EXHIBIT 99.1
                            ------------

                         COMMERCE GROUP CORP.
                        6001 NORTH 91ST STREET
                       MILWAUKEE, WI  53225-1795
                     414/462-5310 . FAX 414/462/5312
   Stock Symbols:  CGCO (OTC BB) CMG OR CMG.BN (Boston Stock Exchange)

AND/OR COMMERCE/SANSEB JOINT VENTURE (Joint Venture)
AND/OR HOMESPAN REALTY CO., INC. (Homespan)
AND/OR PICCADILLY ADVERTISING CO., INC. (Piccadilly)
Whose name was changed as of  January 27, 1999  to ECOMM GROUP INC. (Ecomm)
AND/OR SAN LUIS ESTATES, INC. (SLE)
AND/OR SAN SEBASTIAN GOLD MINES, INC. (Sanseb)
AND/OR UNIVERSAL DEVELOPERS, INC. (UDI)
ALL LOCATED AT THE SAME ADDRESS

May 10, 1999


Mrs. Sylvia Machulak
President
General Lumber & Supply Co., Inc.
6001 North 91st Street
Milwaukee, Wisconsin  53225

Dear Mrs. Machulak:

At today's Commerce Group Corp. (Commerce) Directors' meeting, the
Directors were informed about the confirmation and status letter you
requested from Commerce and its affiliates to establish and confirm the
amount due and the collateral pledged to General Lumber & Supply Co.,
Inc. (GLSCO)  as of Commerce's fiscal year ended March 31, 1999.  Today,
Commerce's Directors approved, ratified and confirmed the contents of
this letter and authorized me to authenticate and confirm the outstanding
obligations due to GLSCO, and to describe the collateral pledged to GLSCO
as of Commerce's fiscal year ended March 31, 1999, which are as follows:

1.   Promissory Notes and Other Obligations

     a.  An open-ended, secured, on-demand promissory note no. 3 which
         was originally issued to GLSCO on December 31, 1981 in the sum
         of $16,836.37 and has been open-ended since that date and is to
         include all future advances, services, charges and interest on a
         monthly basis.  Pursuant to Commerce's Directors' approval on
         October 1, 1990, the interest rate on this note was increased to
         a rate of 4% over the prime rate base established by the First
         National Bank of Chicago, Chicago, Illinois.  Beginning with
         April 1, 1994, the interest rate is 4% over the prime rate base
         established by the First National Bank of Chicago, Chicago,
         Illinois, but not less than 16% per annum.  The interest is
         payable monthly and the total amount due to GLSCO on this
         promissory note as of March 31, 1999 is $1,493,026.31.
         (Schedule of Principal and Interest as of March 31, 1999,
         Exhibit A) Commerce is no longer issuing monthly notes for the
         payment of interest, purchases, rent, etc., but pursuant to our
         understanding, Commerce is adding these liabilities or deducting
         any payments to the current open-ended outstanding promissory
         note(s).

<PAGE>

     b.  Commerce leased approximately 3,100 square feet on a
         month-to-month basis for its corporate headquarter's office; the
         monthly rental charge was $2,145 since October 1, 1992.  As of
         December 1, 1995, Commerce increased the space it rents to 4,032
         square feet, and the monthly rental charge was increased to
         $2,789.  All other terms and conditions of the Amended October
         1, 1992 Lease Agreement remain the same.  (Reference is made to
         Exhibit B, December 1, 1995 Amended Lease Agreement, included in
         April 13, 1998 confirmation letter.) (Reference is made to
         Exhibit B, Lease Agreement, included in April 12, 1993
         confirmation letter.)

     c.  Commerce also acknowledges that it purchases on an open account
         from GLSCO from time to time materials, supplies etc. that it
         needs for itself or for the Joint Venture.  Some of the
         purchases are made through GLSCO because Commerce does not have
         the credit availability from the various sellers of goods,
         merchandise, etc. that is required by it or the Joint Venture.
         The amount due from time to time varies.  As of March 31, 1999,
         the amount due on this open account is $15,590.38.

     d.  GLSCO from time to time has canceled part of its debt to
         purchase restricted Commerce common shares at a price as sold to
         third party purchasers on an arms-length transaction.  There
         were no such transactions consummated during this fiscal year.

     e.  On January 22, 1997, four-year stock options to purchase 68,000
         of restricted Commerce common shares, $0.10 par value, at a
         price of $3.00 per share, were issued to GLSCO based on
         arms-length transactions that had taken place at that time.

