The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-03
How to Regulate Insurance.

S~HE insurance discussion is of never-endipg
IL interest No subject dealing with figures has
so absorbed the attention of the American public
as this has done. One Of the best recent contr-
buttons to the literature Of the insurance problem
is the address delivered before the Commercial club
of Boston by Louis D. Brandeis counsel for the
protective committee Of policyholders in the
Equitable
Mr. Brandeis has brought together the figures
of the insurance business in such way to
graphically illustrate it's vastness He shows that
ninety old-ine companies in the United States have
in force twenty-one million policies on the lives
of about ten million people. These are mainly
the heads of families, and he calculates that forty
million people, or half Of the population are in
terested in them. The actual amount Of insurance
represented by these policies is $l20OO,OOOO 600,
more than the total value Of all the steam roads
in America. On JAN l, 1905, these companies held
assets Of 3lS6,639, three times the capital of
all the national banks in the country The total
income Of these companies was $6l2,O0OOOO, OF
more than the receipts Of the federal government.
Of all the assets Of all the companies, than
one-half held by three, and it happens that
sthese three are the spit Of investigation, and
every time they are turned place is
exposed.
The general subject of the abuses revealed in
the pending investigation is carefully reviewed by
Mr.. Brandeis, who seeks to answer the question
what shall be done. To two general conclusions he
attaches Importance that the Dryden bill to put
insurance under federal supervision is a snare, the
other that is is not desirable that the state under
take Insurance. His objection to the Dryden bill
IS that it would substitute for fifty commissioners
many of whom alert, honest and faithful, the
dictum of one excellent person in Washington. The
institution which got past him would be safe to
prey upon the public tho at present it may pass one
compalsant commissioner only to foul of an
other with better knowledge of insurance and
frmer purpose to give the public square deal.
State supervision with greater uniformity of
law is more to be depended upon than federal law
which would sweep away all present safeguards and
substitute others perhaps not adequate in detail
The commissioner Of Minnesota, himself a LAWYER
OF ability is at the head of movement for the
classification of insurance laws and the adoption of
a uniform code in the different states This would
come nearer protecting the public than the abandon
men OF the progress already made by the states and
the dependence upon general code passed by con-
gress and administered by one man. Such uni
q formity Of law would have to provide against two
or three things which the Armstrong Investigation
has shown at the bottom of all the scandal. Tt
GAMBLE the looseness with regard to invest
ments, the extravaganza Of management and in GEN
eral the practice which looks upon insurance as anv
else than system of saving based mathematical]v
upon the highest rate Of interest consistent with
perfect SAFETY There IS no mystery about insurance
when this character is conceded '.>~>.- =