Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1905-12-05
THE PRESIDENTS MESSAGE
continued! from Page "a Z

RIA
Continued from Page AZ
whose business mas exrenued 50 Tar
beyond the Jurisdiction OF the states
Z which created them as to preclude
strict enforcement OF supervision and
regulation by the parent states. In my
last annual message recommended
that the congress carefully consider
whether the power OF the bureau Of
corporate tons cannot constit utionally be
extended to cover Interstate transac-
n tons in insurance" Recent events
have emphasized the importance OF an
early and exhaustive consideration Of
y this question, to see whether it ID not
possible to furnish better safeguards
than the several states have been able
to- furnish against corruption Of the
fragrant kind which has been exposed.
II has been only too clearly shown
\ that certain of the men at the head OF
these large corporations take but smaIl
note OF the ethical distinction between
honesty and dishonesty They draw
the line only this side Of what may be
called law honesty, the kind Of honesty
4 necessary in order to avoid falling into
the clutches Of the law. OF course the
only complete remedy for this conli-
ton must be found In an aroused pub
y lie conscience,'a higher sense Of ethical
conduct in the community at large and
especially among business men and in
the great profession Of the law, and in
the growth Of a spirit which condemns
all dishonesty, whether in rich man or
n poor man, whether 1T takes the shape
Of bribery or Of blackmail. But much
can be done by legislat ton which is not
only drastic, but practical. There is
need of far stricter and more uni
form 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 national supervision of COM
merc1al interests which are clearly ma
tonal in character. Ny predecessors
have repeatedly recognized that the
foreign business Of these companies is
an important part Of our foreign COM
mercial relations. During the admins
trations Of Presidents Cleveland, Har-
ris0n and Mckinley the state depart
ment exercised its influence through
diplomatic channels to prevent unjust
discrimination by foreign countries
against American insurance compa-
MES. These negotiations illustrated the
propriety Of the congress recognizing
the national character Of insurance, for.
Ia the absence OF federal legislat ion the
state department could only give ex-
pressionsto the wishes Of the authori-
ties Of the several states, whose policy
was ineffective through want Of uni
formity. q S
S54 II State Supervision Inadequate.
s#s9I repeat my previous recommends
ton that the congress should also con-
slider whether the federal government
has any power or owes any duty with
respect to domestic transactions in In
surance Of an interstate character.
That state supervision has proved in
adequate Is generally conceded The
burden upon insurance companies, and,
!. therefore their policy holders, Of con-
dicting regulations Of many states is
unquestioned, while but little effective
check is imposed upon any able and un-}
scrupulous man who desires to exploit
the company In his own interest at the
expense of the policy holders and Of
the public. The inability of state to
regulate effectively insurance corpora
lions created under the laws Of other
states and transacting the larger part
OF their business elsewhere is also
clear. As remedy for this evil Of con-
dieting, ineffective and yet burdensome
regulations there has been for many
years widespread demand for federal
supervision. The congress has already.
recognized that interstate insurance
may be proper subject for federal
legislation, for In creating the bureau
Of corporations 1t authorized 1t to pub
fish and supply useful information con-
corning interstate corporations, Tin
eluding corporations engaged In insur
4 ance." It Is obvious that IL the compi-
lation Of statistics be the limit Of tho
federal power 1t is wholly ineffecttve
to regulate this form of commercial In
tercourse between the states, and as
the insurance business has outgrown
In magnitude the possibility OF ade-
quate state supervision the congress
should carefully consider whether fur
ther legislation can be had. What Is
said above applies with equal force to
fraternal and benevolent organizat lions
which contract for life insurance.
"a I,
REVISION OF REVENUES
More Need Of Stability Than Attempt to