Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-12-05
INSURANCE.
Congress should Consider What Pow
er ID Has Over Subject.

The great insurance companies at
ford striking examples OF corporal Ions
whose business has extended SO far be-
yond the Jurisdiction of the states which
created them az to preclude strict en-
forcement of supervision and Tegula-
ton by the parent states. In my last
annual message | recommended that
the Congress carefully consider whetl-
er the power OF the bureau of corpora
tions cannot constitutionally be ex-
tended to cover interstate transactions
in insurance" Recent events have
emphasized the importance OF an early
and exhaustive consideration OF TINS
question, to see whether II is not pos
sible to furnish better safeguards than
the several states have been able to
furnish against corruption of the fla-
grant 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 hon
esty and dishonesty. they draw the line
only this side OF what may be called
law-honesty. the kind Of honesty neces-
sary IN order to avoid falling into the
clutches OF the law, OF course the onNy
complete remedy for this condition must
science a higher sense OF ethical con-
duct In the community at large. and es-
pecially among business men and In
the great profession OF the law, and In
the growth of a spirit which condemns
all dishonesty, whether in rich man or
in poor man, whether II takes the
shape OF bribery or OF blackmail But
much can be done by legislation which
l. not only drastic but practical. There
is need OF a far stricter and more uni
form regulation Of the vast insurance
interests Of this country. The United
States should in this respect follow the
policy OF other nations by providing
adequate national supervision Of conf
mercia interests which are clearly ma
tional In character. My predecessors
have repeatedly recognized that the
foreign business Of these companies Is
an important part of our foreign COM
mercial relations. During the admins
tratlons of Presidents Cleveland, Har-
rison. and Mckinley. the state depart
ment exercised its influence, through
Diplomatic channels, to prevent unjust
discrimination by foreign countries
against American insurance companies
These negotiations illustrated the pro-
priety Of the Congress recognizing the
national character Of Insurance. Tor In
the absence of federal legislation the
state department could only give eA-
nressIon TO the wishes Of the authorl-
ties OF the several states, whose policy
was Ineffective through want of uni
formity.
I repeat my previous recommen-
da,Ion that the Congress should
also consider whether the federal
government has any power or
owes any duty with respect to do
nestle transactions In insurance
OF an interstate character That state
supervision has proved inadequate Is
generally conceded. The burden upon
Insurance companies, and therefore
their pOllcyholders, OF conflicting reg
ulatlons OF many states. is unquestlon-
ed. while but little effective check Is I'M
posed upon any able and INSCRIPTIONS
man who desires TO exploit the COM
pany in his own interest AZ the ex-
pense OF the policyholders and Of the
public. The inability OF state to reg
ulate effectively insurance corporations
created under the laws Of other states
and transacting the larger part OF thelr
business elsewhere Is also clear As
remedy FOR this evll OF conflicting. IN
effective and yet burden some regula-
lions there has been for many years a
Widespread demand for federal super
vision, The Congress has already rec
ognlzed that interstate insurance may
be a proper subject for federal legisla-
ton. for in creating the bureau OF corr
porations II authorized Il To publish and
supply useful Information concerning
Interstate corporations, including corr
porations engaged In insurance" II Is
obvious that II the compilation OF sta
tlstlcs be the limit OF the federal power.
II IL wholly ineffective to regulate this
form OF commercial Intercourse betWce
the states. and as the Insurance BUSH
ness has outgrown IN magnitude the