The news & observer., 1905-12-06

ment which treats each man according
of his merits, another standard in ac-
cordance with which all men of one
class are favored and all men of
another class Disseminated against
we shall do irreparable damage to the
body polite. | believe that our peo-
pie are too sane, too self-respecting,
too fit for government, ever to
adopt such an attitude. This gov
ernment is not and never shall be gov
ernment by a plutocracy This gov
ernment is not and never shall be gov
ernment by q mob. 1t shall continue
to be i'm the future what it has been
in the past, a government based on
the theory that each man, rich or
poor, is to be treated simply and solely
on his worth as man, that all his
personal and property rights are TO
be fe-guarded, and that he is Meth
er to wrong others nor to suffer wrong
from others.
The noblest of all forms of govern
ment is self-gOvernment, but it is also
the most difficult. We who possess
this priceless boon, and who desire to-
hand it on to our children and our
children's children, should ever bear
in mind the thought so finely express"
ed by Burke: Men are qualified FOR
civil liberty in exact proportion to
upon their own appet,teS; in proper
tiOn as they are disposed to listen to
the COunsels of the wise and good in
preference to the fiattery of knaves
Society can not exist unless a CONTROL"
ing power upon will and appetite be
placed somewhere. and the less of if
there be within the more there must
be without. IT is ordained in the
eternal constitution of things that men
of Incorporate minds can not be free
Their passions forge their letters"
Insurance.
The great insurance companies af~
ford striking examples of corporations
whose business has extended so far
beyond the jurisdiction OF the States
which created them as to preclude
strict enforcement of supervision and
regulation by the parent States. Ir
my last annual message l recommend.
ed that the Congress carefully con.
slider whether the power of the Bureau
of Corporations can not constitutions
ally be extended to cover Interstate
transactions in insurance" Recent
events have emphasized the import
ance Of an early and exhaustive con.
sheraton Of this question, to sec
whether it is not possible to furnish
better safeguards than the several
States have been able to furnish
against corruption of the fragrant kind
which has been exposed. IT has been
only too clearly shown that certain OF
the men at the head Of these large
corporations take but small note OF
the ethical distinction between honesty
and dishonesty; they draw the line
only this side Of what may be called
aw-hOncsty, the K nd of honesty
necessary in order to avoid falling int
the clutches of the law. OF course
the only complete remedy for this
condition must be found IN an aroused
public conscience, a higher sense Of
ethical conduct in the community az
large, and especially among business
men and in the great profession OF
the law, and in the growth Of a spirN
which condemns all dishonesty
whether in rich man or in poor man.
whether it takes the shape of bribery
or of blackmail. But much can be
done by legislation which is not only
drastic. but practical. There is need
Of a far stricter and more uniform
regulation of the vast insurance in"
terests of this country. The United
States should in this respect follow the
policy of other nations by providing:
adequate national supervision of com"
mercial interests which are clearly
national In character. Ny predeces~
sors have repeatedly recognized thai
the foreign business of these com"
panies IS an important part of our
foreign commercial relations. Dur
ing the administrations of Presidents
Cleveland, Harrison and Mckinley the
State Department exercised its in"
fuence, through diplomatic channels,
to prevent unjust discrimination by
foreign countries against American
Insurance companies. These negotia"
tons illustrated the prOpriety of the
Congress recognizing the national
character of insurance, for in the alb
sence of Federal legislation the State
Department could only give expression
to the wishes of the authorities of the
several States. whose policy was inef-
fective through want of uniformity.
l repeat my previous recommended.
ton that the Congress should also
consider whether the Federal govern
ment has any power or owes any duty
with respect to domestic transactions
in insurance of an interstate char
acter. That State supervision has
proved inadequate is generally con-
ceded The burden upon insurance
companies, and therefore their policy
holders. Of conflicting regulations of
many States, is unquestfoned while
but little effective check is imposed
who desires to exploit the company
in his own interest at the expense OF
the policy holders and of the public.
They inability of a State to regulate
effectively insurance corporations ere"
ated under the laws of other States
and transacting the larger part Of
their business elsewhere is also clear.
AS a remedy for this evil of conflicting,
ineffective. and yet burdenSOme regu"
lations there has been for many years
a widespread demand for Federal sup
ervision The Congress has already
recognized that Interstate Insurance
may be a proper subject for Federal
legislation, for in creating the Bureau
of Corporations it authorized it to
publish and supply useful information
concerning Interstate corporations,
"including corporations engaged in in
sl1rance." 1t is obvious that if the
compilation of statistics be the limit
of the Federal power, it is wholly in
effective to regulate this form of COM
merciaI intercourse between the State,
and as the insurance business has out
grown in magnitude the possibility of
ADEQUATE state supervision, the Con-
eress should carefully consider wheth-
er further legislation can be had. What
is said above applies with equal force