The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-12-05
LIFE INSURANCE.
National Supervision of the Business
Should Be Provided For.

The great insurance companies af-
ford striking examples of corporations
whose business has extended so far be-
yond the jurisdiction of the states
which created them as to preclude
strict enforcement Of supervision and
regulation by the parent states. In
my last annual message / recommend
ed that the congress carefully con-
slider whether the power Of the bureau
of corporations can not constitution
ally be extended to cover interstate
transactions in insurance" Recent
events have emphasized the import
ance of an early and exhaustive con-
sideration of this question, to see
whether it is not possible to furnish
better safeguards than the several
states have been able to furnish
which has been exposed. 1t has been
only too cleverly shown that certain Of
the men at the head of the large cor
porations take but small note of the
ethical distinction between honesty and
dishonesty; they draw the line only
this side of what may be called law
dishonesty, the kind of honesty neces-
Sary in order to avoid falling into the
clutches OF the law. OF course the
only complete remedy for this condf-
lie conscience, a higher sense of ethi-
cal conduct in the community at large,
and especially among business men,
and IN the great profession of the law
condemns all dishonesty, whether in
rich man or in poor man, whether it
takes the shape of bribery or of black
mail But such can be done by legis-
Iation which is not only drastic but
practical. There is need of a far
stricter and more uniform regulation
of the vast insurance interests of this
country. The United States should in
this respect follow the policy of other
nations by providing adequate ma
tional supervision of commercial inter
ests which are clearly national in
character. My predecessors have re-
peatedly recognized that the foreign
business of these companies IS an i'm
portant part of our foreign CONNER
cial relations. During the adminiStra-
tons of Presidents Cleveland, Harri-
son, and Mckinley, the state depart
ment exercised its influence, through
diplomatic channels. to prevent unjust
discrimination by foreign countries
against American insurance companies.
| These negotiations illustrated the pro-
/ Driety of the congress recognizing the
national character of insurance, for in
the absence of federal legislation the
state department could only give ex-
preston to the wishes OF the author1-
/ ties of the several states, whose policy
was ineffective through want of uni
/ formity.
[ repeat my previous recommends
/ ton that the congress should also con-
/ slider whether the federal government
] 4AeAS ally power OF OWES any 0NtJ Win
respect to domestic transactions in in
surance of an interstate character.
That state supervision has proved in
4 adequate is generally conceded The
| burden upon insurance companies, and
! therefore their policy holders, of con-
/ fiicting regulations of many states, is
unquestioned while but little enectve
/ check is imposed upon any able and
INSCRIPTIONS 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
| corporations created under the laws
J of other states and transacting the
| larger part of their business elsewhere
| is also clear. As q remedy for this
evil of conflicting. ineneeUFe, ana yet
/ burdensone regulations there has been
/ for many years a. widespread demand
for federal supervision. me congress
| has already recognized that intersta te
| insurance may be a proper SUBJECT Tor
! federal legislation. for IN creating the
bureau of corporations II autnoLlzeo II
| to publish and supply useIui iiiofIna-
ton concerning interstate corpor-
1ations sz5nclrdi54g corporations en-
| gagged in insurance. II IS OBVIOUS
that If the compilation of statistics be
! the limit Of the federal power, II Is
/ wholly ineffective to regulate TINS FORM
/ of commercial intercourse between the
states and as the Insurance business
has outgrown in magnltuoe the pos
sfbility Of inadeduate state supervision.
the CONGRESS should carefully consider
whether further legislation can De had.
What e sid above applies with equal
force TO frsternal and benevolent ore