New-York tribune., 1901-11-26
NATIONAL SUPERVISION OF INSURANCE
COMPANIES.
he Editor Of The Tribune.

To the Editor Of The Tribune
Sir: I notice with great interest in the issue OF
The Tribune Of this date the suggestion that hre
life and marine insurance companies should be
brought under the supervision of the proposed Fed
eraI Department Of Commerce and Industries Inc
suggestion is one that will the commendation
OF all who interested in the business OF lnsur-
ance in any Of its branches in this country
The idea is not new. Several movements look
ing 10 the same end have been nsugated, but they
have very generally failed or have met with dis
approval, even among those who might De suppose"
10 favor such movement, by reason OF the rather
revolutionary character Of the legislation proposed
In the first place, previous proposals have looked
TO the esa blishrnent of separate Federal bureau OF
office devoted specifically the supervision OF IN
surence interests. II is not necessary TO submit
arguments show that such a proposal Is IN
cornparably at a disadvantage with a proposltloh
which simply mentions insurance one Of a NUM-
Der Of commercial interests the supervision OF
which is intrusted a department OF the Federal
Government presided by Cabinet officer
In the second place, previous proposals have IN
dicated the desire abolish the State insurance
departments placing all duties in charge OF q
Federal bureau. Such proposition is not only
obviously impracticabIe, but most unwise. The
State insurance departments are features or the
police duties of the individual State, the continu-
ance of whose organization is an inalienable right
OF the State What is needed in the way Of FED
eral legislation is simply such action as Will insure
that under the authority of department or com
that is TO say, under te0eral HceIse ColiI-
panies transacting the business of the Insurance
may be permitted transact their business IN ali
the States OF Union subject only. IN ADDITION 70
he license, the authority OF the lhSuT-
ance Department Of the State in wncn they are or
ganzed The burdens. grievous TO oe poIie a.
heaped upon the insurance companies OF az klnos
that are now doing business in this country arse
from the that they subject 20 the
Of least forty y-lVe sNps
ofcials located many different states Inc SIT
ustion sought evolved IS analogous 70 tat oe-
yeoned bv the National Banking act, whlch causes
the obligations of any national bank 10 pass cur
ran, in ali the States and Territories or the MON
In the same way, what is desired. SO Tar as the IN
s11-ance interests are concerned. Is that any such
alton properly licensed by the insurance u-
rea, Of the State Of its creation shall, py virtue
n Federal license granted under the supervision
Of national officer be thereby allowed 10 Trans
act its business without interference in all the
} other States OF the Union.
Legislation looking 10 this end would IN IN no way
trnnsr ny legitimate rights or powers OF the states
Tbev could and would retain their powers over the
carnnanies of their creation, and the right OF
| Icensinr agents OF all companies TO act as such
would still remain. All the legitimate advantages
| thar accrue 10 the State from the department
wnnd still be available. The advantages tnat
insurance interests and to the
! nnbl,c whom they serve are too many 10 be de-
/ ftai1ad additional security being one OF them
! Ney-York Nov. 25 1901 CNDERWRiTEh