Omaha daily bee., 1899-01-20
SEEKING NATIONAL PROTECTION.
Insurance Companies weary OF state
RcgnlniiOna and nlRckmnil.
Washington Cor. Chicago Record

Washington Cor Chicago Record
The managers OF the great insurance com
panles throughout the country-fre, life and
surety-are having prepared and will soon
Introduce in congress comprehensive Oil
placing all corporations engaged IN an In
surance business in more than one state
under the jurisdiction OF the federal govern
ment. represented either by the secretary OF
the treasury or the secretary OF the interior.
Their desire is to have the Insurance COM
panies Of the country placed under federal
surveillance similar to that now extended
over national banks, which, they believe,
can be done under that broad provision OF
the constitution which gives congress power
to control commerce between the states.
The chief motive for this new arrangement
is TO avoid the irritation and expensive liti-
gaticn which the companies are compelled
to undergo by the insurance commissioners
In the different states. They complain that
1t has developed into we'll organized black
mail and costs them hundreds OF thousands
OF dollars every year to meet the demands
OF certain state officials who have the au-
thority to make them great deal OF trouble
and even prohibit them from doing business
II they do not submit. The financial man
ager OF one of the large life insurance com
panies OF New York states that it costs his
CoIupduy ABOUT tIOU,VVV u year 10 comply
with the demands of the many state and
foreign commissioners who have authority
to inspect them, and the greater part OF the
sum was pure blackmail. AS an illustration
he cited visit which had been made to him
| a few days previous by an insurance COM
missioner from a western state. This official
had gone through the form of examining the
books and records of the company, had re-
ceived various explanations concerning the
financial condition of the company which
were perfectly legitimate and had been
treated with respect and Difference until he
sent to the secretary Of the company his
hotel bill, which included a number OF items
which the latter refused to pay. 1t appears
that he had ordered suits of clothes for him
self, jewelry, furs and even garments for his
wife and children, amounting to several hun
dred dollars. which had been sent C. o. ID.
to his hotel and having been paid for by
the cashier the items were placed in his
bill.
When the secretary refused to pay the
bin the state commissioner became indig-
nant and warned him that his company
would regret it. His indignation was 30
great and his threats SO fierce that the secre-
tary brought the matter to the attention Of
the executive committee and was in
more about it. A few days later the COM
missioner called upon the chairman OF the
finance committee and informed him that he
felt it his duty to personally apprase all
the real estate investments OF the company
throughout the United States, which amount
to several hundred millions OF dollars, and
are scattered in almost every city Of impor-
| tance from Portland, Me-, to Los Angeles,
Cal. He intimated also that he might find
| 1t necessary to inspect the property OF tho
company In Europe, where it owns build
ings and holds several million dollars worth
OF mortgages. He said the company Of
course would be expected to pay his ex-
penses.
AS he spoke with great determination no
| attempt was made to argue with him and
this matter was also brought before the
| executive committee, which recognized 1t as
| a new form of blackmail and reluctantly de-
cided to submit as usual. The chairman OF
| the finance committee was instructed to in
form the state commissioner that they
| would be very glad to have him make the
inspection and appraisement he proposed and
offered him a check for $1,000 in payment OF
his expenses. The check was promptly ac-
cepted by the commissioner, who went back
| to his home the next day and has not been
heard from since his proposed journey be-
ing simply subterfuge to extort money
| from the company.
There are other reasons why insurance
managers think it would be we'll to place
their companies under the jurisdiction OF
the general government, and the bill Is now
| being drawn. No attempt will be made to
pass it at the present session Of congress
but 1t will probably be introduced very soon.