The Birmingham age-herald., 1905-12-06
REVIEWS CONFRONTING THE NATO

them to preclude strict enforcement of supervision and regulation by the parent states. In my last annual message I recommended that the Congress care fully consider whether the power of the bureau of corporations cannot eonstltu- tionally be extended to cover interstate transactions In insurance" Recent events have emphasized the importance of an early and exhaustive consideration of this question, to see whether it is not possible to furnish better safeguards than the several states have been able to furnish against corruption of the fragrant kind which has been exposed. It has been only too clearly shown that certain of the men at the head of these large corpora uons take but small note of the ethical distinction between honesty and dishon- esty; they draw the line only this side of what may be called law-honesty, the kind of honesty necessary in order to avoid falling into the clutches of the law. Of course the only complete remedy for this condition must be found in an aroused public conscience. higher sense of ethical conduct in the community at large, and especially among business men and in the great profession of the law, and in the growth of a spirit which con demns all dishonesty whether In rich man or in poor man, whether 1t takes the shape of bribery or of blackmail. But much can be done by legislation which is not only drastic but practical. There is need of a far stricter and more uniform regulation of the vast Insurance interests of this country. The United States should fin this respect follow the policy of other nations by providing adequate national supervision of commercial interests which are clearly national in character. My predecessors have repeatedly recognized nf thaEa panies is an important part of for eign commercial relations. During the administrations of Presidents Cleveland, Harrison and Mckinley the state depart- ment exercised it's influence, through dip- lomatic channels, to prevent unjust dis orimmination by foreign countries against American insurance companies. These negotiations illustrated the proprie- ty of the Congress recognizing the na- tional character of insurance, for in the absence of federal legislation the state department could only give expression to the wishes of the authorities of the sew eral states, whose policy was ineffective through want of uniformity.
 I repeat my previous recommendation that the Congress should also consider whether the federal government has any power or owes any duty with respect to domestic transactions fin insurance of an interstate character. That state su- pervision has proved inadequate is gen. erally conceded. The burden upon in surance companies, and therefore their policy holders, of conflicting regulations of many state Is unquestioned, while but little effective check Is imposed upon any abla and interruptions man who desires to exploit the company in his own fn- terest at the expense of the policy hold CTS 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 con- flicting. ineffective and yet burdensome regulations there has been for many years a widespread demand for federal supervision. The Congress has already recognized that interstate insurance may be a proper subject for federal leglsla- tion for in creating the bureau of cor porations 1t authorized 1t to publish and supply useful information concerning in- terstate corporations, Including corporal tions engaged in insurance" It is obvious that if the compilation of statistics be the limit of the federal power 1t is who'll ly ineffective to regulate this form Of commercial intercourse between the states, and as the insurance business has outgrown in magnitude the possibility or adequate state supervision the Congress should carefully consider whether fur ther legislation can be had. What is said above applies with equal force to fra ternal and benevolent organizations which contract for life insurance.
 The Revenues.
 There is more need of stability than of the attempt to attain an ideal perfection fin the methods of raising revenue, and the shock and strain to the business fnrl1 change in these methods render such change inadvisable unless for grave req son. It Is not possible to lay down any general rule by which to determine the moment when the reasons for will out weigh the reasons against such change Much must depend, not merely on the needs, but on the desires. of the people as a whole, for needs and desires are moi necessarily identical Of course nc change can be made on lines beneficial to- or desired by, one section or one state only There must be something like a general agreement among the citizens ol the several states. as represented in the Congress, that the change Is needed and desired in the interest of the people as a whole; and there should then be . sincere, intelligent and disinterested effort to make it in such shape as will com bine. so far as possible, the maximum ol good to the people at large with the 
 minimum of necessary disregard for the special interests of localities or classes But in time of peace the revenue must on the average, taking series or years together, equal the expenditures or else the revenues must be increased. Las year there was a deficit. Unless ou' expenditures can be kept within the rev enues then our revenue laws must DO readjusted. It is as yet too early to al tempt to outline what shape such re adjustment should take. for 1t IS as ye too early to say whether there will o' need for it. It should be consldere. whether it is not desirable that the tarin laws should provide for applying al against or in favor of any other natloI maximum and minimum tarin rates es tablished by the Congress, so as to SC cure a certain reciprocity of treatmen between other nations and ourselves Having in view even larger considera tions of policy than those of purely economic nature, 1t would, in my Judg ment be well to endeavor to bring abou closer commercial connections with th' other peoples of this continent. an