"Then there must be other companies now who will lose more in this fire than they can pay?"
"Without a doubt. There has never been a fire of this magnitude that has not absolutely ruined many of the smaller companies. It takes either a very strong or a very conservative insurance company to weather a great conflagration. After each of our big city fires in this country many and many a company has found that after it paid its losses there would be nothing left to carry it to further existence—capital and surplus were both wiped out. And it must be said to their credit that most of them, at a time like this, pay every cent they owe, even if they have to go out of business directly afterwards."
"But if they haven't enough money to pay their losses? Suppose their capital and surplus isn't sufficient?"
"Then they either fail, and the receiver pays what he can to each claimant, or else they call upon their stockholders—assess them. Once in a while you will find a company refusing to pay, on the ground that so great a calamity is an act of God, which no indemnity was ever designed or intended to cover. Quite a few foreign companies took this stand after the San Francisco earthquake-fire; but the leading companies, American and foreign, paid dollar for dollar. The smaller fry tried to compromise a bit; but most of them eventually made pretty fair settlements, in the main. We'll see what they'll do in Boston."
"After the fire is out."
"Yes; and I really must go now, for I'm very anxious to see how they're handling it."
"It was very good of you to come."
"I'll come again, if there is anything of consequence to report. I'm certain you'll be all right here. You haven't worried too much, have you?"
"Well, the waiting has been pretty bad," the girl confessed.
"Then don't worry any more, either of you, for if there should be the slightest danger, I'll come back at once."