In the absence of any specific or definite information as to the amount
of the company's indebtedness this action of the directors was a most
magnificent exemplification of nerve and integrity and a superb
testimony reinforcing the axiom that a California man's word is as good
as his bond.
The board might have instructed its secretary to make the best
compromise settlements possible and have wound up the affairs of the
corporation. The public mind was in a receptive mood to accept such
compromise settlements and such action would have resulted in extreme
financial advantage to the stockholders at the time when the resolution
was passed. No one at that time believed that the California would
discharge its obligations on a parity with the largest and strongest
insurance companies in the world. Indeed the public announcement that
the company would pay in full was regarded as ridiculous and
unbelievable and was generally considered in the light of an extremely
sagacious bluff.
The directors of the company were not bluffers; they were made of
different stuff. They did not hesitate. They were in deadly earnest and
absolutely meant to live up to their spoken word and the world knows how
they redeemed their promises.
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