New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1905-10-18
WOULD regulate
LIFE insurance
PRESIDENT ROOSEVELT FAvoRs
FEDERAL CONTROL OF THE
COMPANIES.
Measure for Government Supervision
to Be introduced in Congress
Senator Dryden Explains the Pro-
posed Law.

New York, Oct ia definite plan
for government control of life insur-
ance has been agreed upon, and con-
gress will be asked to pass the neces-
sary legislation at the session soon
to open. Senator John F. Dryden, of
New Jersey, will introduce the bill,
and President Roosevelt will back it
with all his influence. The ideas in
the bill, which declares life insurance
interstate commerce, are partly those
of the president, and partly of Sena-
tor Dryden, who is president of the
and one of the highest living author
tiles upon insurance matters.
Court Decision Necessary.
President Roosevelt believes that
the constitutional question involved
can be solved only by congressional
legislation, and a subsequent test of
such legislation before the United
States supreme court. To secure the
passage of this legislation will be one
of the principal tasks this winter.
The alleged unconstitutionality of all
legislation of this character has al
ways been urged against the passage
of any legislation for the control of
insurance. The decision of the SUI
preme court in the case of Paul VS..
Virginia apparently was to the effect
that insurance is not interstate COM
merce, and that it can be regulated
only by the state authorities. The an
swer to this contention is that con-
gress never has passed a law declar-
ing insurance to be interstate COM
merce, and that the supreme court
would take different view of the
matter if such a law were passed.
Measure Explained.
my life insurance BILL declared
Senoator Dryden, will provide an
amendment to the act which estab-
1ished the department of commerce
and labor. 1t proposes an officer
called superintendent of insurance, in
charge of an insurance division, and
who shall be appointed by the presi-
dent, with confirmation by the senate.
Associated with him will be an off,
cial to be known as the national act
uary. The bill will provide that the
policies of insurance are deemed to
be articles of interstate commerce.
This act will not apply to any corpora
tion transacting insurance business
| exclusively in one state, and will have
| no application to any religious, chart
table or fraternal institution.
THE superintendent of insurance
| will have the power to fix fees, es-
| tablish rules and regulations for con-
Quoting the business. Annual reports
| will be made to the superintendent by
| corporations, ana that officer will be
| vested with the power to examine into
! the business and affairs of the cor
| porations, for the purpose of determin.
ing their solvency and trustWorthi-
ness Each corporation will be com
| PEELED to deposit with the United
| States treasurer, as a guarantee for
| the faithful performance of it's con
tracts, the sum of 100000. Licenses
| will be issued to insurance corpora
tons by the superintendent, providing
the companies have complied with the
| rules. The superintendent will have
the power to revoke these licenses fol
cause.
at is my firm conviction that sucl
an act would be productive of mos
excellent results, increasing the securi
ty Of insurance to the policyholders
diminishing the now considerable
amount of clerical labor to meet TIN
requirements of some so differen
states and territories, decreasing tn
burden of taxation, increasing the re
turns to policyholuers, and thus de
creasing the cost of insurance, broad
ening the scope of administration, and
in word. Matchmaking the business.