Omaha daily bee., 1905-08-17
SUPERVISION OF INSURANCE
Federal Control Of Interstate Transactions
Subject Of Conference At Oyster Bay.
PRESIDENT FAVoRS PASSAGE OF LAW
Question of COnstitutionaIity of such
an Act VIII he Presented
TO the Supreme
Court.
PRESIDENT tAvoRs PASSAGE OF LAW


OYSTER BAY, n. Y, Aug. 16-Federal
supervision Of insurance was this afternoon
the subject of a conference at Sycamore
Hill, so important that one Of the par
ticipants James NJ. Beck, formerly an
assistant attorney general OF the United
States and now special counsel for the
Mutual Life Insurance company OF New
York. missing the regular train from Long
Island city to oyster Bay chartered a spe-
ciRl train in order to meet his engagement
with the president.
The parties to the conference were the
president, Senator Dryden of New Jersey,
president of the Prudential Insurance COM
pany and Mr.. Beck.
F, Senator Dryden arrived at y 20 this after
noon. Mr. Beck reached here fifteen minutes
later and in time to join the presidents
luncheon party. which consisted of AM
! bassador Hengelmuller of Austria Hungary,
Senator Dryden, Charles II. Keep, assistant
secretary Of the treasury, and Robert
Bridges OF New York, an author and maga-
zine writer, who is a personal friend Of
the president. The conference followed the
luncheon.
view of the President.
The president for a considerable time but
| especially since Ine ulHClOSuTtS Ildut uuI
| ing the last few months regarding the
operations Of the Equitable Life Assurance
society, has manifested a deep interest in
the problem of national control Of the in
surance business. In his message to con-
| gress last December he said:
| The business of insurance vitality Affects
| the great mass of the people of the United
States and is national, not local, In Its
| application. II involves a multitude of
] transactions among the people of the diff
| ferent states and between American COM
panles and foreign governments. / urge
that the congress carefully consider whether
! the power of the bureau Of corporations
| cannot constitutionally be extended to cover
| interstate transactions in insurance.
MIR. GRrneld's Opinion.
Several months ago at the president
request the subject of national supervisory
control of insurance was investigated by
Commissioner Garfield of the bureau OF
corporations. when the conclusion was
reached that under existing federal laws
the insurance business could not be super
vised by the bureau of corporations because
in the light of the constitution and in view
of certain decisions of the federal courts
it was not regarded as interstate com
merce
At the last session of congress Senator
Dryden, who is recognized as an authority
on life insurance. introduced a bill in the
control of interstate insurance business by
the bureau of corporations. 1t was along
the lines of this measure that today's con.
ference proceeded. The president is under
stood to be in favor of federal control OF
the insurance business If 1t can be brought
about constitutionally. Whether it can bt
is the point yet to be determined That
the. supreme court of the United States
eventually will be called upon to pass upor
the question there is little doubt.
Attitude of Insurance Companies.
At the conclusion OF the conference Sena
tor Dryden talked frankly. He said:
I We discussed the whole subject Of fed
| eral supervision of the insurance business
and our talk was very satisfactory. Per
| sonally i am heartily in favor OF suci
supervision by the national government
ing business in several or in many states
a we'll defined and we'll considered set o
| regulations and a definite policy.
| | introduced in the senate at the las
session a measure providing for supervisor,
control of interstate insurance by the bu
reau of corporations. l did so because
wanted to call out suggestions and T.
sound public opinion on the subject
had the bill referred to the Judiciary com
| mittee In. order that 1t might be passe,
upon in its incpiency by the ablest law
yers in the senate. l expect to reintro
gress. perhaps in a slightly different form
. The principle of the new measure, how
ever, will be the same as that OF the hrs
| bill.
VIII Go to Supreme Court.
Mr.. Beck expressed the belief that
; the subject were brought fairly before tn
supreme court its decision would be 4
favor of federal control. He said:
The supreme court never has been calle
, upon to pass upon a federal statute bear
ass9st 9s Wis VTgnS' state ia% ss Was nvoveS
: My judgment is that II congress shoul
! ! enact a law providing for federal contro
, to be constitutional l believe such a lay
! would be enacted, and, of course, our frs
effort will be to obtain a decision regard
: ing II by the United States supreme cour
: While no announcement was made OF tn
Z conclusion of the conference, II any wer
) reached there was ample authority for tn
statement that President Roosevelt wi
: discuss the question of insurance in hi
3 Forthcoming message to congress in tn
= light OF developments in the last 81
a months; that he will recommend the er
( actment OF legislation providing for federl
[ supervision of interstate insurance there
: no room for doubt.
9 IrreRulR rifles in Print shop.
h Assistant Secretary Charles ]. Keep {
y the Treasury department, chairman of wha
is known as the Keep commission az
pointed by the president a few month
ago to make a general investigation int
, the organization, personnel, correspond
Z ence, methods Of purchase OF supplies an
of keeping accounts OF the various gov
ernment departments in Washington cam
to Oyster Bay to present the report an
hndings of his committee in the recent II
vestigation of the proposed purchase
typesetting machines for the governmer
printing ONCE. The Keep commission cor
sists of five members Mr. Keen. chairman
James r. GARFIELD, commissioner OF col
3 porations; Assistant Secretary LawrenC
o. Murray OF the Department of Labc
and Commerce; Frank H. Hitchcock, az
sistant postmaster general. and Giffor
4 IlI-...L.na- IL u EllranlL ~ EnraaLr.-