The San Francisco call., 1905-08-17
Important Conference at
Oyster Bay May Result
in Early Action at the
Next Session of Congress
FEDERAL SUPERVISION
URGED BY PRESIDENT
Senator Dryden of New
Jersey Will Present Bill
Embodying the Views
of the Chief Executive
Special Dispatch to The Call.

OYSTER BAY, Aug. 16.-Federal SUI
pervision of insurance was this after
noon the subject of a conference at
Sycamore Hill, so important that one
of the participants, James NJ. Beck, for
merly an Assistant Attorney General
of the United States and now special
counsel for the Mutual Life Insurance
Company of New York, having missed
the regular train from Long Island city
to Oyster Bay, chartered special train
in order to meet his engagement with
the President
The parties to the conference were
the President, Senator(Dryden of New
Jersey, president of the Prudential In
surance Company, and Mr.. Beck.
The President, since the disclosure
made during the last few months re-
garding the operations of the Equlta-
BILE Life Assurance Society. has mani
tested deep interest in the problem OF
national control of the insurance busi-
ness. In his message to Congress last
December he said
The business of insurance vltally al
fects the great mass of the people OF
the United States, and is national, not
local, in it's application. 1t involves a
multitude of transactions among the
people of the different States and be-
tween American companies and foreign
Governments. 1 urge that the Congress
carefully consider whether the power
of the Bureau of Corporations cannot
constitutionally be extended to cover
interstate transactions in insurance.
LEGISLATION NECESSARY.
Several months ago, at the Presi-
dents request, the subject of national
supervisory control of insurance was
investigated by Commissioner Garfield
of the Bureau of Corporations, and the
conclusion was reached that, under ex-
istng Federal laws, the insurance
business could not be supervised by the
Bureau of Corporations because In the
light of the constitution and in view
of certain decisions of the Federal
courts it was not regarded as Interstate
commerce.
At the last session of Congress Sen
ators Dryden, who is recognized as an
authority on life insurance, introduced
a bill in the Senate providing in brief
for supervisory control of interstate in
surance business by the Bureau of Cor
porations. 1t was along the lines Of
this measure that to-days conference
proceeded.
The President is known to be in
favor of Federal control of the insur-
ance business, If it can be brought
about constitutionally Whether it can
be- is the point yet to be determined.
That the Supreme Court of the United
States eventually will be called upon to
pass on the question there is little
lIdoubt.
At the conclusion of the conference
Senator Dryden talked frankly.
we discussed the whole subject of
Federal supervision of the Insurance
business" said he, "and our talk was
very satisfactory. Personally. 1 am
heartily in favor of such supervision
by the national Government. because it
would insure to companies doing busi-
ness in several or many States a well
defined and well considered set of regu-
lations and definite policy.
BILL TO BE REINTRODUCED.
Il introduced in the Senate, at the
last session, a measure providing for
supervisory control of interstate insur-
ance by the Bureau of Corporations L
did so because 1 wanted to call out sug-
gestions and to sound public opinion on
the subject. / had the bill referred to
the Judiciary Committee, in order that
II might be passed upon in it's incipi-
ency by the ablest lawyers in the Sem
ate. | expect to reintroduce the meas
ure early in the next Congress, perhaps
In slightly different form. The prin-
ciple of the new measure, however will
be the same as that of the first bill.
My opinion is that a very large ma
jority of insurance companies will
favor national supervision. Under ex-
listing arrangements we are obliged to
conform to different laws and reguIa-
tions in practically every State. The
laws and regulations are being changed
continually and different insurance de-
partments place different interpreta-
tions on the same law. What insurance
companies want is uniform, harmoni-
Gus and continuing policy and that we
believe is to be had only through ma
tional supervision"
Are there not legal. or constitu-
tional. obstacles to national control of
insurance." was asked.
"Ah. yes" replied Senator Dryden.
There are lawyers who maintain that
it is absolutely unconstitutional and
they point to decisions of our courts in
support of their contention"
Mr.. Beck expressed the belief that
IL the sugject were brought fairly before
the Supreme Court its decision would be
in favor of Federal control
While no announcement was made of
the conclusions of the conference If any
were reached, there is ample. authority
for the statement that President Roose-
velt will discuss the question of insur-
ance in his forthcoming message to
Congress, in the light of developments
In the last six months That he will
recommend the enactment of legisla-
tion providing for Federal supervision
of interstate insurance there is no room
for doubt.