2.   Collateral Pledged to GLSCO

     The collateral specifically pledged to GLSCO is as follows:

     a.  San Luis Estates, Inc. (SLE) Certificate No. 24 which is dated
         December 31, 1981, consisting of 48,645 common shares, $0.50 par
         value, being 50% of the total issued and outstanding shares.
         SLE and Commerce agree that no additional shares of any kind
         whatsoever of SLE will be issued as long as any monies are due
         to GLSCO.  Reference is made to Exhibit 3 included in the April
         9, 1990 confirmation letter.

<PAGE>

     b.  A Deed of Trust dated November 3, 1983 by and between Homespan,
         as party of the first part, and Ronald K. Carpenter, Esq.
         (Trustee), as party of the second part, for the benefit of
         Edward L. Machulak (ELM),  as an individual, and not as a
         Director or Officer of Commerce and GLSCO, as party of the third
         part.  The Deed of Trust is in favor of ELM and GLSCO and is
         open-ended to secure the promissory note(s) due to ELM and GLSCO
         and to further secure any future obligations that Commerce or
         Homespan may incur from them.  This Deed of Trust is issued to
         Ronald K. Carpenter, Esq., Trustee for the benefit of ELM and
         GLSCO and is a lien on the 331-acre Standing Rock  Campground
         located in Camdenton, Missouri.  The Deed of Trust was filed for
         record on November 5, 1984 in Camden County, Missouri at 1:24
         p.m. in Book 122, Page 200.  Reference is made to Exhibit 4
         included in the April 9, 1990 confirmation letter.

     c.  GLSCO, ELM, the Edward L. Machulak Rollover Individual
         Retirement Account (ELM RIRA) and the Sylvia Machulak Rollover
         Individual Retirement Account (SM RIRA) collectively and
         individually identified as the lender(s),   have been assigned
         on October 19, 1987, all of the rights, titles, claims, remedies
         and interest in and to the mine concession granted by the
         Government of El Salvador to Mineral San Sebastian, S.A. de C.V.
         (Misanse) on July 23, 1987, and thereafter from time to time
         amended, and which Misanse then assigned to the Joint Venture on
         September 22, 1987.  Commerce and the Joint Venture have the
         right to assign this and any subsequent concession agreement.
         Reference is made to Exhibit 5 included in the April 9, 1990
         confirmation letter.  Effective February 1996, the Government of
         El Salvador approved an updated version of the mining law.
         Therefore, Commerce applied for a mining concession applicable
         to this mining law at the San Sebastian Gold Mine.  The
         concession is subject to compliance which has been presented to
         the El Salvador Director of Mines and Hydrocarbons.  Therefore,
         it is clearly understood that this new concession is to become
         collateral effective simultaneously upon receiving the
         concession to all of the parties herein mentioned.

<PAGE>

     d.  An interest with ELM in filing financing statements under the
         Uniform Commercial Code by an assignment and pledge of all
         corporate assets, such as but not limited to the property of
         Commerce, Joint Venture, SLE, and Homespan, wherever located,
         now owned or hereafter acquired is as follows:  all accounts,
         all land contract receivables, contract rights, instruments and
         chattel paper; all inventory, all jewelry and precious stones,
         and all documents relating to inventory, including all goods
         held for sale, lease or demonstration, to be furnished under
         contracts of service, and raw materials, work in process and
         materials and supplies used or consumed in the business of
         Commerce, Joint Venture, SLE, and Homespan; all office
         furniture, fixtures and all other equipment; all general
         intangibles, all stock and securities of any kind,  and all
         rights, titles, and interest in the Commerce Group Corp./San
         Sebastian Gold Mines, Inc. Joint Venture, and all additions and
         accessions to, all spare and repair parts, special tools,
         equipment and replacements for all returned or repossessed goods
         the sale or lease of which gave rise to, and all proceeds and
         products of the foregoing.  Reference is made to the Uniform
         Commercial Code filing, Exhibit 6, included in the April 9, 1990
         confirmation letter and the renewed UCC-1 filing on December 17,
         1996, Exhibit B, included in the April 14, 1997 confirmation
         letter.

