New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-08
INSURANCE AND FEDERAL SUPERVI-
SION

kx-Asslstant Attorney General James NJ. Beck
VINO argued the Northern Securities case in the
Circuit Court. and who is special counsel of
day:
No feature of the Presidents recent message is
more noteworthy than his brief but emphatic
recommendation that Congress should bring insur
attention 70 the fact that great corporations can
r Decone such only by engaging IN Interstate com.
ii ne While this recognition OF the fact that
insurance plays important part III interstate
sorae olher PRESIDENTS nave recognized that the
foreign business of American life insurance COM
elgn commercial relations. Thus, President Cleve
TO the MS. is Message % Lece'noer lSS9 referred
companies had developed in foreign countries and
pressed an opinion that should not silently
acquesce in vexstious hindrances to the enjoyment
trade relations During the administrations Of
ta{ slu f 1leveiand Harrison and Mchinley, tn
I'M ough diplomatic channels. to prevent unjust dis
Of our foreign trade relations The federal govern
nent mas however. been embarrassed in protecting
OF the national ana irtarra tio,'f - in
vii be valuable in safeguarding our interests IN
foreign countries at time when certain foreign
nations are attempting to deny American com
Panles equal rights in their territories The Presi
that for which the American companies have long
and most earnestly sought-the seal of national
It seems strange that such recognition should
states had reached its present amazing develop
ment a business which has in force over 100000
contracts or insurance. whose annual income
ceeds 5000 O000 and whose accumulated assets ex-
coed $4,000 600. obviously enters most intimately
into me commercial life of the American people
The reason for this delay Is far seek When
insurance was in its infancy, the Supreme Court
expressed the opinion that insurance was not com
nlerce IN all OF the sO-called insurance cases
however, the validity Of State statutes, enacted in
the absence OF federal legislation. was alone in
question. The Supreme Court has never passed
upon the validity Of act of Congress affirmative
" regulating interstate foreign Insurance Their
probable opinion is indicated by the decision
in the lottery cases, where lottery ticket was
held TO be :Subjec- Of commerce and its carriage
from State to State the subject Of Congressional
Legislation II lottery ticket is a subject com
merce, policy or insurance less aleatory in char
aCter, must equally be so To hold otherwise would
be to strain at a grat and swallow a camel If
Congress shall follow the recommends tions Of the
President an important advance Will be made IL
the development of this great business. and I be-
lieve the Supreme Court Will sustain il. Such reg
ulatOns need be exclusive of the rights of the
transactions or to tax property within their Dor
I am satisfied that the great life insurance com
pantes would welcome federal supervision Not
wiJhstandng recent I'll advised. and. for the most
part, malicious diatrihes against these companies
business is conducted by ADLER and none
with less secrecy Most Of the principal companies
statement of their investments. and for many years
they have submitted the most intimate details Of
their business to the insurance departments OF
many States and foreign countries. ! believe they
will welcome federal supervision, another safe
guard for the interests Of the pOlcyhOder.