The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-02-27
FEDERAL INSURANCE CONTROL
DRYDEN TO INTRODUCE A BILL
WITH THAT OBJECT.
President or the Prudential Company Says
the Flan Is TO Garry Out the Presi.
dents Recommendation lnten.
lion OF Pressing II at This Session,


WAsHrNdroN, Feb. Ex-senator Dryden
OF New Jersey president Of the Prudential
Life Insurance Company, will present a
bill in the Senate on Monday to carry into
effect the Presidents recommendation for
the regulation of insurance by the Federal
Government.
There is. of course. no hope for or inten-
ton of pressing the measure to final action
during theefew remaining days Of this
session, but it is intended TO start an agita-
ton of the subject in the hope of a sue
cessf,l issue In the next Congress.
The bill will set forth that policies Of
insurance are articles Of commerce and
instrumentalties thereof and that the
delivery Of contracts of insurance by a
CORPORATION of one State into another shall
be deemed transactions in Interstate or
foreign commerce. IA the case may be-
and therefore subject TO the control OF
the national Government Suitable pro-
vision is made for granting licenses by the
Federal Government TO corporations doing
interstate or foreign business.
1T NAV not be a perfect measure in all
ita details" Senator Dryden said tonight,
but its purposes are in the right direction
and having met the general approval OF
many eminent constitutional LAWYERS as
well az the administrative authorities,
shall take pleasure in presenting it. be-
lieving as do that any defects can easily
be remedied and that a law will finally be
evolved that will not only stand the test
OF the Supreme Court. but will prove OF
everlasting benefit To the community ut
large.
The questions involved are too grave
md far reaching in their Importance TO
permit Of any ha hazard methods in franz
ing legislation. The committee should
have all the light possible. Although
urgently demanded l should wish 10 see
action only after the most mature con-
sderation.
Briefly. may mention some of the
most direct benefits TO be derived from tho
passage Of the bill in question. First,
increased security Of insurance to 20 OooUp
poHcyholders Second. decrease IN cost
of insurance Third increased returns 10
polcvholders Fourth. decrease In the
burden of taxation Fifth. diminuion Of d
vast amount Of needless clerical labor 10
meet the requirements Of some fifty odd
different States and Territories and conse-
ouent decrease in expense rate. Sixth,
the stamping out Of fraudulent insurance
enterprises
with all these advantages and all In
the interest OF the public welfare surely
a business Of such vast proportions, a
business affecting SO many millions OF
homes. a business aggregating s2'OOoUooOoO
in funds held by level life premium life in
suranoe companies, with additions OF over
100000 annually, not TO mention tho
large sums invested in fire insurance and
kindred matters, is entitled to and indeed
demands Federal attention and safeguard
ing TO the fullest extent
Not only do the companies suffer from
oversupervision and overlegisation. re-
sulting in body OF laws often making
that "A duty in one State which might be 4
crime in another. but without exception
they are made the subject of excessive
taxation, which falls directly upon the say
ings of the policyholders
American life insurance companies alone
have paid in the way Of taxes the enormous
sum of over siO0,o00ooo within the past
forty years. and are now paying annually
in taxes. fees, &c, an amount aggregatlng
about 100000. With proper Fedora regu-
lation good portion OF those vast sums
would have been directly enjoyed by the
policyholders
AS illustrative Of this unjust tax burden,
may cite as particularly pertinent the case
OF the Wisconsin Insurance Department,
which last year collected more than $4,000
from insurance companies, while less than
$4,000 was required for the administration
Of the Department. North Carolina col
lected more than 500 oOO from the same
source while less than $1,000 was required
for the maintenance of the Department
Insurance companies have never OBJ
iected TO State supervision by the State
from which they derive their charter giving
them corporate existence, but what they do
object TO and protest against IL the un-
warranted and unjust interference with
the interstate business. which il manifestly
subject for proper control by the Federal
Government