saturday Of
the fire, asking for heavy line
of additional insurance. 1t Is fur
Their stated that the w. M. Prindle
agency received the order. Not pos
sessing companies heavy enough in
resources and number to take the
huge policies desired, the Prindle
company handled the. matter as q
broker in INSURANCE. 80
Some of the Duluth agencies are
admitted to have. accepted risks to
certain limits while others turned
down the applications. For what
reasons in each and every case, 1t
is impossible for the Rip-saw to
know or state. tt....>....@ -..
Insurance to be binding does not
require the actual writing and de-
livery of a policy. Soscalled bind
ers" can and ofteHF are -isgiled - It
is admitted that, Ia casss, p3nders
were issued in favor Of the CloQuet
Lumber Co.. =. -. ~, ..;...;>. -.
: In one case, the Rip-saw lis relt-
ably informed, clerk tn" Duluth
insurance Office wrote . binder
which, later, was repudiated by the
responsible man Of the agency. :, 1t
may become q question of. law as
to whether or not the agent was
held by the action of his clerk.
It is understood that claims for
this late-hour insurance have been
fled through the law firm of Abb
bott, McPherran G Gilbert. It ~
denied that the insurance compa-
MES have refused a settlement. 1t
Is further denied that any action
has been started, either by the
Cloquet, Lumber Co. or by the hre
Insurance companies. -,
It is admitted that agents of a
prominent legal firm of Duluth are
carefully investigating matters. The
Rip-saw knows who is in charge OF
these Investigations but is under OBJ
legation to. keep 1.-The Information In
confidence. - 49,
Common report had it that the
iast-hour insurance secured by the
Cloquet Lumber Co. amounted to
over 100000. One authority
thought it might amount to $751;
900. A prominent lawyer who yet
may become known in the matter,
doubted if the sum involved was as
much as $175,000. ...s>.' .-s -.
Only two Weyerhaeuser compa-
mics suffered loss at .Cloquet. the
Northern Lumber Co. and the Clo-
quet Lumber Co. There never was
any question as to the insurance
carried by the Northern Lumber
Co. Its claims were adjusted
quickly and amicably weeks ago.
They may have amounted to sew
eral million dollars.
II any lawsuit should grow out
Of the action Of the Cloquet Lum-
Der Co. In snatch,ng on last-hour
insurance, 1t will be settled On two
main facts, viz: !.
Was one company legally held
by the action of the agents clerk
In issuing a binder or was the re-
pudiation of such action legal bar
to recovery By the lumber COM
pany? IT..
The other question Is whether or
not the property really was In jeop-
ardy at the time the Insurance was
solicited and secured. A property
Is not insurable under the laws OF
Minnesota, and most other states,
when in peril.
Cloquet comes under the jurfs-
diction OF the Minnesota Forest Fire
Relief commission. Coli Eva vice
= 60