The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-17
FOR FEDERAL INSURANCE Law
SENATOR DRYDEN AND y. NJ. BECK
GET ROOSEVELT'S ASSENT.

President Of tho Prudential Life VIII Re-
Introduce in the Be- nate His Bill Of
Last session, With Assurances Of
the Administration's Full support.
OYSTER BAY, Aug. le.-senator John F.
Dryden OF New Jersey and ]. M. Beck,
formerly Assistant United States Attorney
General and now counsel for the Mutual
Life, came here to-day to confer with the
President on Federal control OF the insur-
ance business.
After the conference all three were hope
ful that Federal control would soon and
surely come
Senator Dryden had bill before the last
Congress for the establishment Of Federal
control Of insurance. The bill was In COM
mit,ee when Congress adjourned.
After his conference with the President
the Senator decided that he will reintro-
duce the bill at the next session in some
what altered form, though essentially the
same, and he believes the bill will have the
Administrators support. The constitu-
tional obstacles to such law are not ex-
pected to be insurmountable.
Senator Dryden arrived here on the 1920
train, Mr.. Beck missed that train, 30 he
hired special, 30 important was this con-
ference deemed. Both lunched at Saga
more Hill. Upon their return to the station
for the APO train Senator Dryden said:
"We have had q satisfactory conference. I"
The Senator is president Of the Prudential
Life Insurance Company and he under
stands the insurance business. The Presi-
dent went over the bill with the Senator
and gave his full assent to its provisions.
In his last message to Congress the Presi-
dent said:
-The business OF insurance vitality affects
the great mass OF the people Of the United
States and Is national and not local In it's
application. 1t involves multitude of
transactions among the people Of different
States and between American companies
and foreign Governments.
Il urge that the Congress carefully con-
slider whether the power Of the bureau OF
corporations cannot constitutionally be
extended to cover interstate transactions
In insurance.
The bill Senator Dryden will father
carries out fully the Presidents idea.
Nearly all the presidents Of insurance
companies all over the country said Sena-
tor Dryden, 1desire national supervision.
The laws In the various States differ, and
that gives fifty different departments
supervision. Every company would nat
urally prefer Just one set Of regulations.
for that would make 1t 80 much easier to
shape policy.
4The measure I introduced and shall
reintroduce in the Senate provides for the
supervision Of insurance by tho bureau
0! corporations Of the DEPARTMENT OF Com
meroe and Labor. l wanted to sound
Ia 30. Hxyv mn
OF the bill.
1T Is not to be denied that there are serious
legal obstacles under the Constitution as
Interpreted by many able lawyers, and 1t
remains to be seen whether such statute
as we propose oan be made effective. There
are those who hold that insurance Is not
interstate commerce and Is therefore not
covered by the article giving Congress
power to regulate such commerce. But
all Supreme Court decisions have referred
to State laws since there Is no Federal
statute"
The case Of Paul vs.. Virginia, decided in
the Supreme Court in 1853, has been cited
as a case In point. It was a State case.
The e. rrcne Court has yet to give decision
Dryden and Mr.. Beck, both we'll versed In
ulsuTdHCo laW, UIully O0ucN0 VIC oupiOAAO
Court would support such Federal statute.
III / thought said Mr.. Beck, that
the constitutional objections to Federal
bother to frame it, firmly believe that II
Congress enacts the law that Ia wanted such
law would stand the scrutiny OF the Su-
bring the matter before the Supreme Court
Is by means OF such law.
we in this country are furthest behind
tn the matter Of national control Of the
insurance business" went on Mr.. Beck.
'In Australia they have recently obtained
Federal control Of insurance. In Ger
many the control Of insurance was taken
away from the various kingdoms and
prinoipalities and centralized under the
imperial Government. Here fifty different
departments control insurance. and In
this country 500, OO00 900 worth Of insur-
ance business is done annually
Mr.. Peck added that provision could be
made to put insurance direction under
the Treasury Department or under any
would put 1t under the bureau Of cor
pora.ions, which already deals more or less
with insurance so far as 1t Is concerned
with interstate commerce.
The chief objection to Federal control
OF insurance is expected to come from the
various States. which will claim a right to
control for themselves all insurance bust
ness transacted within their boundaries
But it is pointed out that Federal control
would have to do only with the companies
doing an interstate business. Smaller
companies confined to single States would
still be controlled by the insurance laws
OF those States.
Mr.. Beck returned from the Hill In time
to maize the 4:2O train, 80 he did not have
to tahe the special train back Both
with the hearty support the President
gave them In their endeavors to improve
Insurance conditions.