GERMANY. AMERICAN LIFE INSURANCE COMPANIES IN PRUSSIA. No. 624.] Mr. Jackson to Mr. Hay. EMBASSY OF THE UNITED STATES, SIR: Referring to previous correspondence, I have the honor to inform you that I have to-day received a letter from Professor Dr. Klein, of Göttingen, in which he says that the expert report of the matter of the readmission to do business in Prussia of the New York Life Insurance Company is expected to be put into the hands of the Prussian minister of the interior on the 28th instant, and that I have communicated this information to Mr. G. W. Perkins, the second vicepresident of the company in question. I have also to inform you that the representatives of the Mutual Life Insurance Company have been put in communication with Dr. Klein, for the purpose of presenting their case to him, in response to a request made by me at the foreign office. All those who have seen Dr. Klein are convinced of his fairness, and the New York people are very sanguine as to the nature of his report in regard to their company. About its effect upon the governmental authorities, however, they are more in doubt, and I understand that a suggestion has been made to them informally that the matter not be pressed, as it was proposed to introduce the long-expected imperial insurance bill at the next session of the Reichstag. The companies are properly not willing to let the matter rest, the provisions of the bill not having been as yet made public, and as there is some reason for supposing that certain members of the Prussian Government entertain hope that the whole question of insurance (life, fire, etc.) will be taken over by the Imperial Government and that a governmental monopoly will be made. Consequently so long as the terms of the proposed bill, to which frequent reference is made by the press, are not published one can not help feeling that there may be surprises in it. I have, etc., JOHN B. JACKSON. Mr. Jackson to Mr. Hay. No. 633.] EMBASSY OF THE UNITED STATES, SIR: Referring to my dispatch No. 624, of the 25th instant, I have the honor to inform you that in Saturday evening's Imperial Gazette there was published the text of the projected imperial law in regard to private insurance undertakings. Representatives of the Mutual and New York companies have called on me to-day in regard to the bill, and I believe both companies are having translations prepared for communication to their home offices. The bill I have not read myself, as I have not a sufficient technical knowledge of the subject to make it worth while my taking the time to do so. The general impression in regard to it seems to be favorable, and it is noted with particular satisfaction that the subject of concessions is put in the hands of the chancellor of the Empire and not left with the individual governments. To my regret, I am able to send the Department only one copy of this bill, as on sending to the office of the paper in which it was published in order to obtain additional copies the messenger was informed that the issue was already sold out. I have, etc., JOHN B. JACKSON. (The translation of the bill referred to above is omitted because of its length.) Mr. Jackson to Mr. Hay. No. 648.] EMBASSY OF THE UNITED STATES, SIR: Referring to my dispatch No. 624, of the 25th ultimo, I have the honor to inform you that on the 29th I presented the representatives of the New York Life Insurance Company to the Prussian minister of the interior, and that since that time these gentlemen have been in almost daily communication with that official or those under him. From these gentlemen I understand that every opportunity has been given them to present their case in a thorough manner, and that an agreement has been made according to which two of the subordinates of the Prussian ministry in question are to go to New York early in the new year in order to make an examination on the spot of the business methods of the company. This company has admitted that it had been impossible for it to comply with the Prussian regulations heretofore, but that changes and improvements had been made in its system, and that now it could comply in every point. I have also to inform you that the embassy has been able to obtain the desired facilities for the representatives of the Mutual Life Insurance Company of New York, and that they have been informed that Professor Klein would receive them at Göttingen to-day. Referring to my dispatch No. 633, of the 28th ultimo, I have the honor to inform you that last night's North German Gazette calls attention to the fact that no mention was made of the imperial insurance bill in the recent speech from the throne, and adds that the bill was published in the Imperial Gazette for the purpose of subjecting it to public criticism, but that it is not probable that it will be submitted to the Reichstag at its present session, as the Imperial Government will await the opinions of the insurance advisory council and other qualified bodies before deciding definitely upon its terms. I have, etc., JOHN B. JACKSON. P. S. Since the foregoing dispatch was written a letter has been received by Mr. Jackson from Mr. George W. Perkins, second vicepresident of the New York Life Insurance Company (see instruction No. 589, of September 27, 1898), in which he says, "Allow me to once more renew my thanks for the many, many ways in which you have been of assistance to Mr. Weeks and myself in our trials' and tribulations," and incloses the statement which the Prussian minister had authorized him (on the eve of his return to New York) to give to the newspapers, of which the following is a copy: The North American Life Insurance Company, New York, has, since some time, through two representatives, entered into verbal negotiation with the minister of the interior. We have it on good authority that the officers of the company have been received in audience by the minister of interior, on which occasion opportunity was offered to them to tender proof that the company represented by them is now in a position to comply in every respect with the requirements of the Prussian supervising authorities. We further understand that several conferences have taken place between the officials in the ministry of the interior. In consequence of this, a rumor has been spread that