Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1905-12-27
FEDERAL CONTROL
FOR INSURANCE IS ONLY
AN Idle DREAM SAYS he
Constitutions Of The United States Will
Not Permit II. Pennsylvania
Insurance Man Talks
OF Remedies

Des Moines, Ia, Dec. 1.-"Federal
supervision Of the life insurance bsi.
ness Of the United States without an
amendment to the constitution, is In
my opinion aud the opinion OF well In.
formed insurance men. an impossible.
ity."
Such was the statement of L. X. Pass
more, second vice president Of the Penn
Mutual Life Insurance company OF
Philadelphia. who was in the city yes
terday on business.
I'VE are not disposed to oppose Fed
eral supervision" continued MIR. Pass.
more, land in my opinion insurance
men favor 1t. but In the face Of the
decisions Of the United States Supreme
Court | cannot see how II is possible
without an amendment to the consti.
tuition. AS long ago as 1868 in the case
of Paul vs., Virginia the Supreme Court
held that insurance is not commerce
and federal authorities have no right
to Interfere or regulate conditions
under which 1t is written. Twice since
the same court has followed the rule
laid down In the Paul case.
Il am disposed to believe that bet.
ter remedy and one that will be guar
antee to the insured in all the States
is to follow out the plan recently sug.
eested by Insurance Commissioner
Host of Wisconsin. His idea is that
the insurance departments of the sew.
Gral States form an association and that
this association from time to time del.
cgate two or three of its number TO
investigate and examine the companies.
Such an examination would be partic.
ipated in by three persons from widc
ly different States, thus giving assur'
ance Of thorough examination, and
Its report would serve all the States.
II would remove the charge that Fed.
eral department would be dominated
by the insurance companies.
81 am satisfied-and | believe all
other insurance men are-that the in
surance Investigations will result in
great good to the insured, not that there
will be a cheapening Of insurance be.
cause Of the cutting of of extrayagant
expenditures, but because the entire
commercial atmosphere is to be purgei
and many corporations will be forced
to mend their ways.
mo. the stopping of graft will not
have an immediate effect on the price
OF insurance. The fact Is that the
speculations and populations have been
confined wholly to the tontine funds
the payments OF which are deferred ia
the termination of the policy period
which Is generally twenty years, and
| which are not guaranteed. The re.
| serves have not been touched. IL is
my judgment that the only benefit that
can come to the insured is in economy
In the procuring Of business and reduc.
| ton Of general expenses, which will
decrease the annual premiums.
Our company, though II is not gen,
orally known, has been before the New
York Legislative investigating commit.
tee. Our secretary and our treasure,
were subjected to an examination and
upon Its conclusion the affairs of our
company were commended. The trou.
BILE so far has been confined to the three
big New oYrk companies. thought ex.
pect to see 1t reach some other com.
panies, principally In New York, be
fore the investigation is concluded.
mo, dc not think the investi cation
| has resulted in lanses -