3.   Cross Pledge Collateral Agreement

     GLSCO, ELM, the ELM RIRA and the SM RIRA individually are entitled
     to specific collateral that has been pledged to them by Commerce,
     its subsidiaries, affiliates and the Joint Venture.  Upon default by
     Commerce, or its subsidiaries or affiliates or the Joint Venture,
     GLSCO, ELM, the ELM RIRA and the SM RIRA have the first right to the
     proceeds from the specific collateral pledged to each of them.
     Commerce, its subsidiaries, affiliates and Joint Venture also have
     cross-pledged the collateral without diminishing the rights of the
     specific collateral pledged to each of the following:  GLSCO, ELM,
     the ELM RIRA and the SM RIRA.  The purpose and the intent of the
     cross pledge of collateral is to assure GLSCO, ELM, the ELM RIRA and
     the SM RIRA, that each of them would be paid in full; thus, any
     excess collateral that would be available is for the purpose of
     satisfying any debts and obligations due to each of the named
     parties.  The formula to be used (after deducting the payments made
     from the specific collateral) is to total all of the debts due to
     GLSCO, ELM, the ELM RIRA and the SM RIRA, and then to divide this
     total debt into each individual debt to establish each individual's
     percentage of the outstanding debt due.  This percentage then will
     be multiplied by the total of the excess collateral to determine the
     amount of proceeds derived from the excess collateral and then the
     amount due to each of them would be distributed.

<PAGE>

4.   Cancellation of Inter-Company Debts Upon Default

     Since part of the collateral pledged to GLSCO, ELM, the ELM RIRA and
     the SM RIRA is the common stock of Homespan, Ecomm, Sanseb, SLE,
     Misanse, UDI and the interest in the ownership of the Joint Venture,
     Commerce agreed, upon default of the payment of principal or
     interest to any of the individual lender(s) mentioned herein, that
     it will automatically cancel any inter-company debts owed to
     Commerce by any of its wholly-owned subsidiaries or affiliates or
     the Joint Venture at such time as any of the stock or Joint Venture
     ownership is transferred to the collateral holders as a result of
     default of any promissory note.

5.   Guarantors

     This agreement further confirms that Commerce and all of the
     following are guarantors to the loans made by GLSCO to Commerce:
     Joint Venture, Homespan, Ecomm, SLE, Sanseb and UDI.  They jointly
     and severally guarantee payment of the note(s) that they caused to
     be issued and also agree that these note(s) may be accelerated in
     accordance with the provisions contained in the agreement and/or any
     collateral or mortgages securing these notes.  Also, Commerce, all
     of its subsidiaries and the Joint Venture agree to the cross pledge
     of collateral for the benefit of GLSCO, ELM, the ELM RIRA and the SM
     RIRA.  Reference is made to Exhibit 7 included in the April 9, 1990
     confirmation letter.

6.   Omissions

     Commerce believes that it has included all of its obligations,
     monies due and has listed all of the collateral due to GLSCO,
     however, since these transactions have taken place over  a long
     period of time in which changes could have taken place, it is
     possible that inadvertently some item(s), particularly collateral,
     could have been omitted.  If that should prove to be a fact, then
     Commerce, the Joint Venture, Homespan, Ecomm, SLE, Sanseb, and UDI
     agree that those omissions of collateral, if any, are meant to be
     included as collateral with this confirmation and agreement.

If you are in agreement with the contents of this letter, please sign
below and return one copy to Commerce.

Very truly yours,

COMMERCE GROUP CORP.

/s/ Edward A. Machulak
------------------------
Edward A. Machulak
Secretary

<PAGE>

The contents of this letter are agreed by the following:

COMMERCE/SANSEB JOINT VENTURE           HOMESPAN REALTY COMPANY, INC.
as Guarantor (Joint Venture)            as Guarantor (Homespan)

/s/ Edward L. Machulak                  /s/ Edward L. Machulak
_______________________________________ __________________________________
By:  Edward L. Machulak, Auth. Designee By:  Edward L. Machulak, President


ECOMM GROUP INC.                        SAN LUIS ESTATES, INC.
as Guarantor (Ecomm)                    as Guarantor (SLE)

/s/ Edward A. Machulak                  /s/ Edward L. Machulak
____________________________________    __________________________________
By:  Edward A. Machulak, Secretary      By:  Edward L. Machulak, President


SAN SEBASTIAN GOLD MINES, INC.          UNIVERSAL DEVELOPERS, INC.
as Guarantor (Sanseb)                   as Guarantor (UDI)


/s/ Edward L. Machulak                  /s/ Edward L. Machulak
____________________________________    __________________________________
By:  Edward L. Machulak, President      By:  Edward L. Machulak, President


Accepted by:

GENERAL LUMBER & SUPPLY CO., INC.



/s/ Sylvia Machulak
____________________________________
By:  Sylvia Machulak, President
Date:  May 10, 1999

<PAGE>
                       Exhibit A to Exhibit 99.1
        (Schedule of Principal and Interest as of March 31, 1999
             has been purposely omitted as it only reflects
            the calculations of the principal and interest.)