St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-04-24
The State Will Investigate the
Action of the N. Y. InsuP-
ance Commissioner
In Regard to the Suspension
Of the St. Paul German In
suranee Company.
Statement Of the Case So Far
as the Local Company Is
Concerned.
Unless Justice Is Done, New
York Companies May Hear
Something Drop.

The action of the insurance commits
siOner of New York iii reyoking the
license of the St. Paul German Insur-
ance company as reported in the GLOBE
yesterday, was the cause of great sur
prise to the officers of the company.
Albert Schetfer. the president, and W.
c. Bredenhagen, vice president and
manager of the company, called upon
State Insurance Commissioner Smith
yesterday at the capitol and held a long
consultation with that official. At
torney General Clapp was also called i'll
and asked for his opinion upon the mat
ter. The following statement was made
last evening by the officers of the COM
pany as the result of their deliberations
during the day with the state officials:
The publication of the press dis
patches of yesterday regarding the ac-
ton of the insurance department of
New York against the ST. Paul German
insurance company of this city, was
quite a surprise to the officers of the
company. No notice of any kind had
been received from said department as
to its disapproval Of certain portion of
the company'S assets, being real estate
mortgages on St. Paul property. 1t
would nave been
Common Courtesy
to first notify the officers of the com
pauy and give them an opportunity to
make such changes as were wanted be-
fore taking such serious acton, but the
injustice and damage is done and no
remedy possible. This company applied
to the said department in July of last
year for the usual license to do fire risk
insurance business, il the state of New
York, and we were informed that we
would have to make material changes
IN portion of our assets, as the laws of
New York required the whole amount
Of the capital of fire insurance cOmpa-
MES to be invested either in United
States bonds or real estate mortgages.
Unlted States bonds, on account of the
high premium and the low rates of in
tereSt. were out of the question, and we
complied with their requirements by
changing what we considered git-edged
securities to real estate mortgages on
st. Paul property. We gave them all
the information asked for regarding
these investments, and complied with
further requirements in detail. and as
we presumed fully. and after de-
lay, lasting from Aug. to Oct
|, the company was finally admitted.
The various technical questions raised
convinced us that there was prejudice
somewhere to prevent the admission of
the company, which would have TO be
overcome i'll some manner. Our annual
statement was duly filed, for this year,
III thirty-SeVen states, including New
York, and the prosperous condition
and absolute responsibility of the com
pany was
Not Questioned
anywhere. March 2Oand q, the deputy
superintendent of the New York in
surance department came to st. Paul
to inspect the properties which were
covered by mortgages held by the
company, and mentioned now as I'M
satisfactory. The value of the security,
which is in one item seven times and
tie other three times the loan. is not
questioned. Mr.. Shannon, the deputy
superintendent was apparently sat
lSfed with the securities mentioned. at
least he left st. Paul March p, and we
received authority and bill for agents
certificates from the state department.
dated at Albany on March r. The bill
was promptly paid, and we naturally
presumed everything was satisfactory
We have not received the slightest init
nation from the department Of its dis
approval, and cannot understand why a
company should be treated in such a
manner without first being notified and
| asked to make any changes in securi-
ties.
The New York departments action,
and causing its publication broadcast
over the country. is certainly not based
on the fear that a New York policy
holder of this company will not receive
his money in case of loss, but for pur-
poses altogether foreign to this ques-
ton. The fact that such publications
are of a serious character to any insur-
ance company evidently does not CON
Germ the New York department.
1t is hardly fair treatment to revoke
d license four weeks after having been
granted and paid for, without even the
slightest intimatiOn beforehand what is
wanted.
The insurance department of this
state has asked the New York depart
ment for an explanation of these un-
warrantable proceedings. Our depart
ment approves of these securities as
absolutely beyond question.