The news & observer., 1905-12-16
Paying Devoirs to the In
surance Chiefs.
THE FAME OF INFAMY
The Question of Controlling Insurance
Companies Arouses a Stirring
Debate. Williams Declares That
Control is Possible. Mann
to Offer Bill.
to Offer Bill.
,pecial to News and Observer

especial to News and OBSERVER
Washington, Dec. 15.-The House
today devoted fGur and three-quartel
hours to lively debate on the posi-
bilities of controlling insurance COM
panies. Two set speeches We're the
features. One by Mr.. Shirley. of Ken
lucky, supported the doctrine OF
States rights, and the other by Mr.
CockrK. of New York, related to the
actionfof the officers who manage the
pig Me insurance companies of his
State. Mr.. ockran proposed that Con-
gress through its taxing power should
confine all insurance companies to the
State in which they are organized.
Mr.. Mann. of Illinois. outlined a
proposed means of control he viii
later present in the form of a bill.
leaving it to the insurance companies
voluntarily to submit to federal eX.
animation and approval. Mr.. VIII
liams, the minority leader, concluded
the debate, holding that control was
possible but not through the taxing
power.
Digressions were INDUCED in, first
to send a message to the Senate re-
turning its bill regarding canal bonds
as an usurpation of the constitutional
rights of the House or originate rev.
enue legislation and again to discuss
hazing at Annapolis. No conclusion
was reached on the committee refer
ence of the insurance feature of the
Presidents message, which is the mat
ter under consideration. and the de-
bate will proceed tomorrow.
The Speech of Cochran.
Mr.. Cochran in his speech COM
mented upon the methods of reform
adopted by the insurance companies
saying:
THE Equitable Company has been
reCrganized on a somewhat peculiar
basis. A very rich gentleman whom
we all have the right L suppose to call
philanthropist (laughter) has pur-
chased the control of this company
and given S2,500.000 for stuff that can
pay him but $500 a year.
Nov in order to appeaSe the pop
ular mind on the philanthropic enter
prise what has he done? Has he gOnl
TO the insurance world to find this
talent that is worth $50 900 a year OIL
$4,000 a year,. BY no means. He
has gone outside and appointed a KIND
of financial vigilance committee and
not one of the vigilantes has ever had
anything to do with an insurance com
pany.
"And in order to make effective this
reform gentleman is selected WhC
may have been good railroad man
/ believe he waS--and we have the au-
thority of the President for it, that ht
was an ecellent cabinet officer. toe
good in fact to remain Gaughter) and
this gentleman, who in the walks OF
life where he had prove ris efficiency
do not believe commands over $25,
900 or 100000 a year, gets $4,000
in a calling for which he has had nc
qualification or preparation whatever
Now that is reform as the insurance
companies themselves concede it.
"In the Mutual we have the worry
board of trustees who had themselve;
either been active agents Of these
frauds or been privy to them, choosing
a new head, and that selection is gen
orally attributed to the influence of {
gentleman who had Ieaped into pc
jculiar fame through magazine ar
ticles. and which seem to describe hin
as the triumphant and successful here
of a hundred larcenies Daughter.
"In the New York Life we find tht
Vice-president after avOWal of crime
after swearing on his own oath tha
he had purchased bonds one day and
sold them the next day to the same
company at an advance of two PEI
cent. driven out by the indignation Ot
the community, finds himself follow
ed by the aduteratiOn of this board
and complimentary resolutions-cQm
plimentary to his e. cheney in plundel
have been spread through the pub
lie press as advertisements paid fol
out of the funds of the policy-hoidcr'
whom he had robbed
"Rockefeller's fortune is Il monu
ment to crime" declared Mr. Cock
ran. "and he does not denv it "
Mr.. Adams. of Pennsylvania. re-
called the action of Congress in restOr
ing to the acaden1v midshipmen re
Gently expelled for hazing and trace
the latest trouble at the academy tC
the clemency of Congress. Mr.. Adam!
denounced the code of honor of tht
academy.
Mr.. williams of Mississippi criti
cized life insurance officers in New
York. He declared that if they haf
not stolen they had abused their trust
especially when they gave large cam
paign contributions where the mone'
was not their own.
The House adjourned until tomor'
row.
JOHN I. GREGORY DEAD.