Omaha daily bee., 1905-10-08
REGULATION OF INSURANCE
Norris Brown Advocates Congressional
Rate LsgiIlatisL
NAY NOT Be ABLE TO REVOKE LICENSE
Cupid f. Put Under the Ban at
wesIeyan University and stu
dent suspended for
spoOninE.
CFrom a Stan Correspondent

CFrom a Stan Correspondent)
LINCOLN, oct. 7.-Cspecial. )-Attorney
General Norris Brown today said that he
believed the best method Of coping with
the evils which have been exposed in the
New York investigation is for congress to
enact a maximum rate law, based on
reasonable calculations as to the average
expectancy and rates Of interest. He says
that the insurance corporations are quasi
public in their nature and they are sub
iect to control to prevent the exaction Of
undue rates, instancing the proposal to re-
luire the use of a uniform or standard
policy as a precedent for state interference
with the freedom Of contract between the
insured and the insurer. He does not be
ueve in the idea OF state insurance sug-
yested by Commissioner Host OF Wisconsin
and Governor Folk of Missouri.
Brown said that he did not see how his
department could be obliged 10 pass on the
insurance situation at the present time,
although he is fully aware Of the evils
which have been uncovered and predicts
hat without governmental control these
corporations will control the finances of the
,ntlre country within a few years.
He favors the adoption OF a statute which
will fix the rates at such figures that the
treat SURPRISES will not be built up to tempt
nanipulators.
what is needed" said the attorney gem
raj. is a. statute fixing the maximum
ates which may be demanded for various
lasses OF risks. II given supervision OF
insurance. congress can enact it, There
viii be no dificulty in determining the
ates The actuaries having the tables
4 expectancy and the rates Of interest can
tern1ine what constitutes fair rate. The
- Mccall shows that
q enormous SURPRISES have been built Up
Dc ,ause the rate of mortality Is less than
.het which had been assumed to be prob
- in fixing the rates.
The public is paying entirely too much
or insurance and the companies are quasi
diblic in their nature and are subject TO
ontrol. believe. for the purpose of pre-
enting the imposition Of excessive rates.
II is feasible, as Is often suggested. to
orce the adoption by legislation Of stan
lard policy. It appears to me that the
,cheme to FIX maximum rates is practi-
able"
May Not he Able to Revoke.
The recent decision of the supreme court
n the case OF the Bankers Union of the
World against Searle, has raised some
oubt as to the power OF the auditor TO
evoke tire license OF an insurance COM
bany. That would interfere with any &C
ion in the case of the three big New York
companies which are being investigated,
when the work of the comittee is con-
.uded. but It is pointed out that he can
efuse to issue a new license at the end
n the year, II dissatisfied with the meth.
DIS employed and with the officials OF those
corporations. That would mean a delay
not more than two months. II he choose,
at b-o Iranaaa With
he FIRST OF the year and it Is discretionary
nth the auditor whether he will issue
lew ones until the companies comply with
my conditions which he may prescribe In
die interests OF the policy holders
The decision In the Bankers union case
caves tire right OF revocation in the case
n fraternal companies rather doubtful
md IL is believed that II may extend Il
I'D line companies. because OF the absenc,
II any express statute authorizing sucl
action The court seemingly. provides
sor such a situation in its holding that tn,
Iuditor had very broad discretion in pass
ng on an application for license
j. j. Hill In Lincoln.
J. j. Hill stopped on in Lincoln a few
minutes today while his special train tool
a rest on its long Journey from Portian,
to Kansas City. where the magnate 1
scheduled TO denver announcer speech. n
said that the Burlington does not propNs
to build a line to the south, leaving tn
impression that any extension in that di
rection will be through purchase.
He said that Lincoln will be greatly ben
ehted through the construction OF the neN
euton, which. will give 1t a new outlet (
the great lakes and add that much to tn
railway facilities OF the city.
The railway baron expressed his satisfac
ton with the fertility and productivenes
OF the farming territory along the r1ght-oi
way OF the Burlington in eastern NebraskI
He did not visit the local Offices, but cor
suited briefly with the officials who me
him on the platform when he left his pr
vate car. He appeared to experience pleas
TIRE I'm talking OF his Portland trip, an
particularly of his addresses before vsriou
commercial bodies.
No Room for Cupid at wesleyan.
The authorities of Wesleyan universit
have given notice that spoOning on tn