New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-02-18
RETALIATION BILL SIGNED.
r.,u GOVERNOR TELLS WHY HE APP
PROVED IT.

PROVED IT.
., THINKS 1T is JUST BUT NOT RETROACTIVE,
AND HE CONSIDERS 1T IMPROBABLE THAT
THE STATE WILL HAVE OCCASION TO
APPLY IT AGAINST ANY FOR
Elm GOVERNMENT
Albany, Feb. T.-Governor Morton to-day signed
A.semblyman Husted's bill requiring the State Su-
nsrintendent Of Insurance to refuse to issue licenses
20 insurance companies of foreign countries whose
countries have shut out New-York State companies
from doing business therein, and also revoke the
licenses Of companies OF such countries already
doing business in this State.
The bill was introduced early in the session the
instance Of the largest three American life nsur-
ance companies the principal Offices Of which In
New-York, q retaliatory measure against the
Prussian Government That country some time ago
by its stringent rules made It practically impossible
for the New-York companies to do business there.
and the Equitable withdrew. This was followed by
tie expulsion of the New-York Life and Mutual Life
insurance companies under DEGREES OF the Minister
of the Interior of Prussia
Superintendent Pierce under the provisions of the
lew signed to-day is compelled to revoke the IL
&C ses to do business in this State of the Prussan
National and Aachen-Munich Fire Insurance COM
panies Of Prussia and to refuse the application OF
the Magdeburg Fire Insurance Company for per-
mission to do business in this State.
In signing the bill Governor Morton fled the fol-
lowing memorandum:
State of New-York
Executive Chamber. Albany, Feb. II.
Memorandum filed with Assembly bill entitled
IAN act 10 amend the Insurance law relative to the
csnce.ling Of the authority Of foreign companies
This bill seeks to amend section SO OF the !nsur-
ancs law by adding provision for the cancellation
of the authority Of foreign insurance companies.
whenever company organized under the laws 81
this State is excluded from foreign country ana
IS prohibited from transacting business tne n
after its compliance with reasonable laws reiatns
TO deposits OF money or securities with the ooVerh-
ment of such country. .,,. ,,,
The immediate occasion Of the passage OF THIS Dil
is said to n be the or life conn
panies in transactng their business IL certain am
foreign country; and It Is alleged ana hO fso ue
to comply, with the demands made upon them:
but that notwlthstandng this ScmG sro tney
acting business in that country. They had been
i IS not Claimed thai t6ey had Jailed to comply with
any of the requirements imposea upon them by the
der the circumstances seems 70 justify some action
BY the Legislature ana this n was plgParSse e I0 0
surance Department to properly prpteS, our nome
corporations by recurring the b nryeg 20 Of
transacting business here when the like privlese.
business in foreign country.
RETALIATION DEFENDED.
While retaliatory legislation is not usually to be
commended 4, should be enacted for purposes oil
self-defence and the protection or our business III
terests whenever appears that any other state OF
country is unwilling to accord 10 our citizens rea-
sonable reciprocal privileges within its domin-
Ions sn I, seems only reasonable that for W
egn corporations should not be pernteo,
10 do business here when The, Government ear
under which they are organized deies 70 oo az
the exclusion OF our companies under the crcuii nm
stances indicated would imply lack Of pa'rr9usn e su
iature has it, by the vote OF large ma rs b
legislative
think proper and should be approySG 600
broad: thai It gives the superintendent Of the In
surance Department discretion beyond me con- i
be harmf,I, TO the business interest OF the state
our State already has we-defneT pocy nydas
ing foreign insurance companies Inc Jaw ple'iu ny
that the Superintendent may refuse to issue any
certificate TO foreign corporation H. IN IA erssfs
OF the people Of the State rms vests 'he nu 80,
intendent with very large discreto, anu rartcate to
CORPORATION applying TO do business IN ms o,ace
BUSTING eus eer,eaes Foreign insurance companies
are required 10 make .arge uePosIts , pe' rv,erin
tcndent is authorized examine the assets DOCKS
accounts and general condition or such corpo ~ sr
een corporatior wherever located. investigate ana
examine its affairs and condition am c ge,ses or
neglects to comply with the law or allow such en-
The cer,acate Of authority granted to foreign
corporation remains in force only one
.1Ssd mai the capital securities and invest
,nen.s remain secure and that the company may
he safely intr1isied with continuance OF lts tu
thority TO do business. ana Wheh ne IL ~ ,1Sca,e
/, is his duty to grant renewal OF such
Srecnc taxes are also imposed upon the paIIiieSS
Of certain foreign insurance corporauVhs NM IN ir
devoted 10 special purposes me sectoh VI si i "a
,,ttch This mn seeks 10 amend relates 10 itcIP'Ocn
rec, remeats be tween this State ana other STATE
concerning burdens which may be imposed upUn s ~
sUronre' corporatio organized under the laws Vi
MS State doing business in othef states anu ~
cures the Superintendent to impose upon IIsul
Nrorafions OF other States the same burdens when
are IMPOSED upon New-York corporations uoltg
i,s,,ess in snch States. The amendment now uiiuei
con Liberation extends this principe 10 oui IeIato
,,-i,b foreign governments by requiring inc 49,
iation of the authority OF foreign insurance coiipa
MES whenever our companies are Toy PEI or
do business In the country "heic sum iO'N'7'' w.
poratiOns OrSanizei. o,,.os
Cbiec,ion Is also made 10 this Dill tnat II s'.ss
= Iteration 10 the Superintendent beyond me
consideration OF the subject 81 4 uePos' Va "!
ar securities with foreign Government by New
Vork company and that II such government useiiis
=, nroner 10 Impose other limitations or restTlcloIs
as Condition Of carrying on business tuete az
80 comnany declines 10 comply with sucn auuI-
t;onaI limitations and restrictions ana Wl'nuid"s
trono auch country in consequence thereof II may
anry to the Superintendent Tor an oiici CdnceilHs
ne authority OF every company orgdn'Zed uhneI
tba US of such foreign Government ana lcenscu
10 10 business in this State and mat Il VIII there
ION he mis- imperative duty TO cancel such au-
thorty Possibly the bill IS literally capable OF this
Construction but New-York company wnlcn Is
unwilling TO comply with reasonable reguatons
,m,'osed nv a foreign Government. even in addition
~ those mentioned in this bill. will be entitled TO
little consideration by the insurance department.
and will receive scant sympathy from our people
THE bill is evidently designed 10 reach only extreme
cases and IL is likely 70 be only such cases that
a practical application of the law shows that It is