The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-10-22
WILL NOT GO DOWN.

The Supreme Court of the United
States has held that an insurance
policy is not Interstate commerce
and therefore cannot be controlled by
the Federal Government. Senator
Dryden wishes to have Congress re-
peal that decision of the Supreme
Court and deprive the State Govern
ment of all control of insurance
companies and all right to tax
panies think if they can get
them. Some of the great COM
Government they can escape taxation
and the publicity attendant upon State
Investigation. But the attempt will
fail.
The argument against this plan of
GENERALIZATION is effectually put by
Mr. j. d. Browne, President of the
Connecticut Fire Insurance Conn
pany Asked by Senator Dryden for
his opinian, Mr. Brown wrote as fol-
lows:
Replying to your letter of Septem-
Der IL, concerning Federal superVl-
sion of insurance, L beg to say That
am not in favor of the proposed legls-
lation. | am opposed to it in prIn-
ciple and practice. l do not belleVe
anything would be gained i'll the i'll
terest of the companies, the policy
holders or the public by federal con-
troll
"r do not believe that national leg
islation can deprive the states of the
right to supervise, control and tax IN
surance companies and ! believe that
tIn n Mt n
would not, and ought not, to be suS-
tanned by the supreme court of the
u, United States. l fail to see how sec1-
rity to policyholders will be increased
or the expense ratio or cost OF in
surance decreased, or taxation re-
duced. The clerical labor in making
annual statements to the various state
departments is an insignificant item.
The blanks are all substantially alike.
and. so far as we are concerned, an
swers and interrogatories are in the
main printed. No honest and respon-
sible company need have any serious
difficulty with an honest state official
or fail to secure their rights, If neceS-
sary, by resort to the courts.
1.-THE requirements of the various
state departments are rigid and are
generally enforced lhe tendency of
legislation and the enforcement of law
in relation to insurance companies for
the last 80 years has pretty much
eliminated the weaker institutions. All
that is needed is competent and hon
est public officials; on the whole | do
not think we have cause to COM
plain in that respect. Certainly [
would not look to the federal service
for Improvement
Paramount to the foregoing. my
sense of obligation as a citizen would
, impel me to oppose this proposition
as an invasion of State rights and
another step in the direction of GEN.
traIization and imperialism"
That is well said. The proposition
of the big insurance companies will
not go down. Once in a hundred years
the Federal Government might inves-
tigate. but it would be difficult TO
obtain such publicity as has been OBJ
tanned by the Investigation now being
conducted by the New York State adj
ministration. Public opinion can make
itself felt if a single state can pro-
tect poicyholders better than if it
must make itself felt all over the Re-
public. There will always be one
State in the Union. now that the at
tention of the public has been sharply
called to the "unintentional Irregular
tiles" Gas director calls them) or the
stealing and corruption Gas plain
spoken men call IT'D that will make
the proper Investigations whenever IT
is necessary and will give publicity to
, the testimony as is being done In the
Investigations now being made by the
New York Legislative Committee. Oh
course there are State officials who
can be bribed or silenced just as there
are Federal officials, but it is more
difficult to control forty-tive State
officials than one Federal official.
The proposition for the State to
abdicate will not go down.