Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-12-16
HOUSE TALKS INSURANCE
Day Devoted to Lively Debats on Its
Authority to Take Action,
UNANIMOUS ReBuke TO SENATE
BiiI Authorizing Canal Bonds sent
Back with Statement that II
U,urps Rights OF the
House.
u N .-,,,,,,,.,


Sherley Of Kentucky, bore on the doctrine
of states rights, ana the other, by Mr..
Cochran Of New York, rela ting to the ac-
tions of the officers who manage the big
life insurance companies of his state, Mr..
Cochran proposing that congress through
It's taxing power should confine all insur-
ance companies to the state il which they
are organized
Mr. Mann of Illinois outlined q proposed
means of control he will later present in
the form of bill. leaving il to the insur-
ance companies voluntarily to submit 20
federal examination and approval Mr..
Williams, the minority leader, concluded
the debate, holding that control was pos
sible but not through the taxing power.
Digressions were INDUCED in, FIRST. TO
send message to the senate returning its
bill regarding canal bonds as an usurpa-
tion of the constitutional rights of the
house to originate revenue legislation. and
again, TO discuss haEing at Annapolis. No
conclusion was reached on the committee
in reference to the insurance feature of
the presidents, which is the matter under
consideration and the debate will proceed
tomorrow.
Representative sherley OKy.) began the
discussion on the reference on the insur-
ance legislation TO the ways and means
committee. He had hardly begun wnen "a
message from the senate was received an
nouncing the senate had passed a bill re-
moving disabilities from the canal bonds.
Mr.. Payne interrupted the proceedings to
offer a resolution regarding the bill, stating
that "the bill in the opinion of the house
contravenes the first clause of the seventh
section of the first article OF he constitu-
tion and is in infringement of the pre-
rogatives of the house, and that the senate
bill be taken from the speakers table and
be respectfully returned to the senate with
a message communicating this resolution
| A rising vote was had, and. as every one
stood UP in favor of the resolution. the
= speaker announced, while the house burst
I into laughter. 1856 members have voted in
the Affirmative"
The depression occupied less than ten
minutes. when Mr.. Sherley resumed. He
opposed a reference OF the subject. either
| to the ways ana means or interstate and
| foreign commerce committees.
SherIey for states Rights.
! All of the startling disclosures regarding
! life insurance, Mr.. Sherley said, had been
made by state agencies. and he favored
emphasizing the Importance of state super
vision Of such matters in preference to
Irrational There was. he said. constant
/ tendency towards concentration of author
ity: the states were losing to the national
government and the national government
/ was tending to one supreme head and that
head in power for life.
, Mr.. Driscoll IN. " asked II there was
not the same tendency on the part of the
! democrats.
Mr.. sherley admitted there was and re-
gretted 1t.
Announcing that on the question OF
states rights he was a democrat and had
always been one, Mr.tGrosvenor Co) asked
how two governmentk. state and national,
could administer control OF the same sub
ject without one becGtning supreme at the
expense of the other. Mr.. Sherley said
there had been nothing in the New York
insurance situation so far that New York
was not able to handle. This defense OF
state sovereignty was cheered on both sides
OF the chamber.
II was insisted by Mr. Mann Gll) that
there was not a line in the president
message which referred TO taxing insur-
ance. He opposed reference TO the ways
and means committee. While he had in
iroduced a bill to give the government
exclusive jurisdiction OF insurance. he said
he had some doubts as to the wisdom OF
that there will be legislation enacted or
this subject at this congress. II is toe
grave a question for hasty action con-
cluded Mr.. Mann.
Cochran for Taxation.
Mr.. Cochran IN. ~ maintained that tho
power OF taxation was a legitimate weapdr
for the control of privileges Of commerce
The reason the senate was steadily increas
| t,oa All vvas hACauaa
stantly exercised every vesuge Of its power
Emphasizing the relations OF the houses
he asserted that powers unused woulC
decay and that the house now possessed
all the power necessary to establish 1t,
predominancy.
Mr.. Cochran said Il had been assumed
that corruption and vices were inheren
quantities In the system and said ''Th'
gentleman from Kentucky wants state reg
ulation: the gentleman from Illinois wants
federal Jurisdiction. ] maintain the remedy
can be held without either.
.ryithin my memory the three large com
nanies have accumulated 81, go 10000 and I
| win not be a generation before this sun
will be IS ZOO, 10000 or 5000 o00 COO, The utte
v,ciousness Of this condition is that thes
funds are under the control of men VIII
have no personal interest in them. Thi
money Is a trust fund and yet the person
who are the benehciaries of the trust can
| not have a word TO say regarding them
This system must be wholly uprootsd TO ef
feet cure.
Mr.. Cockran's remedy was to eonfne in
Surance companies to the state I'm whic
, they we're organized, the same as saving
banks are confined. Believe me- he de
clared. there Is not the need Of paying
salary OF $4,000 q year by any insuranc
/, company to protect its policyholders. bu
IL is necessary to get a man 10 swindl
them"
, II was an awful spectacle, he said ia
these men TO mount the witness stand an
, boldly confess their misuse of the people
, funds. There is now the spectacle In Ne'
! York. he said. OF the district attorney WORK
, ing day and night 20 prosecute those guilt
of violating the purity OF the ballot bo,
which was commendable but al the sam
time the Insurance officers did not go TO ia
: but back 10 their Offices after their confe.
sions. He said II was a deplorable confe,
sion 70 make. but he would assert that
would be absolutely impossible 10 put III
possessor OF slo,oOoOco in any jail in tn
country.
: Gambling ~ Insurance remn N ie.
Mr.. Cochran described the method
r stock gambling pursued by Insurance con
A