The herald., 1898-09-28
Abuses Of State Supervision

It is probable that more has been said
within the last week about the abuses of
state supervision of insurance than has
been uttered bofore in months past. The
Hon. John A. Finch of Indianapolis. who
represented the state of Indiana at the
national convention Of insurance commits
sioners at Milwaukee the other day, told
the commissioners plainly what he thought
of the examination abuse. He said: "Of
all powers granted to the heads of insur-
ance departments, the visitorial power is
most frequently under criticism. The ex-
ecutives Of company who have nothing
to fear from the EXTREMIST application Of
the visitorial annoyance that would follow,
dread and distrust supervision. The exec
utives of a company who are not so but
tressed, who have reason to fear the re-
suit of an application of the vistorial
power, dread 1t as an obstruction. Be SUI
pervision good or bad. In theory or prac-
tice, there is certainly no necessity for its
frequency. There was never such an illus
tration Of 'damnable iteration
After stating that the primary propo-
sition of supervision and of all insurance
legislation was originally in the supposed
interest of policy-holders, Mr.. French de-
clared that the system had come to be
merely device for taxation. He said:
millions are collected every year under
this machinery, and but a small part OF
the sum collected has any relation to any
test of solvency of the companies. The
collections are for licenses to the agents.
for other service to the companies. and
by way of charge on the premium receipts.
The average of the collections of all the
states is in excess Of per cent of the gross
receipts OF the companies. A very little
figuring will show how large fund is
taken from the companies by the states"
Concerning the possibility Of national SUI
pervision, Mr.. French said:
IT would welcome an effort that would
test the right Of congress to enact a law
creating bureau under one of the depart
ments that would SCI change the present
system of having forty-five bureaus doing.
or attempting to do, what one efficient bu-
reau could better do. Such bureau could
only affect companies doing interstate busi-
ness. 1t would not supervise that states
in their regulation and supervision of local
companies. Such bureau would be a vast
saving to the policy-holders, and should
afford them a greater protection than they
now have. Would such a law be constitu-
tional? Upon this the supreme court would
have to pass. The educational effect of
the passage Of such a law, even II 1t be
declared unconstitutional, would be very
valuable. The mere effort to procure the
passage Of such law would be educa-
tional II the people and policy-holders
shall ever come to see that they are suf-
fering vast and needless expense by rea-
son of present legislation. supposedly In
their interest. there would be hope for a
change in our legislation by congressional
action. by modification OF state statutes
affecting companies. or by the creation of
a public sentiment that would be as effect
i've as legislation to remove many Of the
existing evils so loudly complained Of.
There is more hope now for fair legisla-
ton than at any time in the past The
of the lfe-insurance policy
contract has vastly decreased litigation
and there is. without question, a better
feeling row towards the life-insurace COM
panies In the public at large than has eve,
before been known. 4
Others at the convention spoke in S
same strain. and most all agreed tha.n
surance would be cheapened and tn a.,
terests Of policy-holders best promota
placing fewer burdens upon the comr W.
Won't Stand the Cut .Sn 90 :"
Secretary Cages offer to redeemhat -
900 currency skies which fall due,.h.
next Is not meeting with a YER ern
aTing RESPONSE. Had the offer 'ne oues-
deem the bonds at par
have been more satisfac ctorviees against
poses to det,ict ~ Of I pf
peonle will therefore pref