Evening journal., 1905-09-27
INSURANCE FUNDS
FOR CAMPAIGNS
Companies Make Them to
Further Supervision by
the Government
OPPOSED TO RATE REGULATION
BY William woln smith.

surplus from the campaign fund OF last
year. might with very good grace return
the $4,000 Chat President Mccall of the
New York Life Insurance Company had
contributed through George W. Perkins,
OF j. p. Morgan and Company President
Roosevelt 1t appears, ontertains the same
idea and there Is every reason TO believe
that he is consulting the leaders Of his
party on this point While Mr Roosevelt
has nothing to do with the national came
pa.gn committee, which Is the organic
body Of the Republican party. at the same
time as the successful candidate of the
party and the President OF the United
States his wishes are likely Co prevail
unless stumbling block of huge pro-
portions is found la the fact that the New
York Life Insurance was not the only
company OF this kind to make "a contribu-
ton. II is almost a certainty that the
Equitable came down Handsomely. that
/ the Mutual Life Insurance Of New York
gave as much or more than the New York
Life and that Senator Dryden's Company.
the Prudential, was in line
There is no doubt that all mentioned
and probably many others gave large
sums la 1896 and 1900, justified from their
standpoint by their belief that their in
vestments were endangered by the free
silver agitation But in i90l there was no
such danger and tho result was fore
gone conclusion, so much so that the bet
! ting was five TO one in favor OF Roosevelt.
! Campaign contributions under such cir
cumstances from life Insurance companies
who properly should have no interest in
! legislation further than TO protect their
rights, are naturally regarded with disap-
proval especially by the policyhoiders who
foot the bills Speculation is therefore ac-
tive as 10 the impelling causes which led
these companies TO make such princey
/ contributions ana the suspicion has been
aroused that something was expected IN
return. II is not strange in view OF the lit
tie information which the great public =
on the life insurance question. that out
of the scandals which have been uncov-
cred there should be growing a demand
for federal supervision Of life insurance
companies
IT is therefore interesting TO note that
instead Of these companies opposing fed
eral supervision they are the ones which
,are seeking national legislation to that end
and their campaign contributions admit
of The explanation that they were made
TO further their interests i'm this connec-
ton. When the Department of Commerce
and Labor was organized certain Of the
insurance companies made a vigorous ef-
fort to have included IA the department
a. bureau OF insurance. While the powers
of the bureau We're only vaguely outlined
its establishment was all that was desire,
at that time as this once accomplishe,
the duties and powers could be broadenes
AS the occasion arose and opportunity an
forded The opposition OF Southern State.
Rights Democrats, however, knocked thi.
scheme in the head Not long ago Sena.
tor Dryden. president OF the Prudeniia
Company and former Solicitor General
Beck. who especially represents the New
York Mutual on this subject, Slipped over
to oyster Bay and held a long confer
ence with the President on their pet pro
tect.
Az the conclusion It was announced thai
the President favored tho plan and tina
$ Senator Dryden would introduce the bin
II might have been added that Mr. Becl
would cooperate to the end that the bill
might overcome several constitutional dc
fccts which have hitherto operate,
against the scheme. Whether Messrs. Dry
den and Beck can draft a law which viii
consututionally give the general govern
lnent control of life insurance is doubte
as there are decisions to the effect tina
policies are not Interstate commerce"
Another reason which is freely given al
actuatng the companies TO make heav!
campaign contributions is the fact tha
they and their associates are uniforml
opposed TO railroad rate regulation b.
tie government Messrs. Alexander. Nc
Can, Perkins and others have made heav
investments of Insurance funds I'm rail
way and steamship bonds and throug
the trust companies and banks owned O
controlled by tile life Insurance companio
have loaned and are lending untold mil
lions ON railway securities. glance a
the situation reveals the peril. An rail
road stocks are up away up, Many ar
selling at thirty to fifty dollars shar
more than they We're four years age
rhis is not due TO stock manipulation
but TO the earnings of the roads whic
nave iN lilNNt IlSttiiltt0 -ntti ll'iNdoiii
by leaps and bounds More than sa
re- eight or ten per cent at the outside pai
he on common stock Of a railroad is dan
re gerous as it gives impetus to the cry o
m the shippers and consumers that rail
he road rates should be regulated for thei
f. benefit as wen as that Of the stock AM
bondholder.
- Ill-bred and common" people enter
tain the idea-to Wall street absurd-tha
common carriers with public franchise
and rights of enormous value owe some
thing to the public. Therefore Wall stree
strives by issuing additional securities &
keep the rate of interest down to a poin
where the complaint Of the shipper as &
excessive rates is offset by that OF tn
stocl1holder as to meager dividends. Blu
with the volume Of freight and passed
ger traffic constantly increasing enorm
ously, just as the golden flood continue
to pour into the Golfers OF the insuranc
companies despite the disclosures. eve
the Wizards of Wall street cannot waite
the stocks rapidly enough and they con
tinue 10 climb skyward.
Now to control a stock Of great rail
road corporation looks like dineron
matter but suppose IL is capitalized a
hfty million dollars selling az par. Fift
one per cent. would give control and tina
can be had for S25.5OO.o0O On that amour
- OF stock the banks will loan to With