Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1905-06-06

have much to recommend them.
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the girdle, but are not essential. as the
girdle or bodice part Of the skirt Is
boned and may be attached. .. =
- 49, 5 ; - i
GENERAL INSURANCE LAW.
Interesting Discussion Of Question Of
Federal Control.
A good many people think, says
William E. Curtis in a New York let
ter to the Chicago Record Herald, that
the disclosures that have been made
concerning the management Of the
Equitable company demonstrate the
necessity of having all life insurance
business under the supervision Of the
Federal government. Shortly before
the Inauguration, whether he was
aware or not Of conditions that have
since been disclosed, Senator Dryden
of New Jersey. who is himself presi-
dent Of the Prudential Company Of
America, introduced a bill providing
for the appointment by the president,
with the advice and consent Of the
senate, of a Federal superintendent Of
life insurance, a national actuary, and
whatever special agents, clerks and
other employees may be necessary to
conduct properly the business under
the direction of the department Of
commerce and labor.
The proposed act declares that pol
icies of insurance are articles Of COM
merce and instrumentalities thereof"
the delivery Of contracts Of insurance
by any corporation to citizens or per-
sons located in other states being de-
clared to be interstate commerce, and
all companies doing an interstate busi-
ness of insurance, except religious,
charitable and purely fraternal socie-
ties, are placed under the supervision
of the superintendent to be appointed.
All insurance companies doing an in
terstate business are required to make
full reports annually Of their condition
and detailed statements Of their assets
and liabilities and their receipts and
disbursements, which are to be print
ed in book form, for the information
of the public at least once a year; and
they may be required to make special
reports at any time that the superin-
tendent of insurance may call for
them. All these reports must be
acknowledged and sworn to by the
president and secretary Of the compa-
ny. The superintendent also has the
power, whenever in his judgment Ii
shall appear necessary for the security
Of policy holders. to make an examina-
ton into the management and affairs
of any insurance company for the
purpose of determining whether 1t Is
solvent and trustworthy, and whenever
he discovers that a company Is unsafe
it shall be his duty to order such cor
poration to make good its financial
condition. If this shall be not done
within sixty days the certificate OF
authority to such company to transact
business shall be revoked, and notice
shall be given to the public that such
corporation Is unsafe.
The bill provides also that, within
sixty days after it becomes a law
every insurance company shall file
statement of its condition and the val
ue Of all Of its assets and outstanding
obligations, and deposit with the treas
erer Of the United States. as a guar
antee of its contracts, United States
bonds to the amount Of 100000
Whenever the superintendent Of insur-
ance has satisfied himself as to the SOL
vency Of a company, and the sound
ness Of its methods, he will furnish
certificate to that effect and license
shall then be granted to carry on the
proposed business Of insurance.
This proposes to place the insurance
companies of the country practically
upon the same basis as the national
banks. It is not a new proposition
For forty years efforts have been made
to secure for insurance the same Fed
eral recognition that has been extend
ed to banks In 1864 and again In 1855
when the national banking act was
passed, several companies addressed
congress, asking for relief from the
burdens Of oversupervision and over
Legislation by several Of the states
The movement had many influential
friends, and one of its leaders was
Elizur Wright, the famous insurance
commissioner Of the state Of Massa-
chusetts. The idea was indorsed by
nearly all Of the prominent companies
and the insurance newspapers, and the
movement was progressing favorably
until 1868, when a decree was render
ed by the supreme court Of the United
States, in the case Of Paul VS.. Virginia,
to the effect that insurance was not
commerce, like banking. transporta-
tion, telegraphing, ETC., and therefore
was not subject to Federal control In
speaking on this subject Mr.. Dryden
says:
THAT decision has given rise to end
less discussion, which 1t would be
neither profitable nor advisable to re-
vive at the present time. While the
decision of the supreme court seems
to dispose Of the question, it in fact
did not do so. 1t did not touch the real
point involved in a consideration OF
the regulation Of the insurance bust
mess as interstate commerce by the
Federal government. This point can
not be considered. however, until after
congress has passed a law regulating
such business in general conformity
with the interstate commerce act 1t
Is the opinion of qualified authorities
who have given most careful consider
alton to this aspect Of the subject, and
who have properly taken account OF
several recent important decisions of
the courts involving similar questions,
that, under the implied and resulting
powers of the constitution, the su-
preme court would not withhold the
verdict of constitutionality from an
act of congress declaring interstate in
surance to be interstate commerce.