New-York tribune., 1905-02-27
INSURANCE CONTROL BILL.
PREPARED BI' DRYDEN.
II U-M Be Introduced at Once to
Proroke Discussion.
From THE TRIBUNE BUREAU

,,-esi5ert's recommendation 10 Congress for the
,,l. zion Of insurance by the federal govern
--- There Is OF course. no hope for or inten-
- IF r-essinE the measure TO final action in
-. FEW rer,aining days OF this session. but its
.-.-,5,,,-for ct this time is none the less i'm
Lent Il shows that those who have given
=. s,b,ect profound thought since the Presi-
ss-,,s b-ief hut positive declaration for such
,.-tsfsr5ou have been able to form proposed laws
.tt-b define insurance as interstate commerce
- s,,cb 2 wsv as TO remove, in the opinion OF
,, eminent lawyers any constitutional OBJ
-..ior 70 the proposition and which at the same
-, avid any infringement OF the rights of
=. s+a,ss Further. il indicates the part of
.Aoss who have Fl heart the welfare Of twenty
rfo7 policyho!ders in level premium life
.-,-ence companies alone. as we'll as the well
80 n legitimate insurance enterprises of all
f-f,ss 2 purpose 10 continue the agitation of
h,s important subject in the recess. in the hope
~ z successful issue in the next Congress.
The hill distinctly sets forth that policies of
,,s,-anoe are articles Of commerce and in
.,-Inl4nta lities thereof and that the delivery
nj contracts Of insurance by 4 corporation of
me STATE into another should be- deemed trans
sc-ions in interstate or foreign commerce. as
,be case may be and therefore subject to the
corrrol Of the national government. Suitable
rrovision Is made for granting licenses by the
federal government to corporations doing inter
state or foreign business.
II may not be 3 perfect measure in all its
details" senate Dryden remarked tonight.
but lis purposes are in the right direction. and
having met the general approval of many emf
merit constitutional lawyers as well as the ad-
77irlstralve authorities, I shall take pleasure
in presenting #. believing. as do. that any de-
-ects car easily be remedied and that "A law
The test Of the Supreme Court. but will prove Of
everlasting benefit 10 the community AT large.
Every measure Of general importance Is nee
esssrly an aggregation Of compromises before
gong on the statute books. and It Will there
fore be no disappointment to me II. after mature
deibe-ati7n. some changes should be deemed
evnedent Indeed my whole purpose in intro
ducng The hiI this time is to invite criticism
n its provisions and to obtain an interchange Of
views. 70 Tie end that when Congress meets
again the committees having the subject in
cnsrg4 may have the benefit of the best thought
That can possibly he obtained. The questions in
voyed are TOO grave and far reaching 10 permit
of any haphazard methods in framing legisla-
fior- The committee should have all the light
possible. Although action is urgently demanded.
7 should wish to see it only after the most
fUre consideration.
Briefly I may mention some Of the most
direct benefits TO he derived from the passage
or the bin in question
'Ffrst-Increa sed security Of insurance to
2o@10000 policyhoIders.
~Secoud-Decrease in cost Of Insurance.
'Third-Increased returns TO policyhoIders.
.'Fourth-Decrease in the burden of taxation.
-Dirlinution Of a vast amount OF need
less clerical labor to meet the requirements Of
some fifty different States and Territories and
consequent decrease in expense rate
-sixth-ThA stamping out Of fraudulent insur-
a7ee enterprises.
With all these advantages-and all in the in
7erest of the public welfare-surely business Of
sr,ch vast proportions business affecting 50
ny millions Of homes. u business aggregating
N2eJlGbUOeO in funds held by level life pre-
MUM life insurance companies. with additions
~ over S5Oo0Oo0 annually, not TO mention the
lsrge sums invested in fire insurance and kin
dred matters. Is entitled 70 and indeed demands
federal attention and safeguarding the fullest
extent
There is certainly no more important factor
entering into our commerce, trade and industry
rhsu this of Insurance. and whatever may be
said in favor Of the national regulation of banks
and railways applies with equal, if. not greater,
force 10 this universal institution. reaching
il does all classes and affecting more or less
aIl commercial interests.
Insurance today, TO repeat previous OBJ
serE alton. is to be regarded an essential eIe-
meHt Of human progress and d method and
means for the uplifting Of the masses TO higher
leyeI Of economic security. II has become ma
tioral in character and few companies now con-
me rheir operations 10 single State: in fact il
operations were so limited they might prove
disastrous and make the conduct Of the business
Impossible.
There is no other form Of enterprise deserving
s. much and receiving so little where the bur-
Gems are 50 great Not only do the companies
suffer from oversupervisIon and overlegislation
resUirinE in body of laws often making that
duty il one State which might be a crime in
-he subject Of excessive taxation, which, in ad-
oitiou 10 being most harassing to the enterprise
falls directly on the savings Of the policyhold-
e-s. Life Insurance companies alone have paid
n the way of taxes over S1o0o00.OO0 in the last
iorty Years, and are now paying annually in
taxes. fees etc.. about S90o0oo0. With proper
isoe-ai regulation q good portion OF these vast
l..a -.s AfoAi.a have been directly enjoyed by the
IDlcFhc- 1ers through tbs medium Of lower
.ates q premiums and increased dividends
As Illustrative OF this unjust tax burden |
10y clte as particularly pertinent the case Of
ne Wisconsin insurance department. which
'sst year collected over S5D0ot0 from insurance
.9npanies q he less than $4,000 was required
~ the administration Of the department North
'ofp'Da collected over S2sDOoO from the same
e'lrce- while less than 5000 required for
.1e maintenance OF the department. These IN
'Lenees are sufficient 10 show that in q number
/" csses insurance departments exceed their
proper functions and become mere agencies for
ne collecting of tsxes from certain corpora
u9as of other States. Insurance companies have
never objected 10 State supervision by the State
ron which they derive the charter giving them
'or7oraie existence but What they do object 10
'Ae protest against is the unwarranted ana