New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-08-20
TO DRIVE OUT AMERICANS
PRUsSIA'S PLAN TO PROSECUTE UNITED
STATES INSURANCE COMPANIES

| DEMANDS MADE by THE GOVERNMENT WITH
WHICH 1T Is PRACTICALLY IMPOSSIBLE TO
coMPLy-JEALoUs GERMAN COMPANIES
| RELIEVED To re BEHIND THEM
The struggle between Yankee push. as illustrated
| in the great lite insurance companies OF this city,
and German conservatism. as evinced In the acton
| OF the Prussan Ministry last Friday In canceling
| the concessions granted In 1886 to the Mutual Life
Insurance Company OF this city. Is arousing the
attention OF life insurance interests generally THIS
action OF Prussia by no means unexpected by
| those companies which have been doing large
business In that part or the German Empire. 1t was
only about year that the Equitable Lie Assur-
| ance Society OF this city voluntarily withdrew al
its business from Prussia after some years OF con-
test against Governmental red tape and after re-
fusing to comply with exact.ons which, to that cor
| poration seemed intoerant and encroachment
| upon the management OF It's affairs TO which no
company would submit
| The New-York Life Insurance Company OF this
| city Is another of the great American insurance
| bodies which has been passing through similar
| experience Up to the present time the New-York
| Life has succeeded In pacang the demands OF the
| Prussian Government and It Is hopeful of meeting
| the exlgences OF the future. But there well
! informed insurance who shake their heads
| obviously the problem.
CAUSE OF THE CLASH
The cause of this clash between the great New
eminent is said by one of the best-lnformed in
| surance officers here to be the jealousy aroused
| among insurance men throughout Germany by the
| advanced methods pursued by American companies
In building up their bu ,nenss abroad. In conse-
quence OF what may be summed up as Amerjcan
! push 1t was not long before New-York insurance
corporations, NewYork officials say were getting
more business In Prussia than al the insurance
companies of that country put together.
HAD the Equitable. the Mutual and the New
York" said insurance authority yesterday,
been called upon TO deal only with business
| lations their officers declare that no difficulty
would have been encountered. But the concessions
from the Pruss.an Government proved TO be
grant for the conduct of business with string
attached to II. This meant that the Government
insisted on exercising a supervision OF the com
panes affairs which seemed, at least to the
Equitable. to border very closely upon being in
quis.torial. Demands for detailed statements
were made. to furnish which would require n
| trely system of bookkeeping besides entail
Ing complications for years. which could not pos
sibly be complied with.
OTHER COMPANIES JEALOUS.
ITO what extent this system was carried out in
compliance with the desire nstigaton OF the Ger
man companies which had lost so large a volume
of business Il not exactly known Some well-in-
formed insurance men attribute the exactions of
the Prussian Government to the pressure brought
to bear upon it by those companies The best Illus
ration of the general situation probably lies In the
history OF the experience Of the Equitable Life AS
surance Society in Berlin. All concessions TO trans
act business must be obtained by foreign corpora
lions from the kingdoms and princpalitIes free
cities OF the German Empire, and not from the
central Government Some six years ago. having OBJ
tanned It's concession some time before and being
then prepared to push It's business extensively in
Prussia the Equitable put up large and fine struct
ure OF its in Berlin. at Friedrich and Lelpsiger
Tho hitil1 ding and iS chat
smaller than the company's headquarters In this
city 1t not long before the company began to
find out what 1t had got tag TO Its concession.
Demands for statistics bearing on the companys
business began to come in and these soon Increased
In frequency and in volume. The Prussan Gov
eminent arbitrary and exorbitant In its de-
mands IT made exactons which equivalent.
in the company's eyes, to demanding that II should
keep the books OF the corporation after system OF
its own. This course regarded direct and
uncalled- for interference with the companys well
and long established business methods. The climax
came when the Government finally demanded that
the company should invest one-ha.f of It's earnings
in Prussian securities. These were perfectly good,
but OF low rate of interest Outside OF that fact.
however, the company expressed preference to
invest all its earnings as 1t saw ht especially since
the exercise of its own judgment had proved some
what satisfactory after some forty years OF ex
perence.
HAD ENOUGH OF PRUSSIA
THE result that about a year ago the Equita
bic decided that 1t had had enough OF Prussian
governmental exactons. and 1t accordingly gave the
Government formal notice that 1t would do no more
new business in Prussia. The company now has the
building on its hands. 1t retains its business In
the Hanseatic cities where there Is no offensive
Government interference"
James ". Alexander the vce-presdent OF the
Equitable had only this to say yesterday about the
matter: THE exactions of the Prussan Govern
ment. in our opinion, were so unfair and so incon
sistent with a proper conduct OF business
whole by that more than year ago we deter
mined TO renounce concessions in Prussia and
close out business
The New-York Life Insurance Company has met
a similar experience 80 FAR as the policy OF the
Prusslan Government Is concerned. But IL has pur-
sued a concliatory course and has tried to satisfy
the demands of the Prussia1 Government. The
third vice presdent George w. Perkins. who has
charge of the agencies Of the company, gave the
following information upon the situation yesterday:
"Our relations with the Prussian Government are
friendly. and we are trying 70 meet Its require
ments in every way possible. The present condition
OF things came into existence about year ago.
when the companies here received formal request
about yard long for Information Of statistical
cbo YER