Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President, Transmitted to Congress December 2, 1895, Part I

Mr. Runyon to Mr. Olney.

Embassy of the United States,
Berlin, August 31, 1895. (Received September 13.)

No. 352.]

Sir,: Referring to my dispatch of the 22d instant, No. 345, on the subject of the revocation of the concession to the Mutual Life Insurance Company of New York, I beg leave to add in continuance of the history of the matter, which I now regard as closed, that on the 27th instant Mr. McClintock, actuary of the company, addressed and sent to me a communication, a copy of which is herein inclosed, the object of which was to get me to urge upon the authorities the desirability of a decision before the 1st of September next, if the order withdrawing the concession was to be revoked either permanently or temporarily. A copy of this communication was duly sent without delay to the foreign office.

On the evening of the 29th instant the Department’s cipher telegram, as follows, was received:

Runyon, Ambassador, Berlin:

Private advices from representative of the Mutual Life Company in Prussia indicate favorable outcome if views of the United States vigorously and persistently put forward. This you are authorized to do with good judgment and discretion.

Adee, Acting.

The instruction therein contained was at once observed by communicating its substance to the foreign office the next day, and today I sought and obtained an interview with the secretary of state for foreign affairs on the subject and found that the order in question is not to be withdrawn. Baron von Marschall promised to give me in writing the reasons for the action complained of.

I may say that these reasons are (first) that the company’s financial report of assets is not satisfactory, in that securities are set down at market value instead of at the cost price, and that real estate bought in under foreclosure is put down at a valuation of the property of which there is no evidence, and which, therefore, may be too large; and (second) the declaration of the company that it can not comply with the regulation made by the Prussian authorities and which by its terms is applicable to it.

I have, etc.,

Theodore Runyon

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[Inclosure in No. 352.]

Mr. McClintock to Mr. Runyon.

Berlin, August 27, 1895.

Sir: I am not aware of the exact position of the negotiations now going on concerning my company, but desire to set before you, and through you, if possible, before the German Government, the imperative necessity which exists that whatever can be done for the relief of the company should be done now.

The notice to discontinue new business on September 1 was published widely by the Ministerium des Muson on August 16, eleven days ago. As it takes effect next Sunday, we have four more days only. Very great injury has already been done, owing to the distrust produced by the decree. Not only is the high public standing of the company assailed, but that good will, built up by nine years of successful business in Prussia, is getting undermined, which, by the influence of one man’s example upon another, enables fresh insurances to be obtained with ever-increasing ease. The very agents themselves, in various parts of Prussia, rae daily receiving and yielding to inducements to engage in other life, companies. The company has as yet said nothing to its agents, but must send word to them on Friday at latest to do no more business after Saturday, and must also inform all policy holders of the discontinuance of its concession.

If, therefore, these remaining days pass without at least a temporary recall of his order by his excellency Minister von Köller, it becomes fully and finally effective as destroying our business in Prussia and injuring it in other countries. Thereafter, should a new concession be granted at any time, it would be necessary to begin de novo under worse conditions than in 1886. I omit on this occasion any further expression of the indignation felt by all connected with the company and by others acquainted with the circumstances, Germans as well as Americans, concerning the decree itself.

Yours, most respectfully,

Emory McClintock,
Actuary of the Mutual Life Insurance Company of New York

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