It became my duty to inform the directors that a meeting of the
representatives of all the fire insurance companies interested in the
conflagration was called for an early date at Reed's Hall, Oakland, and
that I understood the principal object of this meeting was to secure an
expression of opinion as to the method to be adopted in settling San
Francisco losses, whether seventy-five cents on the dollar should be
paid or settlement on a 100 per cent basis be made, and I requested
instructions. This was merely pro forma as the company had already
announced its position publicly as being in favor and promising to pay
cent for cent the full obligation of its contracts. The board gave me
the instructions I had expected.
The meeting at Reed's Hall was a most memorable one. The late Geo. W.
Spencer, at that time manager of the Aetna Insurance Company, presided,
and to his fair and impartial rulings and usual courtesy and dignity of
manner, is attributable the fact that there was not considerably more
friction than developed. Even as it was, the discussions were acrid and
verged at times close to personalities and the oratory, especially on
the part of those who advocated the "six-bit" policy, was both perfervid
and vociferous. However, the representatives of the companies that had
made up their minds that their honor and contracts were worth dollar for
dollar had little to say and were not influenced by the alleged
arguments of the "six-bit-ers."
They felt that in the last analysis there was no logical, honest
argument for the discounting of payments unless it were a case of
absolute insolvency with individual companies. It was maintained by the
opponents to the "six-bit" policy that the insuring public had paid for
what it assumed to be valid contracts and was entitled to just indemnity
and payment in full. Finally, the roll call came to ascertain the sense
of the meeting--seventy-five cents or one dollar. The roll call was
thrilling in the intensity of feeling it developed and in the position
in which it revealed each company's standing, whether for an honorable
fulfillment on the one hand or a dishonorable scaling of losses on the
other. Alphabetically, the California Insurance Company came early in
the list and I voted with those who felt their obligation to be one
hundred cents on the dollar. The position which the California would
take had been awaited with considerable interest. The public
announcement that the company would pay dollar for dollar was still
recent and this announcement had appealed to nearly every person at that
gathering as a promise which the company was absolutely and physically
unable to perform. The registering of the vote called forth quite a
demonstration. Laughter, smiles and sarcasm predominated in the part of
the hall where I was located. For a moment I was the center of
attraction.
Despite the embarrassment and annoyance under which I labored, I felt
that I was called upon to defend the good name of the company and,
gaining recognition from the chairman, I said that the manner in which
the "California" voted seemed to cause some of those present
considerable amusement and that, individually, I didn't see anything in
it that was funny; that it was more of a tragedy than a comedy, and that
it was a solemn and serious matter for the company of which I was the
representative to go on record for the second time, publicly, as
pledging itself to pay so tremendous an amount of money out of the
pockets of its stockholders; that I was present at the meeting to carry
out the expressed instructions and wishes of these same stockholders and
that they intended to be scrupulously careful in keeping their promises,
backing their words with their deeds and dollars. This statement brought
from the dollar-for-dollar companies a gratifying amount of applause and
the "six-bit-ers" sank into silence.
As the days passed and the "tumult and shouting" died, it gave a certain
amount of satisfaction to find that amongst the jeerers and sneerers at
the memorable Reed's Hall meeting, those who had battled most vigorously
for the horizontal cut of twenty-five cents were those who afterward
developed into the worst welshers and shavers in the entire history of
the loss settlements of the San Francisco or any other conflagration.
The "sparkling" Rhine, the "still" Moselle, the far-famed "Dutchess,"
the German of Freeport, the Traders of Chicago, the Austrian Phoenix,
the Calumet, the American of Boston and others soon after sought the
seclusion which a receiver or cessation of business in California
grants, and like the Arab, they folded their tents and silently stole
away.
At the termination of the meeting, President Chase of the Hartford,
President Damon of the Springfield, Chairman Spencer and several others,
all leaders in dollar-for-dollar ranks, some of whom are alive and some
of whom are gone, gathered around and congratulated the California upon
its attitude. Individually, it gave me a feeling of pride and
satisfaction to be the representative of a company which manfully stood
up to the rack with the best traditions of American fire insurance. It
may be well to recall to mind as a historical fact that it was at this
meeting the term "dollar-for-dollar" companies was born.