The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1902-11-08
LET The STATES
REGULATE TRUSTS---BT SUCH
SUPERVISION
As Is Applied to Insurance Conn
paMles.

paDies.
In his recent very able and sugges-
tive address on the supervision of life
insurance, delivered before the nation
al convention of state insurance Of
fcials at Columbus o., John A. Nc
Call, the well known president >of the
New York Life Insurance company, set
forth certain principles underlying the
insurance laws of the various states,
which are capable of far wider appli-
cation, it seems to us, than the speak
er himself probably realized.
In his review of the history and
growth of the movement for state in
spection, Mr.. Mccall showed how the
states, beginning with Massachusetts
in 1855, have gradually formed body
of supervisory statutes SO searching
| in their character and so stringent in
their requirements as to financial safe
! guards the security of investors and
the conduct of business on sound and
economical principles. that it is now
| practically impossible for any regular
life insurance company to do business
anywhere in this country except on an
honest and legitimate basis. Among
| the more important requirements now
embodied in the statutes of nearly all
| the states are these: That each insur
ance company must file a certified copy
of it's chapter with the state depart
| ment; that it must submit an annual
| sworn statement of its business and
| financial status to the state insurance
officials, and must also satisfy these
| officials that 1t is lawfully organized
| under the laws of the state where it
| has it's home Office. 1t Is also general
| " required that the insurance compan-
les shall show that they have on de-
post with the treasurer of their re-
spective states securities to the value
of at least 100000. Each company, is
required to appoint a resident attorney
in each state, upon whom legal process
| may be served; it must furnish com
plete list of it's agents and local offices,
and must give bonds that its agents
will comply with all the laws applica-
BILE to their business.
| These are only few of the many
| I6EuidIlUuS anu ICStI lC(ibllS tliippS'.1t
by the states upon life insurance COM
panies, all of them designed to protect
| the citizen from imposition, fraud. in
| justice and other abuses which exist
| ed when no supervision was exercised
and which would be likely to spring in
to being again were the present safe
| guards removed.
| While some of the supervisory
statutes may seem unnecessary, severe
and exacting. the general result Of
their enactment has been beneficial in
| the highest degree to all sound, hon
orable and legitimate insurance enter
| prises. They have driven crooked and
| swindling concerns out of business.
and left the field to those worthy of
| the patronage and confidence of the
people. Under these restrictive laws
all the better class of insurance COM
| panies have fiourished as never before.
and their business has grown to such
vast proportions that in the total
amount of capital involved and the ex-
tent of their operations they stand at
| the head to-day of all financial under
takings of modern times.
| We have passed these points in re-
view chiefly because 1t seems to US
| that in these supervisory laws applica-
| BILE to the life insurance business wn
have already at hand the best possbla
means for the regulation and super
vision Of the so-called trusts. With the
necessary adaptations to the differing
| character and methods of these trade
combinations, we see no good reason
why the great body Of statutes and the
| supervisory systems now established
by the respective states might not be
applied and utilized in remedying the
| real or alleged evils arising from these
aggregations of capital. These re-
| uuirements would insure that degree of
publicity in trust operations now in
sisted upon by President Roosevelt and
others as the chief remedy for trust
abuses; they would furnish the guar
antees, under state requirements, for
| that sound business management and
that security to patrons and investors
which have directly or indirectly help.
ed to place life insurance on its pres
ent solid-footing and made it strong
safe and prosperous. Such restrictive
laws would nave tne efIect not only OF
remedying such abuses as exist or are
likely to exist from the growth OF
trusts, but would insure to all regular
and honorable enterprises Of this sert
a measure of protection under law anG
a degree of public confidence thai
would be greatly to their benefit.
These measures Of state supervision
would be far more practicable also
than any amendment to the fedora
constitution could possibly be- To eff
feet a change in the organic law of
the nation is necessarily long and
tedious process, covering a space Of
many years, and this should only bt
! resorted to in extreme cases and where
| principles of national and vital import
ance are at stake. In the regula tior
and control of trusts Their is no need OF
resorting to constitutional amend
jment. Let the states exercise the same
authority over trade ordinations that
they now do over life insurance COM
panies. and the thing will be done. Thi'
is a safe, sure and speedy method
Why not try it?-From Leslie's Week
~.