Warren sheaf., 1905-12-07

v.
states should in this respect follow the
policy of other ma tions by providing
adequate national supervision of COM
mercial interests which are clearly ma
LlonaA in character. My predecessors
nave repeatedly recognized that the
foreign business of these companies is
an important part of our foreign COM
mercial relations. During the admin
1strations of Presidents Cleveland
harrison and Mckinley the state de-
Dartment exercised it's influence
through diplomatic channels to pre-
vent unjust discrimination by foreign
countries against American insurance
companies. These negotiations Illus
trated the propriety of the congress
recognizing the national character OF
insurance. for in the absence of fed
sral Legislation the state department
could only give expression to the
wishes OF the authorities OF the several
states. whose policy was ineffective
through want of uniformity
l repeat my previous recommended
ton that the congress should also con-
Sider whether the federal government
has any power or owes any duty with
respect to domestic transactions in in
furance of an interstate character.
That state supervision has proved in
adequate is generally conceded. The
burden upon insurance companies and
therefore their policy holders. of con-
nicting regulations of many states. is
nnquestioned. while but little effective
check is imposed upon any able and
nnscrupulous man who desires to ex-
plot the company in his own interest
at the expense of the policy holders
and of the public The inability of a
state to regulate effectively insurance
corpora tions created under the laws Of
other states and transacting the larger
part of their business elsewhere is
oil TlE AZ L.
of conflicting. Ineffective. and yet bur-
densome regulations there has been
for many years widespread demand
for federal supervision. The congress
mas already recognized that Interstate
insurance may be proper subject for
federal legislation, for in creating the
bureau of corporations it authorized
IT to publish and supply useful in
formation concerning interstate cor
porations, Including corporations en-
gagged in insurance" 1t is obvious
that If the compilation of statistics be
the limit of the federal power. it is
wholly ineffective to regulate this
form Of commercial intercourse be-
tween the states, and as the insurance
business has outgrown in magnitude
the possibility of adequate state su-
pervision. the congress should care
fully consider whether further legisla-
ton can be had. What is said above
applies with equal force to fraternal
and benevolent organizations which
contract for life insurance.
Under the subject of national revenues
the president makes plea for the enact'
ment of reciprocal arrangements between
this and other countries, but does not ask
for any tariff legislation at the present
time. In the same connection he asks for
economy in appropriations.
Business Methods in Departments.
On the subject of graft in the several
government departments that have been
under investigation he says:
At various times 1 have Instituted
Investigations into the organization
and conduct of the business of the ex-
ecutive departments. While none of
these inquiries have yet progressed
far enough to warrant final conclu
sions, they have already confirmed
and emphasized the general impress
sion that the organization of the de-
partments is often faulty in principle
and wasteful in results. while many
of their business methods are anti
guated and inefficient There is every
reason why our executive govern
mental machinery should be at least
as well planned. economical and
efficient as the best machinery of the
great business organizations which at
present is not the case. To make it
sentially executive in its nature; prob
ably no legislative body. no matter
how wise and able. could undertake 1t
with reasonable prospect OF success
! recommend that the congress con-
slider this subject with a view to pro-
vide by legisla ton for the transfer.
distribution. consolida ton and assign
ment of duties and executive orsaniZa
tions or parts Of organiza tions. and
for the changes in business methods.
within or between the several depart
ments. that will best promote the
economy. efficiency and high character
Of the government work.
Federal Elections.
On the subject of federal elections he rec
ommends that it be made unlawful for po-
litical parties TO receive campaign con-
tributions from the corporations. and alsc
that it be made unlawful for corporations
to give such contributors and in this con-
nection he says:
Contributions by corporations to any
purpose should be forbidden by law:
directors should not be permitted to
use stockholders money for such pur-
poses: and. moreover. a prohibition OF
this kind would be- as far as it went.
an effective method of stopping the
evils aimed at in corrupt practices
acts Not only should both the ma
tional and the several state lesisla-
lures forbid any officer OF a corpora
ton from using the money OF the cor
nora ton in or a bout any election. but
they should also forbid such use of
money in connection with any iegisla-
ton save by the employment OF coun-
sci in public manner for distinctly le-
gal services.
The Hague Conference.
The Harrle conference and the sub
iect Of arbitrat ton generally is treated
of at considera BILE length and in this
connection an explanation is given OF
this governments connection with the
coming conference in the following
words:
The first conference of nations held at
The Hague in 1899 being unable to dis
nose of all the business before it. recon-
,nended the considera ton and settlement
of :. number of important questions by
another conference to be called subSe-
uuen ly and at an early date. The e
questions We're the following: a The
rights and duties of reutrals; 90 the
Limitation of the armed forces land
and sea and OF military budgets; ~ the
use OF new types and caiibers of military
and naval guns: a. the inviolability OF
private property at sea in times of war;
is, the bombardment of ports. cities and
villages by naval forces. In October
1904 at the instance of the Interparlia-