New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-01
EXPECTED LICENSE LOSS
Mutual ReserCe Not Surprised at
Ban State Action.

ance Company, Of this city declared yesterday that
they we're not in the least surprised the news
sent out from Boston that the cOmpanys license
to do business in the State of Massachusetts had
been revoked by Frederick L. Cutting. Commits
-sonGr Of Insurance OF Massachusetts They said
NAT they had been warned on November IS that
the permit would be revoked on November . be
cause OF an alleged refusal by Charles W Camp
creJary of the company, permit an examination
of the books.
Secretary Camp says that he did refuse TO
permit such an examination. The demand for the
books and cash Of the company was made No
vember 10 by Deputy Insurance Commissioner
Hardson. without any previous warning that the
examination would be requested Twenty-four hours
time in which to refer the demand the board of
directors Of the company refused and the next
thing the company heard was the ten days warn
ing that the license would be revoked
1t said yesterday that the company would
take 10 steps against the Massachusetts Commits
sioner and would withdraw from business in that
State II is said that the business OF the company
that State would not warrant the expensive legal
fight such successfully waged in Wisconsin
a few years ago The company's entire new bust
ness in Massachusetts last year amounted 70 less
than premium income Of $1,000. it was declared
/ There has been considerable complaint IN insur
ance circles the last few months over the arbitrary
dema nds of commissioners OF outside States. They
| insist on immediate examinati tons at the busiest
! time of the year, when the officers are engaged
working up their annual reports. 1t Is said that at
! the time DIRK companies are at
their own request being examined by the New
/ York State Insurance Department II examiua-
ton is necessary, they prefer to have it at the
hands their own State officials. A few weeks
ago the United States Life received notice from
Commissioner Dearth. of Minnesota. that he was
coming here TO examine the company. The com
parv is now being examined by the New-YorS In
surance Department and its certificate Of financial
[ soundness will doubtless be accepted by other in
| sUrance commissioners
/ At the Offices OF the Mutual Reserve Company,
Duane-st. and Broadway. officers gave a detailed
account Of recent visit of Deputy Commissioner
HardisOn. He was accompanied by G. H Wolfe,
an actuary Of this city, who is now trying IN the
courts 70 collect charge Of s2OOO for the exanina
tion OF the books OF the Prudential company some
time ago and Mr.. Brown. examiner. Deputy
Harrison. II is said. presented no credentials and
asked for the president OF the company. Frederick
A. Burnharn. Mr.. Burnham away from the
office that day, and ViCe-President George d
| EIdrdge was in Europe on company business
Then Mr. Hardison asked for Charles ". Camp
the secretary.
He announced that Messrs Wolfe and Brown
were ready to begin an examination OF the COM
pany on the behalf Of the Massachusetts depart
ment and asked that the books and cash be turned
over them at He told that Secre-
tary Camp had power either TO grant or re-
fuse such an examination, and that the corporate
powers were vested solely the board OF direc-
tors who would meet the following day when the
matter could be brought up. The three examiners
then withdrew and the following day the warning
from Commissioner Heating was received.
A letter which Mr.. Camp has sent 10 Commits
soner Heating gives the company's stand IN the
matter. 1t reads in part follows;
I repeat that the allegation that ever refused
such an examination is absolutely untrue. Counsel
for the company. both IN this city and in Boston.
who have been consulted in relation the matter
advise II that under the facts I have detailed
them there has been refusal In law OF
animation OF the affairs of the company such az
contemplated by Section of the Insurance Law OF
Massachusetts TO justify a revocation by the In
surance Commissioner of the uCence of the com
pany, and they further advise that under The pro-
visions of that section upon petition 10 the SJI-
preme Court OF Massachusetts, the company could
obtain decree enjotning you from taking the
the company. however after careful deIiberation.
have reached the conclusion that the interests OF
the company will be best subserved by refraining
from any legal action and permitting you take
! whatever course see 1T while at the time
the company strongly protests against the threat
ened revocation OF its iCenCe the ground stated
IN your letter, for the reason that such action will
be Illegal arbitrary and unfair both on the facts
and the law.
The letter charges that the demand for examt-
nation was not made in good faith and expresses
surprise that the Insurance Department Of -AIassa
chusetts should be the first Of the conservative
States 10 depart from the principle Of reciprocity
between State insurance departments It concludes
with an emphatic protest against the revoking OF
the company's HcenCe.