St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-04-25
SCORED BY sCHEFFER.
The Germans President Writes
Whitening Letter.


Whitening Letter.
In addition to the above letter, Hon.
Albert Schetfer, president of the COM
pany, last evening mailed letter to the
insurance commissioner of New York.
MIR. Schetfer. in speaking of the affair
last evening to GLOBE reporter, said
that the only reason he could think for
the action of the New York commits
sioner was the fact that Senator Lienau
had introduced bill in the senate Civ
ing the insurance commissioner power
TO treat foreign and other state inSur-
ance companies doing business in Min
neSota in the same manner as the COM
paHes of Minnesota were treated else
where. The retalatory powers of the
bill have evidently angered the New
York official, but Mr.. Scheffer felt conf
dent that the New York companies
would not allow themselves to be Sus-
pended from doing business in Mime
sofa, which will be the case if the St
Paul company is not reinstated. The
text Of Mr.. Scheffer'S letter is as fol-
lows:
Hon. James F. Pierce. superintendent of
insurance. Albany, y. T.-Sir: Through the
courtesy of the Associated Press this com
daily papers in the United States, were adj
vlsed OF the fact that you had seen nit, with
out nouce TO Us, TO revoke the license of the
ST. Paul German Insurance company to do
business in the state of New York Through
your inconsiderate action you have done our
company an incalculable injury-au injury
which you cannot repair by the exercise of
your influence, intellect, integrity and best
intentions 1t cannot be possible that you
should take this step and in the manner you
did. fearing for the safety Of the policyhold-
ers III the state of New York AS no objection
Is made in regard TO the value Of securities
(which you refused on the technical ground
that they are not strictly in accordance with
the laws of your state) common courtesy, TO
say nothing of the regard You should have
Tor the financial reputation of a financial in
slltutlon in which so many people are inter
csted, II seems to me should have prompted
you to have notified us that you desired a
change in the securities, which, unless it
were made, say in the period of thirty or
sixty days would result in the action Won
took.
In that case. unless we could prove what
we are able and ready to prove, that the Sc
cultles are good. marketable, and even ac-
cording TO the laws of your state, you could
nave taken the step with at least the appear
Rnce of propriety.
Now as to the report upon which your ac-
ton is based. that of Mr.. Shannon. This
gentleman left here aftera, personal examina-
non, which he made partly by himself and
partly with one of the officers of this com
pany, and with a gentleman interested in
the mortGaged property. which is critislzed
more than any other. MIR Shannon left here
expressing himself as entirely
Satisfied With the Securities.
The date of his departure believe, was the
e1st of March last, and we were told that he
was going directly to Albany, ard three days
later a certificate OF authority was issued in
favor of this company On the Goth of April,
fully month after evidently making his
verbal report, Mr. shannon sees fit TO make q
written report, rejecting on and crticizing
severely portion OF the mortgage securities
held by this company, and more particularly
referring to the mortgage of SliS,000 of the
North 81. Paul company. IQuote as follows
from the report:
Very little, if any, of the property can be
classed as improved. ETC., it appears that,
until recently this property was farm lands,
when it was bought mp by speculative land
companies who plated il into town lots, and
have opened and graded a few streets, but
the greater potion of it is still undisturbed
in that respect the owners evidently intend
ing 10 open new streets as fast aS lots are
sold in tie older sections Mr.. Shannon
visited lhGt locality when the ground was
covered with oyer Il foot of snow, and did
not take pains 10 find out that it covered
$500 Il4tlcd lois. with building improve
ments wcrti $4,000 insured for say, $4,000;