The Providence news. (Providence [R.I.]) 1891-1906, 1905-08-17
FEDERAL CONTROL
OF INSURANCE
President Roosevelt Interested
In Plans Discussed.
ITS LEGALITY TO Be TESTED.
Senator Dryden Of N. J., and James M.
Beck Ia Conference al Sycamore
Hill Yesterday.

a conference at Sycamore Hill yesterday
afternoon. so important that one OF the
participants. James NJ. Beck, formerly an
Assistant Attorney General OF the United
States. and now special counsel of the
~ u,ual Life Insurance company Of New
York, missing the regular train from
Long Island City 10 oyster Bay charter
ed n special train from the Long Island
Railroad company. order 20 meet his en-
gagement with the President.
The parties 10 the conference were the
President, Senator Dryden Of New Jer-
sey. who is President OF the Prudential
Insurance company, and Mr.. Beck
Senator Dryden arrived here AT 1920 p.
m. lie expected 10 be accompanied "a
oyster Bay by Mr.. Beck, but the latter
missed the ferry at East Thirty-fourth
street New York by two minutes.
Proceeding 20 Long Island City on the
next boat he made immediate arrange
ments with the Long leland Railroad offi-
cials for a special train to bring him 10
oyster Bay.
PRESIDENT MUCH INTERESTED.
In few moments a locomotive and pas
senger coach were I'm readiness and he
was whrled 10 oyster Bay. arriving here
Is minutes after the regular train. He
sprang into a carriage and was conveyed
10 Sagamore Hlll I'm time 10 Join the
Presidents luncheon party. which copsist-
ed Of Ambassador Hengelmuller OF Aus
ia-Hungary Senator Dryden. Charles
II. Keep. assistant secretary OF the treas
ury. and Robert Bridges OF New York. an
author and magazine yriter. who is a
friend OF the President.
The conference followed the luncheon.
The President for consideration time
N agnerial1xs ofr he Ia
during the last few months regarding the
operations OF the Equitable Life Assur-
ance Society, has manifested q deep in
terest in the problem Of national control
OF the Insurance business.
In his message To Congress last Decem-
Der President Roosevelt said:
The business OF insurance vitallv af-
fects the great mass OF the people of
the United States. and is national not
local, In IT'S application. II involves
multitude OF transactions among the peo-
ole Of the different states and between
American companies and foreign govern
ments l urge that the congress care
fully consider whether the power OF the
bureau OF corporations cannot constitu-
tionally be extended TO cover inter state
transactions in insurance"
INVESTIGATED BY GARFIELD.
Several months ago. at the presidents
request. the subject Of national super
visiory control OF insurance was investI-
gated by Commissioners Garfield OF the
bureau OF corporations, and the conclu-
sion was reached that under existing
federal laws the insurance business could
not be supervised by the bureau of cor
porations. because. In the light OF the
constitution. and I'm view OF certain de-
cisions Of the federal courts. it was not
regarded as interstate commerce.
At the last session OF congress. Senator
Dryden. who Is recognized as an ar-
thority on life Insurance. introduced bill
I'm the senate providing in brief for super
visory control OF interstate insurance busi-
ness by the bureau OF corporations.
IL was along the lines of this measure
that the conference yesterday proceeded
The president is known To be IN favor Of
federal control Of the insurance business
II II can be brought about constitutionally.
Whether II can be is the point yet to be
determined. That the supreme court OF
the United States eventually will be called
upon 10 pass on the question there Is
little doubt.
COMPANIES IN FAVOR.
AZ the conclusion Of the conference
Senator Dryden talked frankly
1--WE discussed the whole subject OF
federal supervision Of tho insurance husl-
ness" said he, "and our talk was very
satisfactory. Personally. I am heartily
in favor OF such supervision by the ma
tional government. because II would in
sure 70 companies doing business I'm sew
eral or I'm many states a well-defned and
well-considered set OF regulations and a
definite policy.
II introduced In the senate at the last
session n measure providing for super
visory control OF interstate insurance by
the bureau OF corporations / did so be-
cause I wanted TO call out suggestions
and TO sound public opinion on the sub
tcct
IL had the bill referred to the Judiciary
in order that it might he
passed upon in It's incipiency by the ahlest
lawyers In the senate. / expect 20 re-
Introduce the measure in the next CON
gress perhaps I'm slightly different form
The principle OF tho new measure. how
ever, will be the same as that OF the first
bill
MY opinion Is that very large ma
iorlty OF insurance companies will favor
ma tlonal supervision Under existing ar
we are Obliged 10 conform to
different laws and regulations In prac-
tically every state.
"The laws and regulations are being
changed continually and different insur-
nncc departments place different interpre-
tations on the same laws What insur-
incc companies want is a uniform. har-
monious and continuing policy. and that.
we believe. 81 TO be had only through
supervision"
SOME OBSTACLES
"Are there not legal or constitutional
Obstacles 90 national control OF insur-
iuco?" was asked.
ooh. yes reptile a Senator Dryden
There are lawyers who maintain that
Il ls absolutely unconstitutional and they
oint 90 decisions ~ our courts I'm sup
port ~ their contention. The case gen
orally cited is that OF Paul VS. Virginia.
decided by the United States supreme
court In 1865. | think tho decision being
handed down by Justice Field. In that
case 80 was held that insurance was not
Interstate commerce In some suhge-
quenf DECISIONS. however. notably I'm the
lottery cases ground was given for the
belief that II the question of fedora
supervision ~ insurance should be brought
squarely before the supreme court SIS
decision would be in support ~ it. The
decisions IN the lottery cases seem 70