Waterbury evening Democrat., 1905-05-29
N|lT'II0NlL l CONTROL A| OF LIFE INSURANCE.

James M. Beck's Reasons For Federal Supervision. PEOPLE WILL DEMAND IT, HE SAYS Ex-Unfted States Deputy Attorney General Tells Agents Tt an Insure Sance Dinner In New York That gsskmericans Are In Frame of Mind sssNvhsre They Will No Longer Rso-
 ognlse Territorial Lines-How the Change May Be Effected.
 James M. Beck, ex-deputy attorney general of the United States, made speech at the May dinner of the Life Underwriters association of New York at the Hotel Astor the other aaght, in which he made 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.
 T believe the agitation of the last twelve months, in which the life insur- ance companies have been tested as though with fre,' said MT. Beck, will tend to benefit the entire cause of life insurance in this country more greatly than anything that has yet occurred.
 Tn the first place, 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.
 Tn the second place.. believe this agitation will further the cause of national supervision of life insurance companies. It is high time they were placed under the broad aegis of federal sprotection instead of being left to the whimsical scrutiny of forty-fve differ ent insurance departments.
 II believe the events of the last twelve months have left the American people in a frame of mind where they will 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 dignified in pur- pose as the life insurance companies.
 ITO achieve this we must first get congress to pass. the necessary leglsla- tion. We must further convince the supreme court that it's earlier definition of what rightly falls within the realm of interstate commerce has been too narrow in view of modern concentra- ton of capital. No action is needed by court, congress or president to make life insurance companies national in their scope. Steam and electricity have already made them so.
 "The great insurance concerns of the United States collect more money ev- cry year than the government collects in all it's custom houses and disburses more money than the government does. Ins tAe treasuries of these institGtlons there Is more money, 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. 'Dooiey' in his wisdom says that the supreme court follows the election returns. That, of course, is not true, but it is fact 1 that neither congress nor the supreme court, if this country is to continue as progressive as it 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 ago have been outgrown. I believe that na. tional supervision of life insurance is certain to come, though it may not be inaugurated for decade yet.
 ''It 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 dc. pendent upon the caprices of forty-five governments instead of one. It is wonder that they have been able to survive at all with so many masters to put their hands into their coffers when. ever they choose and help themselves to as much as caprice or greed may suggest"
 Mir. Beck started out by saying that | this had been the most unfortunate year In it's immediate results that the life insurance interests in the United States had ever been called upon tc pass through and that the effects ol the recent agitation would be noticea ble in life insurance returns for years to come.
 J. H. Jeffries. an insurance man oi Philadelphia. denounced the recent ad vocacy by an insurance paper of hs state government stepping fin and by eminent domain taking hold of one ol the great insurance companies.
 Tt is not reasonable to believe" said he. that the insurance companies would be more honestly or more eco nomicslly managed in the hands of ig norsnt or dishonest politicians thar