The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-01-04
OFFICE OF THE HERALD.
Los Angeles, Jan. 8, 1898.

OFFICE OF THE HERALD.
Los Angeles, Jan. 8, 1898.
Change has vital part in the dynam-
les Of the physical universe where immo-
bility Is death"
National supervision of insurance is
it'll discussed wherever insurance men
congregate. Senator Platt's (of Con-
necticut) measure has been studied with
the aid Of counsel, and insurance men
are becoming familiar with it's leading
provisions. The presidents are natural-
~ cautious about expressing opinions.
but those most familiar with the subject
believe that the bill in it's present shape
cannot go through, but that 1t will serve
q useful purpose in attracting attention
again to the necessity for substituting
federal control of some sort for the pres
ent system Of state supervision. Friends
OF the scheme for a national bureau real
lie that only the most perfect bill, ap-
proved by acknowledged experts. will
have chance OF passage. Difficulties
at Hartford with the Kansas depart
ment. and the resultant litigation. are
thought to have prompted discussion Of
the matter at this time. However this
may be, says the New York Post, the
hill is regarded by some as having been
prepared without due regard for the
magnitude Of the interests involved.
Thu requirements exacted from foreign
companies would, It is thought, provoke
retaliatory legislation abroad and
ishrsaten- serious disturbance in profita-
g territories. Life insurance men, on
the whole. appear to be less doubtful
concerning the practicability Of federal
supervision than fire insurance men. The
general idea favors the national divi-
SIGN only az substitute for the present
system. not as an additional depart
meat"
Many well known lawyers are mani
Testing an interest in the present agita-
ton. William B. Hornblower, in discus
sing the advantages Of national super
vision Of insurance without reference to
the Plat measure) said:
II have somewhat reluctantly come to
the conclusion that some way ought to
be devised for q uniform regulation of
insurance companies throughout the
United States. say reluctantly, be-
cause am on constitutional questions
strong Democrat and a strong believer
In preserving the powers Of the states
to regulate the affairs within their own
territory. The present situation, how
ever. especially as to life insurance COM
panies, is becoming almost intolerable.
We hi ..e forty-five states in this union,
each asserting its own Jurisdiction over
life insurance companies doing business
within its borders and claiming the right
to regulate their business. Many of the
state legislatures undertake to prohibit
certain forms Of policies. Others under
take to declare how the liabilities of
companies shall be determined in litiga-
ton, and what rules of evidence and
what presumptions Of law shall be ap-
Piled. We have thus a system growing
up by which a life Insurance company
organized under the laws of this state
I'd having its principal office here is at
liberty to issue one kind of policy in this
state but is not at liberty to issue it in
another state. It may have a defense,
a good legal defense, to claim upon an
insurance policy in the state, and may
be obliged to pay the same policy under
the laws Of another state where suit may
be brought against it. Again, many Of
the states have established very strin-
gent provisions regulating the conduct
Of the business affairs Of company do
Ing business within their borders, and
have put 1t in the power of state officials
to harrass and annoy by unnecessary
and expensive examinations of the at
fairs Of company. or in other ways.
What might be done in the future by
corrupt state officials can be reasonably
left to the Imagination.
THE result of this state of affairs Is
to produce great confusion and uncer-
tainty in the business Of life insurance.
"A mutual life insurance company
should, above all things, be able to have
uniformity in its dealings in all parts of
the country. What the future may bring
forth In the way of further adverse legis-
lation by the various states it is impos-
Bible to foresee. For these reasons, and
In the interest Of policy holders (who,
in life insurance companies, are the real
parties In interest, and in mutual life
insurance companies the only parties in
interest), am of the opinion that 1t is
highly desirable that there should be
some way found for federal legislation
which will produce uniformity, and for
taking out Of the states the regulation
and control Of the lie insurance bust
ness.
II appreciate fully. however, the con-
stitutional difficulties in the way. The
case of Paul VS.. Virginia is well known
to all members Of the profession. The
tendency, however, of the decisions since
that day has been SO strongly in favor
of liberal construction Of the clause
OF the United States constitution giving
congress power to regulate commerce
between the states that possibly the SUI
preine court of the United States may
see its way clear now to modify its for
mer ruling. A constitutional amend
mont, however, may be necessary to ac-
complish that result, by giving the pow
er to congress to regulate the dealings of
corporations carrying on business in va
ri ut fAc - L. - II ~