Omaha daily bee., 1905-12-08
MOVE FOR THE OPEN GAME
Legal Reserve Life Insurance COM
pRnies vote for Utmost Pub
Iicity In AHairs.

A meeting OF executive officers OF legal
reserve life companies organized in the
states OF Ohio Indiana, Illinois, Iowa,
Missouri. Nebraska and Tennessee was
held in Chicago Tuesday. II was called
by ], b Reynolds, president Of the
Kansas City life Insurance company, Kan
sas city, Mo- Charles L. Dark, vice presi-
dent Of the American Central Life lnsur-
ance company OF Indianapolis and Sidney
A. Foster secretary of the Royal Union
Life Insurance company Des Moines, Ia
The meeting organized by electing J. b.
Reynolds. president OF the Kansas City Lille
Insurance company, chairman, and +. w.
blackburn, counsel of the Bankers Reserve
Life osn1pany of Omaha, fSeb., secretary.
The forenoon was devoted to IAN informal
discussion. At the' afternoon session the
following resolution was unanimously
adopted:
Resolved. That we favor the utmost pub
licity in the life insurance business, we In
vite the closest supervision of honest public
officials. we favor such uniformity OF laws
In the several states shall safeguard the
interests Of the policyholders, avoid abuses
and take the public and policyholders into
the confidence of the management, and be-
lieve that corrupt officials should be
promptly punished. We believe the search
| light of careful, competent and honest in
vestigation has no terrors to honest life
AT the evening session, those present
adopted the following:
| Resolved That we are opposed to any in
| reference with state supervision and con-
| troll of life insurance companies that fed
| eral supervision is not expedient, and wo
! believe is unconstitutional, and under eX-
| listing conditions we are opposed to IL. We
endorse strict state supervision.
In support of this resolution we suggest
| the following:
L The supreme court of the United
| States has frequently held that Interstate
/ insurance is not interstate commerce. and
| therefore believe federal supervision as pro-
| posed is unconstitutional, and that congress
! cannot make that commerce which is not
commerce by simple enactment or resolu-
| ton.
?, Federal supervision is inexpedient be-
| cause II involves years OF expensive aud
uncertain litigation, the unsettling of fixed
| principles of the legal Interpretation OF
policy contracts and obligations, and may
! seriously impair the securities of life COM
! panies. 1t involves the enactment of fed
eral laws now in force In the several states
srIescting lie insurance and II refers 10 o.,
| subject, question which for fifty years
has been considered the sole province of the
state legislatures.
| 3. II state supervision has failed through
the incompetency of an individual commits
sioner. this is an argument against taking
from the fifty state departments the author
ity and power to protect their policyholders
II a state superintendent can be venal oil
incompetent, national superintendent IL
power in the hands of one man. his short
comings would affect the country at large
| while the failure of one state official car
| under existing circumstances be neutralizeC
and ameliorated, and corrected by those o
| the various other states.
| T. Supervision of life insurance and life
Insurance companies should be free from
partisan political influences, and fifty stat'
| commissioners cannot I'm the nature Of
! things be so susceptible to partisan politica
intrigue as a single appointce. Further
Illore, state commissioners cannot un er an
conditions, become the creatures of com
bines, trusts or corporate cooperation.
S. No man should have the power L
formulate rules and regulations, interpre
and execute the same for system of bust
ness transactions, extending throughout tn,
nation under conditions which vary will
locality, contracts issued under laws formu
lated and adjusted to the conditions sur
rounding them. Any change at the presen
time would be against the charters of tn
respective companies, and the result woul'
holders. all policies having been issue,
under existing state laws.
1t was then agreed that the chairman
should appoint an executive committee o
five, the chairman, j. B. Reynolds of Mis-
souri,, to be chairman of the committee
The chair appointed Mr.. Charles T.. Oar
of Indiana Mr.. Samuel Bosworth Smith @
Tennessee Mr.. George B. Peak Of Iowa an
Mr. b. n Robson of Nebraska as tn
other members of the committee.
Another meeting we'll be held at the JET
ferson hotel st. Louis, January, so, 100