the Company New York would, solely on the basis of these negotiations, be readmitted to do business in Prussia. This rumor, however, is unfounded, the fact being that the Company New York has requested the minister of the interior to delegate two officials of the ministry to New York, as early as possible at the beginning of next year, in order to examine the company at its chief office. It is therefore evident that the company can not petition with the minister of the interior for an immediate readmission for resumption of business before this examination shall have taken place. Mr. Jackson to Mr. Hay. J. B. J. No. 658.] EMBASSY OF THE UNITED STATES, SIR: Referring to my dispatches Nos. 624 of the 25th ultimo and 648 of the 8th instant, I have the honor to inform you that the representatives of the Mutual Life Insurance Company of New York called at the embassy this morning to inform me that they had been received several times by Professor Klein and his associates at Göttingen, and that they had been able, as they thought, to explain their business system to the satisfaction of these gentlemen. They, too, obtained a favorable impression of the thoroughness of the examination which has been made by these experts, and of the fairness which they have shown and the desire to fully understand all the questions at issue. The political side of the case, if there be one, can not of course appear until the report has gotten into the hands of the Prussian ministry of the interior again. I have informed the Mutual people, in a general way, of what was done by the representatives of the New York Life Insurance Company, and have assured them that I would gladly obtain for them the same facilities for presenting their case to the Prussian officials should they desire to have me do so. I have, etc., JOHN B. JACKSON. Mr. White to Mr. Hay. No. 758.] EMBASSY OF THE UNITED STATES, SIR: At the close of the recent visit made to me by Baron von Richthofen, referred to in my dispatch No. 757 of this date, he referred to the fact that the minister of the interior, Herr von der Recke, had decided to send commissioners to New York to examine the system of the insurance companies which have so long been asking for such a commission (see dispatch No. 648 of December 8, 1898), but that the Government had decided not to accept the proposal of the companies to pay the expenses therefor, preferring itself to pay the expenses of any commission which it might send. I am, etc., ANDREW D. WHITE. The German Ambassador to the Secretary of State. GERMAN EMBASSY, February 27, 1899. MEMORANDUM. The German Government is sending two officials, counselors of state, Freiherr Marschall von Bieberstein and Mr. Hoppe, representing the ministry of the interior, to the United States to confer with the heads of the three life insurance companies, the Mutual, Equitable, and the New York Life, to agree on a method which may enable them to resume their business in Prussia at an early date. The Prussian Government will pay the necessary expenses. No. 208.] Mr. Hay to Mr. von Holleben. DEPARTMENT OF STATE, Washington, February 27, 1899. EXCELLENCY: I beg to thank you for your kindness and courtesy in communicating to me this morning, through Baron Sternburg, information as to the intention of the Prussian Government in sending agents here to settle questions of the management of insurance companies in Prussia. SIR: I inclose herewith, for your information and the embassy files, copy of a memorandum' furnished to this Department by the German embassy stating the intention of the German Government to send two officials to the United States to confer with the presidents of the Equitable, the New York, and the Mutual Life Insurance companies with a view to reaching an arrangement by which these companies may be enabled to resume business in Prussia. I have communicated this information to the presidents of the three companies named. I am, etc., JOHN HAY. 1 Printed apra. No. 770.] Mr. White to Mr. Hay. EMBASSY OF THE UNITED STATES, SIR: The time has perhaps arrived for a summary statement to the Department of the general progress made within the last half year in relation to our commercial and business interests in Germany. As regards the American insurance interests, which have been so long under discussion, the prospect seems distinctly encouraging. The German Government, having delayed attention to the question so long that it seemed practically closed, yielded some time since to the request of the companies, made through the embassy, to allow a new presentation of the American case before the German special commission of experts, and has recently made the further concession, so long and so earnestly sought by the American companies, of sending a special commission to the United States for the purpose of examining into the system and methods of the companies at their headquarters in America. SIR: The telegrams in the press have doubtless informed you that the Imperial Government have carried out the intention, which I announced to you some time since, of sending experts to the United States for the purpose of studying the methods of sundry American insurance companies which desire to do business in Germany. A few days since these gentlemen, Messrs. von Knebel-Doeberitz and Marschall von Bieberstein, were presented to me by Mr. von der Recke von der Horst, the Prussian minister of the interior. I found them to all appearances competent and conciliatory, and trust that their stay in New York may result in removing the distrust which prevails in some controlling circles here as regards the manner in which our leading insurance companies conduct their business. I am, etc., Mr. Jackson to Mr. Hay. ANDREW D. WHITE. No. 989.] EMBASSY OF THE UNITED STATES, SIR: I have the honor to acknowledge the receipt by the embassy, this morning, of your cipher telegram, as follows: The Prussian commissioners have about concluded their examination of the insurance companies in New York, and it is understood their report will be very friendly to our American companies. It is to be hoped that the report will be favorably received at home, and that it may be the means of reinstating these companies on a solid foundation. Whatever you can properly do within your sphere to bring about |