Mr. Runyon to Mr. Olney.

No. 345.]

Sir: I have the honor to report the receipt of the following cipher telegram from the Department of State yesterday:

Runyon, Ambassador, Berlin:

Department informed that the Prussian Government on 16th instant, in advance of expected discussion, revoked concession Mutual Life Insurance Company, to take effect September 1. If this report be correct, you are instructed strongly to represent injustice of proceeding in view of our previous representations and of the willingness of company to confine business in Prussia to plans approved by the Government.

Adee, Acting.

In accordance with the instructions thereby given, I without delay asked Baron Marschall von Bieberstein, the Imperial secretary of state for foreign affairs, for an interview in reference to the subject, which he accorded immediately.

In the conversation, which was of considerable length, I made strong representations against the proceedings referred to in the instruction. I had previously—on the day before—taken occasion to bring the subject before him, but at that time was without instructions from the State Department on that particular head. I may remark that in the previous interview which, under instructions, I had at the foreign office as to the company (report of which has already been made), Baron von Marschall was not in charge, but was absent on his vacation. In the conversation yesterday he at once promised to take up the matter, and I have reason to expect that he will without delay examine into and consider it.

On the same day after my interview I sent to Baron von Marschall the note (a copy of which is inclosed) which I had in course of preparation when his reply to my request for an interview was received.

I have, etc.,

Theodore Runyon
.
[Page 441]
[Inclosure in No. 345.]

Mr. Runyon to Baron Marschall von Bieberstein.

The undersigned, ambassador, etc., of the United States of America, has the honor to inform his excellency Baron Marschall von Bieberstein, imperial secretary of state for foreign affairs, that on or about June 27 last, acting in accordance with instructions from his Government, he presented to the imperial foreign office the representations of The Mutual Life Insurance Company of New York with regard to certain requirements made of it by the Prussian authorities under penalty, on noncompliance, of withdrawal of the concession granted to the company to do business in Prussia. To the memorandum then left with the foreign office, which contains a statement of the matter, the undersigned begs to refer. Subsequently and on the 9th of July last another communication was made to the foreign office by the embassy on the same subject, to which, also, reference is hereby made.

The undersigned is informed that the representatives of the company, its counsel and actuary, who came from the United States and who were anxious to be heard in behalf of the company in order that they might if possible prevent the withdrawal of the concession, made application to his excellency Mr. von Koller, the Prussian minister of the interior, for such hearing. On the 7th of July last the following reply was sent them:

“His excellency Minister von Koller directs that the following answer to your telegram of yesterday’s date be sent: ‘Privy Counsellor von Knebel enters upon his leave of absence within a few days and will return to Berlin on the 18th of August next. It rests with you to acquaint Mr. von Knebel during his absence with the necessary facts or to await his return to Berlin.’”

The undersigned is informed that on receipt of this communication the representatives of the company referred to informed the office of the minister of the interior of Prussia, in substance, that they were at the disposition of Mr. von Knebel and would go anywhere to see him. Receiving no reply to this, they waited, expecting to see him after his return on the 18th of August. On the 16th of August they, to their great surprise, received a notice dated the 14th of that month, that the concession was revoked and that the company must do no new business in Prussia after the 1st day of September next. It will be seen that, according to the foregoing statement, the company had a right to believe that the desired opportunity to present this subject to the authorities, which its representatives had anxiously sought, would be accorded and that they would be heard in its behalf in this matter of so great importance to its interests, on the return of Mr. von Knebel to Berlin. On the contrary, however, an order withdrawing the concession was, without hearing them, made two days before the time fixed for his return.

The undersigned, under instructions from his Government, represents to his excellency the injustice of the proceeding complained of, especially in view of the representations heretofore made, above referred to, and of the expressed willingness of the company to confine its business in Prussia to such plans as the Government will approve.

The undersigned respectfully asks his excellency’s immediate attention to the subject, to the end that the order revoking the concession may be withdrawn, and avails himself of the occasion to renew to his excellency the assurance of his most distinguished consideration.

Theodore Runyon
.