The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1905-12-08

less Of II there be within the more there mus
be without. 1t lG ordained in the eternal con
stitution OF things that men of ntemperat,
minds cannot be free. Their passions forg'
their letters"
Insurance.
The great insurance companies afford strik
inc examples of corporations whose business
mas extended so Tar beyond the jursd elton Of
the states which created them as to pre-
elude strict enforcement of supervision ant
regulation by the parent States. In my las
annual message | recommended that thu
Congress carefully consider whether the pow.
er of the Bureau of Corporations cannot con.
additionally be extended to cover interstate
transactions in insurance" Recent events
have emphasized the Importance of an early
and exhaustive consideration OF this ques-
ton. to see whether 1t is not possible to fur
nish better safeguards than the several
states have been able to furnish against cor
ruption 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 small note of the
honesty; they draw the line only this side
Of what may be called law honesty, the kind
OF honesty necessary in order to avoid fall
Ing into the clutches Of the law. OF course
the only complete remedy for this condition
must be found in an aroused public con-
science, a higher sense of ethical conduct in
the community at large, and especially
among business men and in the great pro-
fession OF the law. and in the growth OF a
spirit which condemns all dishonesty, whether
In rich man or in poor man, whether 1t takes
the shape OF brlpery or Of blackmail. But
much can be done by legislation which is
not only drastic but practical There is need
OF far strcter and more uniform regula-
ton 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
commercial interests which are clearly ma
tiona in character. Ny predecessors have re-
peatedly recognized that the foreign business
Of these companies is an important part of
our foreign commercial relations During
the administrations Of Presidents Cleveland.
Harrison, and Mckinley the State depart
ment exercised its influence, through diplo-
matte channels, to prevent unjust discrimi-
nation by foreign countries against American
insurance companies. These negotiations IL
Illustrated the propriety of the Congress rec
ance. for in the absence of federal legislation
the State department could only give ex-
preston to the wishes of the authorities of
the several states whose policy was inei-
fective through want of uniformity.
l repeat my previous recommendation that
the Congress should also consider whether
the federal government has any power or
owes any duty with respect to domestic
transactions in insurance of an interstate
character That state supervision has proved
inadequate is generally conceded. The burden
upon insurance companies. and therefore
their policy holders. of conflicting regu-
lations of many states, is unquestioned while
but little effective check is imposed upon any
able and INSCRIPTIONS 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 corporations created un-
der the laws Of other states and transactng
the larger part of their business elsewhere
Is also clear. As remedy for this evil of
conflicting, ineffective, and yet burdensome
regulations there has been for many years
a widespread demand for federal supervision.
Wt1n M hoc n1ra o1xr unI hat
interstate insurance may be proper subject
for federal legislation, for in creating the
Bureau Of Corporations it authorized it to
publish and supply useful information con
corning interstate corporations. Including
corporations engaged in insurance" 1t is
obvious that II the compilation Of statistics
be the limit of the federal power, it Is wholly |
ineffective to regulate this form Of CONNER |
the insurance business has outgrown in mag |
nitude the possibility Of adequate state su-
pervision, the Congress should carefully
slider whether further legislation can be had |
What is said above applies with equal force |
to fraternal and benevolent organizations
which contract for life insurance.
The Revenues.
There Is more need of stability than Of
the attempt to attain an ideal perfection in
the methods of raising revenue; and the
shock and strain to the business world GER
tain to attend any serious change in these
methods render such change inadvisable I'M
less for grave reason. 1t Is not possible to
lay down any general rule by which to de-
termne the moment when the reasons for
will outweigh the reasons against such
cnange. Much must depend not merely on
the needs, but on the desires, of the people
as whole; for needs and desires are not nee
essarily Identical. OF course no change can
be made on lines beneficial to, or desired
by, one section of one state only. There must
be something like general agreement among
the citizens of the several states, as repre-
scented In the Congress, that the change Is
needed and desired in the interest of the
people as whole; and there should then be
a sincere, intelligent, and dsinterested effort
TO make 1t in such shape as will combine, SO
Tar as possible, the maximum Of good to the
people at large with the minimum Of neces-
sary disregard for the special interests of
the revenue must on the average, taking
q series Of years together, equal the expendi-
lures or else the revenues must be increased
Last year there was deficit. Unless our ex-
penditures can be kept within the revenues
then our revenue laws must be readjusted.
1t is as yet too early to attempt to outline
what shape such readjustment should take,
for it is as yet too early to say whether
there will be need for it. 1t should be con-
sidered whether 1t is not desirable that the
tariff laws should provide for applying as
against or In favor Of any other nation maxi
mum and minimum tariff rates established by
the Congress, so as to secure a certain reci
procity Of treatment between other nations
and ourselves Having in view even larger
CONSIDERATIONS OF p0l1Cy than those OF |
purely economic nature, 1t would, In mys|
be well to endeavor to bring about
closer commercial connections with the other
people Of this continent. I am happy to be
able to announce to you that Russia now
treats us on the most-favored basis.
Economy in Expenditures.
I earnestly recommend to the Congress
the need of economy and to this end of a
rigid scrutiny OF appropriations AS examples
merely, ! call your attention to one or two
specific matters. All unnecessary offices
should be abolished. The Commissioner of
The General Land Office recommends the
Adjustment of the Office of receiver of pub
lie moneys for United States land Offices.
This will effect saving of about a quarter
of million dollars year. AS the business
II the nation grows 1t is inevitable that there
should be from time to time a legitimate in
crease in the number Of officials, and this fact
renders 1t all the more important that when !
,fices become unnecessary they should be
lbolished. In the public printing also large
'aving OF public money can be made There
constantly growing tendency to publish
masses OF unimportant information. 1t Is
probably not unfair to say that many tens
" thousands of volumes are published at
which no human being ever looks and for
which there Is no real demand whatever.
Yet, In speaking Of economy, / must in no
wise be understood as advocating the false
economy which Is in the end the worst ex-
ravagance. To cut down on the navy for
Instance, would be a crime against the ma
Ion. To fail to push forward all work on
he Panama canal would be as great folly.
Currency