Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-11-21
FOR NATIONAL SUPERVISION.
w. II. REED FAyORs GOVERNMENT
CONTROL OF INSURANCE.
Presents His Views on This Subject nj
Meeting of Kansas City Life I'm
derwriters' AssOciatiOn-Mr.
Rumble in Chicago.

National supervision Of life insurance was
discussed by W.. II. Reed at a regular meet
.ng of the Kansas City Life Underwriters
Association at the Midland hotel. iAal
some remedy is needed for the present MS
of insurance supervision, Mr.. Reed thought
is self-eyident. THAT state supervision
has proven unsatisfactory will not De de-
MED" he said. while it is possib!e ior
reasonably impartial supervision TO be con-
Quoted by the different states, 1t Is hafuiy
within the range of probability. we nave
had too many illustrations OF the gross
incompetency OF state insurance officials
10 forget their blunders. Our sister state
has recently had a ioretaste OF Gehenna on
account of the antics of Il wild-eyed vision
isr. swinging his star across the insurance
world. McNallic acid may be good enough
for Populism but 1t Is not useiul ior hohes'
folks.
ASIDE from the question of supervision
there are other questions OF serious I'M
port to be considered. Most or the states
have retaliatory laws which are a menace
TO insurance companies, and give spectac-
ular officials an excuse for abusing their
brief authority. Most of the states con-
slider insurance companies legitimate prey
for taxation. There Is scarcely = state In
the union that does not tax insurance
premiums besides charging q license TO do
business.
las most life insurance companies are
conducted on the mutual plan the laws OF
the different states should be uniform, so
that all policy holders would receive the
same treatment. 1t cannot be denied that
for the citizens of one state to expect the
same returns where a high tax Is imposed
on the citizens of another state, where 4
low tax Is collected, is unfair.
Then there is the question OF the nom
forfeiture, laws of the different states:
Missouri for instance attempts to compel
foreign insurance companies to comply
witt her laws of non-forfeiture. which are
vastly different from those Of other states.
For instance a Connecticut company doing
business in Missouri must comply with the
Missouri laws SO far as the citizens OF
Missouri are concerned, when such COM
pliance is detrimental to the policy holders
many state legislatures look upon foreign
insurance companies as proper subjects
for plumber. National supervision will OBJ
viate all these difficulties.
THE federal government regulates COM
merce and IL cannot be successfully con-
troverted that the present method is far
superior to that in vogue prior to the
enactment of the interstate m laws.
No one will attempt to deny that the fed
eral government has the right to regulate
between states.
tuary, in commenting on the question says:
Commerce. especially interstate commerce,
is usually carried on by corporations, but
corporations are. with very rare exceptions.
the creations Of state legislatures. A cor
poration organized in one state can eXer-
else its corporate power in another state
only by the consent of the latter. There
are. however. two exceptions to this state
ment: first. where the corporation has been
vested by the federal government with the
execution of Its express or implied powers:
second. where the corporation is engaged
i'm interstate business
1.-THE federal government regulates ma
tional banks. Why can II not by the same
power. regulate insurance? Banking is
surance is essentially the same as bank
ing"