New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-02
Directors Decide Not to
Loan on Property
So Insured
Cancels Policies With
9 American Concerns
Senator Frelinghuysen's
Company One of
Those Affected

controlling SloO,OOO,VOV Az '-N
ance risks, will hereafter lend no
money on property insured IN any
company which reinsures with German
companies. Furthermore, any polcie'
in such companies in which the Law
yers' Mortgage Company is interested
as lender will BE cancelled.
The decision of the company TO par
all companies reinsuring with German
companies was made at meeting OF
the directors on Wednesday, when 'hls
resolution was adopted;
"Resolved, that tho president be and
hereby is authorized TO cease accept
jng FIRE insurance in any American
FIRE insurance company which rem
.,,es anv part of its risks in German
insurance or reinsurance companies
Act TO Guard Peoples Money
This action of the directors, Presi-
dent Richard NJ. Hurd said yesterday
followed an investigation into the
srencisl resources of the German COM
panies doing business in the Ohl'ea
States, and a decision that such com
NAMES are weak, and do not anoro lile
n1otection trustees Of other people
money are bound in honor to demand
n conformity with this decision, the
raro.s Of nine American companies
which reinsure some Of their business
u,i,h German companies have been
,,r,cken from the list of lis companies
whose policies are acceptable TO 'he
LAWYERS Mortgage Company
Tbe companies affected include the
r,snrorca Company of the State OF
pannsvlvania, Of which Senator Frel,Is-
bnvsen. of New Jersey, Is a stoeKhoIuer
ana director. Mr.. Frelinghuysen IS re.
snonsihie for tentative amenomehe
tp the trading with the enemy act no"
before the Senate Committee on Coih-
MERGE by which German companies
would be permited to continue writing
insurance in the United States
The Companies Affected
The other companies AFFECTED are are,
The German American, OF Nem go
Citv; the German Alliance, Oh pun ~
the Germsnia, of New ioIf' t M;,u,sn-
81 German, of Buffalo; the Mll"@u
ias o ~ milwaukee,; the Phenixi Oh
Msr+ford: the Connecticut, OF mart
"a and the Springfield FIRE anu
Marine. Of Springfield, Mass
r. "a nossible that other companies
Iii ha added as soon as answers arc
a;yad "a the circular letter sent oue
80 DAVIS ago asking whether or NOV
SOM c% company does any bust
ness with German companies: -
sTbe campaign in The Tribune ana
pxos;dant Wilson's action IN DarrlhB
carmsn insurance companies from the
orina held." said Mr.. Hurd yestef-
dav. "called my attention 10 tne ma.,
,sr Of fire insurance. 1t seemed 70 tho
tbst az a matter Of cold business tno
nolicy Of any company oepehSCims -,
any way on reinsurance WIN Hei man
conpanies was not desirable
&ws have list Of lis companies
whoss nolicies have always been ac-
nntsbls In us, These companies were
fnctad because Of their hnanclal
.trength. their standing and their
s.ords To all of these circular IeI,
w vas sent asking If they relnsureo
Nv 81 their business in any herman
insurance or reinsurance company.
81 have heard from over 100 OF these
.ornanies. OF this NUMBER more ma
ore-third have in the last rev mohins
csneelled reinsurance treaues WIN
Gsrnan companies. Such companies "a. %
have not cancelled their trehtles , NJ,
. German companies we are e
to-day. If any OF the companies rnI
Layo not vet replied to my inquiry re-
no,t that they are tied up with German
ror1rsniss. such policies OF theirs as
~. 1ev have in our vaults will De can
celled.
Position Is Endorsed
"sone Of the companies which are no
longer on our list OF accepVaoIe
dorse our position. here iol e;'- IN
thinks of our position: Broad.
.sking. your attitude 10 worthy OF
ry,rmendation both from a pusihess
"a nstriotic standpoint He does not
CO.,, wbv he continues TO do business
~ German companies, however
othars who have cancelled reinsurance
.,nat;es with German companies go
fn~tber Here is one president VINO
saws ne cancelled his treaties as
matter Of safety. 81, ..
"'We are glad that man wrote, thae
vou are concerned in a situation "h'eh
ia fraught with so much Danger.
al was interested 20 read senator
Frelinghuysen's argument IN FAVOR %
allowing the German insurance CON oIi.
NAMES 10 continue doing business he Ie
His main argument is the neeu OF PaU
tection 10 property holders, tho holders
~ mortgages. etc. II is because we arc
holders of an immense volume OF mort
cages and desire protection that We
have taken this action.
Saws Germany Is Bankrupt
Germany to-day is bankrupt, and
without doubt the German insurance
companies are bankrupt also. Because
,hev know this is the case German
Americans are discriminating against
German companies. This am told by
the president OF one Of the largest IN
surance companies in New YORK. WIN
out doubt the German fire Insurance
companies have been compelled 20 give
up good securities and take IN their
place imperial German government
bonds. When this war ends these Ger
man bonds, now totalling nearly lOO,-
600 900 900 marks, will have 20 DC
sealed down or repudiatcd, which will
mean the bankruptcy or semi-bank-
ruptey Of the insurance companies.
ITo assert that reinsurance OF sound
American companies in such companies
is neeessary or helpful il an sbsurdity
at Is true that under United States
laws these German companies are com,
peliei 20 keep on deposit, either with
American trustees or Insurance an.
thorities Of the various states, sccurI,
tiea or cash sufficient % cover Amen.
can risks in normal times. No Prov,
sion. however, is made for cOnhagra-
zion rigks or unusual loss from any