The Providence news. (Providence [R.I.]) 1891-1906, 1905-12-16
REP. COCHRAN
HAS A REMEDY
Would Keep Insurance Com.
panIeS in Own State.
REFERRED TO Mr.. CLEVELAND
Said He Was on Financial vIgIlancs CON-
mlttss Without Previous Training, and
Knocks at Reorganization
REFERRED TO Mr.. CLEVELAND

Washington. Dec. 1s-The house yes
terday devoted four and three quarters
hours TO lively devate on the possibilities
Of controlling Insurance companies. Two
set speeches were the feature
One, by Mr.. Sherley of Kentucky. bore
on the doctrine OF states rights, and the
other. by Mr.. Cochran OF New York. re-
lated TO the actions Of the officers who
manage the big life insurance companies
OF his state. Mr.. CoclIIan proposed that
| congress. through its taxing power
| should confne all insurance companies to
the state in which they are organized.
Mr. Mann OF Illinois outlined a pro-
posed means OF control. which he will later
present in the form OF bill, leaving Il
to the insurance companies TO voluntarily
submit 10 federal examination and ap
proval. Mr.. Williams the minority leader.
concluded the debate holding that control
was possible. but not through the taxing
power.
Representative Sherley began the dis
cussion on the reference OF the insurance
recommendation to the ways and means
committee.
Mr.. Sherley said he favored emphasizing
the Importance Of state superN ison OF
such matters in preference 10 national
There was he said. a constant tendency
toward concentration or authority the
states were losing to the national gov
crnment and the national government was
tending 10 one supreme head, and that
head In power for life.
Mr. Crumpacker CInd) asserted that
for the house 10 vote TO send the ques-
tion OF insurance to the ways and means
comanittee, would be TO give notice 10
the country that congress had decided
| 1t could not control insurance
MUST BE UPRooTED.
| Mr.. Mann Gll) opposed reference to
| the ways and means committee. Nobody
believes that there will be legislation
enacted on this subject at this session of
congress. II is too grave question for
hasty action" concluded Mr.. Mann.
| MIR. Cochran said Il had been assumed
that corruption and vice were inherent
qualities in the insurance system. and
said: The gentleman from Kentucky
wants state regulation; the gentleman
| from Illinois wants federal jurisdiction.
| maintain the remedy can be had without
| either. Within my memory three large
companies have accumulated a billion and
! quarter of dollars, and IL VIII not be
generation before this sum will be
IS 000. 900. 900 or $4,000. 900 900. The utter
viciousness Of this condition is that these
!
have no personal interest in them This
system has been the growth OF but few
| systems and the system must be wholly
uprooted TO effect n cure"
COULDN'T LOCK THEM UP.
Mr.. Cockran's remedy was to confine in
| surance companies TO the state In which
| they were organized. the same as savings
| banks are confined. II was an awful
| spectacle. he said, to see these men mount
the witness stand and boldly confess their
| misuse OF the peoples funds.
The insurance officers did not go 20 JAIL
| but back TO their offices after their con-
| fessions.
He said Il was deplorable confession
! to make but he would assert that IL
| would be absolutely impossible TO put the
! possessor OF $l0.0oo,ooo in any jail in this
/ country.
! Asa proof that no special skill is neces-
snry in insurance for insurance purposes
| Mr. Cochran said 1--WE have hut 10 look
| at the method by which these three COM
| panies have undertaken 70 reorganize
| themselves.
What Ia the first thing they have done?
| Did they go out and look for insurance
| experts; not hy any means. The hrst
thing they did was TO send them all
| away.
HAS LOOKED OUTSIDE.
The Equitable company has been re-
organized on a somewhat peculiar basis.
very rich gentleman. whom we have
| the right | suppose to call a philanthro-
pist--for ne himself has said it. and IL Is
greatly TO his NEUTRALITY-SUSPICIOUS. pur-
chased the control OF this company and
given $4,000 for the stun That can pay
him about 5000 a year
That is to say. obviously through phil
anthropy he has given an earning power
OF N25.GO for $500. He Is too good
business man TO have done that as
matter OF commerce. There Ia no ex-
planation for Il except philanthropy.
Baughter)
Now In order to appcase the popular
mind on the philanthropic enterprise, has
he gone 10 the insurance world TO find
this talent that is worth $4,000 year, or
5000 a year,
by no means He ,has gone outside
and appointed a kind OF financial vigilance
committed and not one OF the vigilantcs
has eves had anything to do with an In
surance company. except that possibly
one of them may have borrowed money
from a.
"A very eminent statesman. ono of tho
most illustrious VI our time has been
called from the classic shades of Prince
ton. where he has been spending the de-
| cline ~ a,, iliustrfous life In cOmDOging