The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-01-13
THE INSURANCE DEPARTMENT.

=
SUGGESTION THAT IT BE ABoILsHED-oPIN
IONS OF LIFE INSURANCE MEN.
In order to ascertain how that portion of Governor
Robinson's Message i'll which he suggests the aboli-
ton of the Insurance Department is regarded by life
insurance people a HERALD reporter on Saturday
called upon the officers of few of the leading
panies in this city and obtained the following express
sions of opinion:-
EQUITABLE OPINION.
In the absence of the president Mr.. James "
Alexander. vice president of the Equitable Life
Assurance Society, said:-'I consider sup
ervsion of the insurance business desirable IL
any supervision in State OF the impor.
lance OF New York is necessary there is GER
tany need OF a department. There is occupation
enough for one in looking after this interest.
The question is not to the incumbent for the time
being. Under democratic system the public
must put up with unworthy ministers occasionally.
Ii the system be wise the people have themselves to
blame if they do not worthy heads of depart-
ments The present department of New York has
proved efficient The Massachusetts Insur-
Department does the public great service.
The great evil is the multiplication Of State insur-
ance departments where one good one is sufficient.
Life companies in this State doing business in the
other States have to submit to a similar pro-
of investigation and examination. through
the medium OF appropriate sworn statements
each OF twenty thirty States. The
government or Great Britain has or late yeard
initiated the American system of supervision, after
finding the plan of non-supervision faulty. The mis-
take made by some to suppose it to be the province
OF state insurance department to Interfere in the
details of company management Its true province
is to keep the public Informed of the absolute
dition every companyits assets liabilities. in
come and disbursements, its outstanding insurance
and annual transactions, the public against
fraud and to see that punishment follows the VIOLA
ton of the law. Much could be said in favor of
tinuing honest and capable head of the Insurance
Department in office. safe from the ycissitudes OF
aha 1lTlin trat tlAarat
has acquired experience i'll the techncalies OF
the business he is filter man than any ap-
pontee ignorant of insurance matters"
PRESIDENT FRASKLINs VIEWS
Mr.. Morris Franklin, president of the New York
Life Insurance Company, said:"We have great con-
hdence in the present Superintendent of the msur-
Department, and believe under his supervision
much good may result to all interests connected
herewith But it is unquesionably that in tho
hands OF faithless and unprncipled persons great
harm may arise and the end desired to be obtained
be entirely frustrated. Upon the whole are in-
cned to believe that under the present rule of party
favortism the same results would be obtained it the,
control of the companies should be. heretofore.
placed within the jurisdiction OF the Comptroller
LEGISLATIVE TISKERING.
prominent officer of the Mutual Life Insurance
Company who asked that his name be omitted, spoke
follows THE companies for many years have
suffered from the multiplicity OF insurance depart
ments and the completely OF the laws under which
they have been endeavoring to transact their business
in the several States For many years efforts have
been constantly made to obviate many of the annoy
resulting from this state of things The first
the introduction OF bill into Congress to
a u
ncction with the Treasury Department The life
Insurance companies generally favored it, but it
became apparent that unless the State departments.
then already quite numerous, could be done away
WITH the creation of National Bureau OF Insurance
Supervision would only be adding King Stork to
King Log. An framed and introduced into
Congress providing for the uniform transaction Of
business the States by Insurance. telegraph
and transportation companies, under the provisions
of a section of the United States consttu-
ton, which gives TO Congress the right to
regulate commerce between the States. This act.
h.urN lion tirn han
the feeling against further centralizing legislation,
which had been prevalent during the war, very
strong. The act defeated Suits thcig
brought to test the power of the different Legislatures
pass laws limiting the right Of any corporation to
do business within the borders OF state ana tnis
question was finally settled by the decision IN tho
OF Paul against Virginia, given by Mr.. Justice
Field which was in substance to the effect that each
State possessed the unrestricted right to prescribe
to the corporations of other States the
conditions which they should be admitted
to do business. Later Superintendent Miller.
who, whatever criticisms might be made some OF
the acts of his administration. Undoubtedly far
seeing as to the future of in surance supervision.
called a convention of the superintendent
of the several States to meet i'll the city OF New York.
for the purpose of discussion and mutual confer
upon subjects relating to their respective de-
partments. A constitution was adopted and per-
manent organization effected, and had the Conven-
much would undoubtedly have been accomplished
in the way of educating the Western and Southern
legislator through the information gained by his in
surance superintendent during his annual attendance
upon the Convention. The impeachment of Superin-
tendent Miller intersered with the success OF this
scheme, and the Convention Of Insurance Superin-
tendents has since that time been gradually lessen
ing and migratory body. The last Convention was
attended by only nine delegates and the interest in -
seems to be rapidly waning.
LIFE INSURANCE GREAT BRITAIN.
supervision in Great Britain does not exist "a wa
understand it. There the only requirements for tho
transaction of business in amy OF the forms Of in.'
surance is the preparation of the annual revenue ac-
count and balance sheet which must be sworn to by
two of the directors ana the of the company
These required by law to be MED with the Board
OF Trade which transmits them at the close of tho
year To Parliament, by whose orders they pub.
lished III the annual Insurance Blue Book. This
is the whole of il: sufficient publicity to insure.
to every desiring the information accurate
knowledge of the financial condition OF every in
surance company accompanied by the imposition OF
penalties for any false statement breach OK
trust The whole question is whether govern
ment is to be paernal it is called in its nature
absolutely democratic. In my judgment Insurance.
supervision, like every other department of govern-
ment in democratic country, should be reduced tn
the simplest forms and limited 10 the fewest powers
requisite to secure the object to be attained.