Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1905-06-06

several states, which in course Of
time, has developed into a complex
system of supervision, regulation and
control, until a company transacting a
national business is subject to the su-
pervision of some fifty different insur-
ance departments. Not only do the
companies suffer from overlegislation,
resulting in a body of laws often maxi
ing that duty In one state which
might be a crime in another, but they
are made the subjects of excessive
taxation. such as is not imposed upon
any other form of enterprise. The
American life insurance companies
alone have paid in the form of taxes
the enormous sum Of about 100000
900. The present annual burden upon
the life insurance companies alone.
paid in the form Of taxes, licenses. fees.
ETC.. Is about $9,000,000.
Il may cite as a pertinent illustra-
tion a case Of the Wisconsin insurance
department, which last year collected
over $5OO,000 from insurance compa-
nies, while less than 100000 was re-
quired for the administration of the
department. North Carolina collects
over 100000 from insurance compa-
nies when less than $4,000 is required
for the maintenance Of the department.
Such facts as these warrant the con-
clusion that in many cases these de-
partments exceed their proper func-
tions and become mere agencies for the
collection Of taxes from the corpora
tions Of other states.
I'm comparison with this burden II
may be Of interest to learn that the to-
tai cost connected with Federal super
vision of over five thousand national
banks Is only about $325,OOO, or an
average of about $64 for each bank.
The maximum cost Of such an exami-
nation of bank with large resources
has only been $2,7O0. While the COM
parison is not Of exactly comparable
institutions, 1t Is at the same time
very suggestive one. No system OF
national supervision or regulation Will
entirely prevent failures among banks,
any more than accidents on railroads
or the occasional mismanagement OF
insurance companies. All governments
In this respect have their limitations,
for human institutions derive their
worth from the character OF those VINO
are responsible for their management
The senator does not believe that the
supreme court would hold Federal reg
uation of insurance to be unconstitu-
tional, because the American constitu-
ton was widely framed to meet the
needs of a free and progressive people
for all time, and has never failed to
meet new conditions and new problems
which arise as society advances and
civilization develops. He believes that
every authority on the history of COM
merce has conceded insurance to be an
indispensable factor in commercial
development The constitution Is an
instrument dealing with general con-
ditions, and not with special condi-
tions When 1t was adopted Insurance
was only of local Importance, whiie 1t
Is now a national business, subject TO
the legitimate and effective legislation
and control Of the national govern
ment. 1t has become national In char
acter, and few companies confine their
operations to single state.
Congress has recently taken long
step forward in establishing new de-
partment of commerce and labor, ana
the bureau of corporations Is by law
required to report upon insurance COM
panies and their business. In the ori-
ginal draft of the measure bureau or
insurance was provided for, and the
house committee reported that 1t was
necessary because "the insurance in
terests of our country have become so
great, and the business Of insurance ID
so essentially a matter Of interstate
business, and hence largely beyond
any effectual control by the state au-
| thorities" that 1T Is time for the ma
tional government to take such notice
of and exercise such control over In
surance companies as 1t may. be enti-
tied to under the constitution. 1t must
be admitted that II the Standard OIL
company, the beef trust and other SIM
liar interests are subject to Federal
control, the transactions and manage
ment of the insurance companies
which involve the welfare Of so many
millions Of the population, certainly
should be. The latest returns show that
there are 1s.297,715 insurance policies
in force, representing value Of sll,-
57O,6O7,545, and that the total income
of the insurance companies Is $55S,63s,-
900 a year.
Senator Dryden declines to discuss
the additional reasons for Federal con-
| troll that are suggested by the recent
Equitable scandals. Being the head
of a competing company he naturally
feels a delicacy on that point.