The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-07-20
CAN'T DO BUSINESS IN THIS STATE
The Retaliatory Act Against Prussinn Insur.
ance Companies Enforced.

nnco Companies Enforced.
ALBANY, July 19.-Superintendent Of Insur-
ance Louis F. Payn to-day denied the applica-
ton of tho Prussian Fire Insurance Company to
do business in this State. In taking this action,
the superintendent handed down an opinion, in
which he quotes the amendment to the insur-
ance law passed by the Legislature of 1896, as
follows:
Whenever It shall appear to the Superintendent of
Insurance that permission to transact business within
any foreign country is refused to a company organ.
ICED under the laws Of this State. after a certificate Of
the solvency and good management Of such company
has been Issued TO It by the said Superintendent, and
after such company has complied with any reasonable
laws of such foreign country requiring deposits
OF money or securities with tho Government Of
such country. then. and in every such case. the
Superintendent shall forthwith cancel tho authority
Of every company organized under the laws of such
foreign Government and licensed to do business in this
State, and shall refuse = certificate OF authority to
every such company thereafter applying to him for
authority to do business in this State, until his certi-
cate shall have been duly recognized by tho Govern
ment OF such country.
Superintendent Payn adds:
Tho arguments Of counsel in behalf Of tho
application fall short of presenting the whole
case and make little or no allusion to several
material facts bearing upon it. They do not
state fully the Objectionable features in certain
rules and regulations recently established by the
Prussian Government, which manifestly have
compelled some Of our largest, best established,
and most responsible American companies to
substantially abandon the carrying on OF their
business in that country, thereby subjecting
said companies to great loss Of capital invested
previously granted. with full knowledge on the
part Of the Prussian Government. at the time Of
granting such permits. OF the conditionsa and man
nar Of transaCtinU fhnir hna innaQ Tnnra ~ lala n
culiar to said companies, which rules and regula-
tions thereafter established by said Government
sible the continuance of business without any
stated or apparent reasons for such new rules
said companies. were and arc calculated to work
manifest and equitable advantages to a large
share of their policy holders and no advantage
to said companies except the popularity gained
on account OF such conditions.
In this way the Prussian Government has dis
criminated-,l use the term advisedly-agains:
some OF our largest and best insurance compa-
MES. TO the extent OF practically driving them
out of the realm. after having made large In.
vestments in the low Understanding stock OF
said Government, under its requirements and
in real estate there, and in establishing their
business, all on the faith of permits which had
been adyisedly granted, and by said companies
in. good faith supposed to he inviolablc.
ut is one Of the triumphs of civilization that
by comfy among nations on tho subject of in
surance such results can be effected which
otherwise would be impossible. and the motive
TO foster and encourage such comfy on all suit
able occasions Is very strong; nevertheless. 1t
should not De forgotten that comfy Is OF little
value except 1t be mutual, and when 1t is re-
fused on theon me side, 1t may sometimes become
necessary to withhold 1t for q time on the other
as q retaliatory measure in order the sooner to
bring about that mutually necessary to Its
valuable existence.
"Such, / think, is now the case with respect to
the present attitude of the Prussian Government
toward our insurance companies, and our Legis-
lature of 1895 must have been strongly, i'm,
pressed with the same idea. Chapter % OF the
Laws of 1896 is manifcstly a retaliatory act, and
IL Is claimed and conceded that, although gen,
eral in its terms, II was simed at the Kingdom
OF Prussia. Rctaliatory legislation is never pre-.
sumed to have been enacted except, in extreme
1t Is my duty to execute the law as i find 1t, and
not TO %criticise nor question the motives for its
| enactment