Warren sheaf., 1905-10-19
WOULD REGULATE
LIFE Insurance
PRESIDENT ROOSEVELT FAVORS
FEDERAL CONTROL OF THE
COMPANIES.
Measure for Government Supervision
to Be introduced in Congress
Senator Dryden Explains the Pro-
posed Law.

New York, Oct ia definite plan
6or government control of life insur.
ance has been agreed upon, and con,
gress will be asked to pass the neces.
eary legislation at the session soon
TO open. Senator John F. Dryden, OF
New Jersey, will introduce the bill,
bnd President Roosevelt will back it
with all his influence The ideas in
the bill, which declares life insurance
Interstate commerce, are partly those
Pf the president, and partly Of sena-
Dor Dryden, who Is president of the
Prudential Life Insurance company,
tnd one of the highest living author
eties upon insurance matters.
Court Decision Necessary.
President Roosevelt believes that
the constitutional question involved
gan be solved only by congressional
legislation, and subsequent test of
such legislation before tho United
States supreme court. To secure the
passage of this legislation will be one
of the principal tasks this winter.
Fhe alleged unoonstitutionality Of all
legislation of this character has al
ways been urged against the passage
of any legislation for the control of
insurance. The decision of the gu
preme court In the case of Paul vs..
Virginia apparently was to the effect
that insurance is not interstate COM
merce, and that it can be regulated
only by the state authorities. The an
ewer to this contention is that con-
gress never has passed a law declar-
ing insurance to be interstate COM
merce, and that the supreme court
would take different view Of the
matter if such law were passed.
Measure Explained.
my life insurance BILL" declared
6enoator Dryden, will provide an
amendment to the act which estab-
lished the department of commerce
and labor. 1t proposes an officer
called superintendent of insurance, in
charge of an insurance division, and
who shall be appointed by the presi.
dent, with confirmation by the senate.
Associated with him will be an Off.
cial to be known as the national act.
mary. The bill will provide that the
policies of insurance are deemed to
be articles of interstate commerce,
This act will not apply to any corpora.
tion transacting insurance business
exclusively in one state, and will have
no application to any religious, clrari.
table or fraternal institution.
= The superintendent of insurance
will have. the power to fix fees, es.
tablish rules and regulations for con-
ducting the business. Annual reports
will be made to the superintendent by
corporations, and that officer will be
vested with the power to examine into
the business and affairs of the cor
porations, for the purpose OF detsrmin-
ing their solvency and trnstwerthi-
ness. Each corporation will bs com
PEELED to deposit with the United !
States treasurer, as a guarantee for |
the faithful performance of it's con-
tracts, the sum of 100000. Licenses
Will be issued TO insurance corpora
tons by the superintendent, providing
the companies have complied with the
luleS. Ine superintendent Will have
the power to revoke these licenses for
cause ~.
1T is my firm conviction that such
IN act would be productive of most
excellent results, Increasing the securi-
" of insurance to the policyholders,
diminishing the now considerable
amount of clerical labor to meet the
of some 50 different
states and territories, decreasing the
burden of taxation, increasing the re-
turns to policyholders, and thus de-
'reasing the cost of insurance, broad
ening the scope of administration, and,
n "a word, nationalizing the bksiness."
Bankers Adjourn.
Washington, Oct. 14.-The ehirty-