St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-04-03
How Several So-Called "Wild-
Cat Insurance Companies
Must Pay the Penalty.
Insurance Com. ShadreW Goes
Cunning for Big Cor
porations.
They Have, It Is Alleged
Failed to Comply With
the State Law.
How Their. Illegitimate Oper-
atoms in Minnesota Came
to Light.

Twenty-three of the so-called wildcat
insurance companies which have been
doing nice little business in ST. Paul
all on the quiet; have been discovered
and now Insurance Commissioner Shah
drew is after their scalpS. Their opera
tions were brought to light shortly after
the Foote, Shulze & Co. fire, when an
adjuster was called in to appraise the
loss sustained by the Ryan Drug COM
pany.
Service was made yesterday on W. u.
McCOrd, the adjuster of all these com
panies, by Davis, Kellogg & Severance,
who have been retained to prosecute
this suit by the state insurance commits
sioner. The facts are best set forth in
the complaint against the Germania
company, New Orleans, an abstract of
which is as follows:
That said defendant has never at any
time filed with the insurance commits
sioner of this state copy OF its charter
duly accepted, OF its declaration OF Or
ganiZation or deed OF settlement, duly
approved by the attorney general OF the
state of Minnesota and certified by the
insurance commissioner or other proper
officers Of the state of Minnesota, with
the certificates of such officers that said
defendant company is entitled to assume
risks and issue policies in said state,and
has never filed the stipulation respect
ing service or process in this state re-
CURED by section 300 of title OF chapter
"a of the statutes of the state of Mime
sofa, relating to provisions applicable
to all classes of insurance COM
panies, and has not filed with the
Insurance commissioner OF this state
written stipulation, STIMULATING that any
legal process affecting such company
served on the insurance commissioner
of this state shall have the same effect
as if personally served on the said
company and required by an act OF the
legislature of the state of Minnesota,
entitled IAN act relative to the service OF
process of insurance companies not In
corporated under the laws OF this state"
approved March l, 1856, and that said
defendant insurance company has never
at any time furnished to the insurance
commissioner of this state a statement
of it's condition and business, as is re-
uuired by sections 297 and 29S of title 3,
chapter 81 of the general statutes of this
state. relating to provisions applicable
to all classes of companies insuring
property in the state of Minnesota
against loss OF damage by fire, and that
said defendant company has never paid
to the state of Minnesota 2 per cent OF
all premiums received i'll cash and other
obligations for said taxes as required by
section 315 of title of chapter 81 OF the
General Statutes Of the State OF Mime
sofa relating to provisions applicable to
all 81 of
surfing property in the state of Mime
sofa against loss or damage by fire, and
that said defendant company has never
at any time complied with the laws Of
the state OF Minnesota governing insur-
ance companies and emitting it to do
business in said state as fire insurance
company: all of which was required of
the said defendant company by said ii
tie 5 of said chapter "a OF the Statutes OF
Minnesota.
Then follow allegations of the issu-
ance of the policy of the Ryan Drug
company, the payment of the premium,
the damage by fire and the work of the
adjuster, McCord.
The complaint then goes to say:
That, under and by virtue of an act of
the state of Minnesota, entitled An act
concerning insurance companies and to
authorize the commissioners Of in
surance TO sue for and collect penalties"
approved March 7, 1887, it was and is
provided that every Insurance company
doing business in this state without
having complied with the law governing
an insurance company shall forfeit and
nav to the state of Minnesota the sum
of one thousand dollars (Sl,000.O0) for
each and every offenSe, to be recovered
in a civil action in the name of the state
of Minnesota.
That the said defendant company has
never at any time complied with the
laws of this state governing all inSur-
ance company, as hereinbef0re more
particularly stated, and has, nOtWith-
standing its failure to comply with the
laws of this state, done an insurance
business in this state, as hereinbefore
alleged.
Wherefore, plaintiff demands judg
ment against said defendant for the
sum of 81, 900, and for the costs and dis
bursementS herein laid out and eX-
pended.
THE OTHER COMPANIES
against which similar actions have been
brought. and in which the complaints
are similar to the above, are as follows:
Council Bluffs, of Council Bluffs, To-;
Home Mutual, of Nashville, Tenn;
Capital, of Concord, N. H.; Fidelity, of
Huron, OAK; Pelican. of New Orleans,
La; Island Home, of Knoxville, Tenn;
East Tennessee, of Knoxville, Tenn;
Arlington, of Memphis, Tenn; Htna.
Wheeling, W. Va; Manufacturers,
Wheeling: Fire and Marine, Wheeling;
Mount Holly, Mount holly, N. j.;
Standard, Wheeling; Knoxville Fire,
Knoxville, Tenn: Pierre F. and NJ,
Pierre, Oak. {; Lafayette Fire, Lafayette,
Ind; Citizens Fire, Evansville. Ind;
Northwestern Mutual, Wahpeton, Oak.