Evening journal., 1905-06-09
RATIONAL CONTROL
OF LIFE INSURANCE
James NJ. Beck's Reasons For
Federal Supervision.
PEOPLE WILL DEMAND IT, HB SAYS

E1-United states Deputy Attorney
Geaernl Tells Agents at an IuSur-
ance Dinner In New York That
Americans Are In n Frame OF Mind
where They VIII No Longer Rec
oEniHe Territorial Lines-HoVv the
Change May De Effected.
James NJ Beck, ex-deputy attorney
general Of the United States, made q
speech at the May dinner OF the Life
Underwriters association Of New
York at the Hotel Astor the other
night, in which he made a strong plea
for supervision Of the life insurance
companies by the federal government
instead of by the various state govern
ments, as at present, and predicted
that this would soon come to pass, says
the New York Times.
Il believe the agitation Of the last
twelve months in which the life insur-
ance companies have been tested as
though with fire" said Mr. Beck, will
tend to benefit the entire cause Of life
insurance Ia this country more greatly
y
In the first place, 1 believe it Will
turn the hearts and consciences Of the
heads Of these great companies to the
inside workings Of their institutions.
If it should be found that there is some
cause for complaint these complaints
must be met and The workings of these
institutions be placed on basis where
all they do shall be done in the broad
light OF day.
In the second place, ! believe this
agitation will further the cause Of
national supervision Of life insurance
companies 1t is high time they were
placed under the broad aegis Of federal
protection instead Of being left to the
whimsical scrutiny OF forty-lve differ
cnt Insurance departments.
Il believe the events Of the last
twelve months have left the American
people IN a frame Of mind where they
win no longer recognize territorial
lines. but will demand national control
and national guarantee, which is only
fitting In the case Of Institutions as
broad in scope and as dignided in pur-
pose as the lie insurance companies.
ITO achieve this we must first get
congress TO pass the necessary legisla-
ton We must further convince the
supreme court that its earlier definition
of what rgl.ly falls within the realm
OF interstate commerce has been too
narrow i'm Wow OF modern concenua-
ton of capital No action is needed by
court. congress CT president to make
life Insurance companies national in
their scope. Steam and electricity have
already made them SO.
"Thc great Insurance concerns Of the
United States collect more money ev-
cry year than the government collects
in all its custom houses and disburses
more money than thc government does.
In the treasures of these Institutions
-. there is more morey, or its equivalent,
than the aggregate in circulation in the
entire country.
Congress- and the supreme court
have been tagging behind the econom-
ical events Of recent years. 'Dooley'
in his wisdom says that the supreme
court follows the election returns. That
Of course. is not true, but it is a fact
that neither congress nor the supreme
court, II this country is to continue as
progressive as il has been in the past,
can afford longer to be in the rear Of
the procession or legislate with regard
to economic conditions which long age
have been outgrown. I believe that ma.
tional supervision Of life insurance is
certain to come, though it may not be
inaugurated for a decade yet
1T must come If our insurance inter
ests abroad and more still If our inter
ests at home are to be protected. These
great institutions cannot be economic
ally administered If they are to be de
pendent upon the caprices Of forty-fivC
governments instead Of one. 1t is O
wonder that they have been able tC
survive at all with so many masters tC
put their hands into their Golfers when
ever they choose and help themselve:
to as much as caprice or greed may
suggest"
Mr.. Beck started out by saying thai
this had been the most unfortunate
year in its immediate results that thS
life insurance interests in the United
States had ever been called upon t
pass through and that the effects oi
the recent agitation would be notioca
BILE In life insurance returns ffas year.
10 come.
]. E Jeffries, an insurance man &.
philadelphia, den srcseed tSs recent ad
vocacy by All insurance paper Of th'
state government stepping IN and b,
eminent domain taking hold OF one o.
the great insurance companies.
ut is not reasonable to believe" sal,
he. that the insurance companies
4 would be more honestly or more eco
nomically managed in the hands OF ig
norant or dishonest politicians thar
they are today. Witness the recent ga
steal in Philadelphia. where the law
& making power has turned to violation
OF the law, where rcblic opinion IS dc
rided and the VIII OF the people set a
naught."
yellow CuIln IfIv