Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1905-12-08

interests Of this country. The United
States should In this respect follow tho
policy Of other nations by providing
adequate national supervision of COM
merefal interests which are clearly ma
tional in character. My predecessors
have repeatedly recognized that the
foreign business of these companies IL
m important part Of our foreign COM
mercial relations. During the admin.
astrations of Presidents Cleveland,
Harrison and Mckinley the state de-
partment exercised its influence.
through diplomatic channels, to pre-
vent unjust discrimination by foreign
companies. These negotiations illus
Grated the propriety of the congress
recognizing the national character Of
insurance, for in the absence Of fed
eral legislation the state department
could only give expression to the
wishes of the authorities of the several
states, whose policy was ineffective
through want of uniformity.
1 repeat my previous recommended
ton that the congress should also con-
slider whether the federal government
has any power or owes any duty with
respect to domestic transactions in in
surance of an interstate character.
That state supervision has proved in
adequate is generally conceded. The
therefore their policy holders, of con-
ficting regulations Of many states, Is
unquestioned, while but little effective
check Is imposed upon any able and
interruptions man who desires to ex-
plot the company in his own interest
at the expense Of the policy holders
and of the public. The inability Of a
state to regulate effectively insurance
corporations created under the laws Of
other states and transacting the larger
part of their business elsewhere is
also clear. AS remedy for this evil
OF conflicting. ineffective, and yet bur-
densome regulations there has been
Tor federal supervision. The. congress
has already recognized that interstate
insurance may be proper subject for
federal legislation, for in creating the
bureau of corporations it authorized
1T to publish and supply useful in
formation concerning interstate COR
porations Including corporations en-
that if the compilation of statistics be
the limit of the federal power it is
wholly ineffective to regulate this
form Of commercial intercourse be-
tween the states, and as the insurance
business has outgrown in magnitude
the possibility of adequate state SUI
pervision, the congress should care
fully consider whether further legisla-
ton can be had. What is said above
applies with equal force to fraternal
and benevolent orga nizations which
contract for life insurance
Under the subject Of national revenues
the president makes a plea for the enact
ment of reciprocal arrangements between
this and other countries. but does not ask
for any tariff legislation at the present
time. In the same connection he asks for
economy in appropriations
Business Methods in Departments.
On the subject of graft in the several
government departments that have been
under investigation he says:
At various times I have instituted
Investigations into the organization
and conduct of the business of the ex-
ecutive departments. While none Of
these inquiries have yet progressed
far enough to warrant final conclu-
and emphasized the general impress
sion that the organization of the de-
partments is often faulty in principle
and wasteful in results while many
of their business methods are anti
quated and inefficient There is every
reason why our executive govern
mental machinery should be at least
as we'll planned economical and
efficient as the best machinery Of the
great business organizations, which at
present is not the case. To make it
SO is a task of complex detail and es-
sentially executive in it's nature; prob
ably no Legislative body, no matter
how wise and able. could undertake it
with reasonable prospect of success.
I recommend that the congress con-
slider this subject with view to pro-
vide by legislation for the transfer
distribution. consolida ton and ASST en-
ment of duties and executive organiza-
tons or parts of organizations, and
for the changes in business methods,
within or between the several depart
ments, that will best promote the
economy, efficiency and high character
Of the government work.
Federal Elections.
On the subject of federal elections he rec
ommends that it be made unlawful for po-
litical parties to receive campaign con-
tributions from the corporations, and also
that it be made unlawful for corporations
to give such contributions and in this con-
nectiOn he says:
Contributions by corporations to any
purpose should be forbidden by, law;
directors should not be permitted to
use stockholders money for such pur-
poses; and, moreover, a prohibition Of
this kind would be, as far as it went.
an effective method of stopping the
evils aimed at in corrupt practices
acts. Not only should both the ma
tional and the several state legisla-
lures forbid any officer of a corpora
ton from using the money of the COR
poration in or about any election, but
they should also forbid such use Of
money in connection with any legisla-
ton save by the employment Of coun-
sci in public manner for distinctly le-
gal services.
The Hague Conference.
The Hague conference and the SUBJ
ject of arbitration generally is treated
Of at considerable length, and in this
connection an explanation is given OF
this governments connection with the
coming conference in the following
words:
The first conference of nations held at
The Hague in 1899. being unable to dis
pose of all the business before it, recon-
mended the consideration and settlement
of a number of important questions by
another conference to be called subse-
quently and at an early date. These
questions were the following: % The
rights and duties of neutrals: (2) the
umitatio Of the armed forces on land
and sea, and of military budgets; t3) the
use Of new types and calibers of military
and naval guns; az the inviolability Of
private property at sea in times of war;
~ the bombardment of ports.-.cities and
villages by naval forces. In October,
1904. at the instance of the Interparlia-