St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-01-04
|. ONE COMPANY LESS
AICENSED TO SOLICIT FIRE INSUR-
ANCE IN THE STATE OF
MINNESOTA.
CONCERN HAD REINsURED.
FAILS TO SATISFY A JUDGMENT
AND IS BROUGHT TO AC-
COUNT.
RECEIVER TO BE ASKED FOR.
Judge Egan Makes an Order Throw
ing the Case Into tho State
Courts.

{ Deputy Insurance Commissioner
Gightbourne yesterday revoked the Ii
cense of the Minnesota Fire Insurance
company of Minneapolis, which is the
successor of the Syndicate Insurance
company of the same city. The revo-
cation was made known to the Min
neapolis concern yesterday forenoon,
and is the direct result of the compa
nys failure to satisfy a judgment OBJ
tanned against it in the Ramsey county
courts last month.
Henrietta Hildebrand held a policy
in the Syndicate company and sued to
recover for a fire loss. The company
fought the suit on various grounds, but
judgment was given the plaintiff. The
execution was issued Dec. 3d. and re-
turned unsatisfied Dec. 81.
The law requires that when such
return is made against an insurance
company in this state, the license Of
the company shall be forthwith re-
voked. When Mrs. Hildebrand's attor-
ney, F. c. Stevens, visited the capitol
on Tuesday to report the return, 1t so
happened that he met James G. Moo
dey, the manager of the company, who
was there, and the two had an extend
ed conference. At it's close nothing
further was said about the revocation,
but on Thursday Mr.. Stevens again
came, this time making the formal re-
quest. letter was then sent to the
Minnesota company notifying it of the
action, and the commissioner waited
until noon yesterday before making
the revocation public. About three
hours after that, when the papers con-
tanning the news were already out
telegram was received from the Min
neapolis concern, stating that a misun-
Outstanding had arisen and that the
claim would be settled. When it is the
revocation will be recalled.
Assistant Attorney General Edgerton
advised the insurance department prev
iouS to the revocation that the change
Of the corporate name did not relieve
the second concern from liability for
the acts and debts Of the first. Other
wise all a company would have to do
when it suffered loss would be to
give notice of a change of name.
From the best information that is
available by the G o b e, the affairs Of
The Minnesota company seem to have
been in very unsettled condition.
While it has maintained a nominal in
dependence, it is understood that it's
risks have been guaranteed by the Cal
edonia and Niagara Insurance COM
panies, and lately by the Caledonia
alone, and at the time of the revoca-
tions, negotiations were in progress
for reinsuring all its risks in the
Springfield Fire and Marine Of Spring
Held, Mass. 1t seems to have been the
question whether the Hildebrand
loss should have been met by the Gale
donia or the Niagara company that
caused the delay in satisfying the
judgment, and brought down the revo-
cation.
j. c. Moodey, the manager Of the
Minnesota, said in Minneapolis, yester-
day, that the revocation was rank
injustice to that company, as it had
been arranged to have an extension, but
some misunderstanding seemed to have
arisen.
Meantime the case is not yet finished,
for Mrs. Hildebrand's attorney has Sc
cured an order from Judge Egan, re-
quiring the Minnesota company to ap-
pear in court today and show cause
why receiver should not be appointed
The company is composed of we'll
known Minneapolis business men, John
DE Laittre. the lumberman, being pres
ident. Manager Moodey wired to the
insurance department yesterday as fol-
lows:
c. H. Smith Insurance Commissioner, St.
Paul: Have advised attorneys in Hildebrand
case to send statement of amount necessary to
pay and dismiss proceedings, including judg
ment, and will pay same presentation, al
Though suit and judgment were against the
Syndicate Insurance company, and not against
the Minnesota Fire. Your revoling of license
has caused unnecessary hardship, and we
think entirely uncalled for Execution was
entered after attorney had made verbal agree
lnent to withhold action until we could con-
fer with another company who had reinsured
the risk and in whose interest we were acting
in defending the Such agreement was
not kept, but execution entered Immediately.
j. G.. Moodey.