Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-08-17
Favors Federal Control Of
Insurance Business.
Long Conference With Senator
Dryden and Jas. N. Beck. !.
They Represent Two Large Companies.
Whole Subject Carefully Reviewed.

! of Il conference at Sycamore Hill, this
AFTERNOON. so important that one of the
participants, James NJ. Beck, formerly
an assistant attorney general of the
United States ana now special counsel
Of the Mutual Life Insurance CO., of
New York. missing the regular train
from Long Island City to oyster Bay,
chartered special train from the Long
Island Railroad Co, in order to meet
lis engagement with the President.
The parties to the conference were
the PreSid, Mt Senator Dryden of New
Jersey, president of the Prudential
Insurance Co, and Mr.. Beck. The con
ference followed the luncheon. The
President for a considerable time, but
especially since the disclosures made
during the last Jew months regarding
the operations of the Equitable Life
Assurance Society. nas manifested a
deep interest in tne problem of national
control of the Insurance business.
Several months ago. at the Presi-
dents request the subject Of national
| supervisory control of insurance was
investigated by Commissioner Garfield
| of the bureau of corporations and the
| conclusion WIS reached that, under eX-
| listing. f. dcraf laws. the insurance bus
| mess could not be supervised by the
bureau of corrorati lions. because. in the
! light Of III" constitution and in view Of
| certain decisions Of the federal court,
| it was hot regarded rs interstate COM
merce.
Al the last session Of Congress, Sem
| ator Dryden. who Is recognized as an
1 in, I
J 4 bill in the Senate providing in brief
\ Tor supervisory control of interstate in
| siralce business by the bureau of cor
| pOrat Ions. 1t was along the lines Of this
| measure that the conference, today,
| proceeded. The President is known TO
be i'll favor of federal control of the in
| SuranCc business. If 1t can be brought
| about conStitutiUnnlly. Whether it can
be, Is the point Yet TO be determined.
| That the supreme court Of the United
| States eventually will be called upon
| to pass on the question there is little
! doubt. At the conclusion of the con-
| ference. Senator Dryden talked frank
| ".
| we discussed the whole subject Of
| federal supervision OF the insurance bust
| hes said he. and our talk was very
| satisfactory. Personally, / am heartily
| in favor Of such superI son rs the ma
| tiOnal government. because 1t would IN
| sure TO companies doing business in sew
| cral or in many states u wcll-dctinrd and
| wcll-considercd set Of regulations ana a
| definite policy.
| My opinion is that q very large ma
| iority of insurance companies will favor
national supervision. Under existing ar
| engagements. We are Obliged to conform
| to different laws and regulations in prac-
| ticaily every state. Tn. laws and reSu-
| lations are being changed continually
| and different insurance departments
| place different interpretations on the
| same laws. What insurance companies
want is a uniform. harmonious and con-
| tinuing policy. and that we believe is to
! be had only through national super
| vision
| Are there not legal or constitutional
| obstacles to national control of insur-
ance?' was asked.
"Oh. yes replied Senator Dryden.
| There are lawyers who maintain that
| it is absolutely unconsti utional and they
| point to decisions Of our courts in sup
| poI' of their contention.
| Mr. Beck also talked freely regarding
the subject of the conference. As Il law
| yer, he expressed the belief that if the
subject were brought fairly before the
| supreme court. it's decision would be in
favor of federal control.
| II believe" he said. such Il law will
| be Enacted, and Of course Our first effort
! will be to obtain a decision I. gardinS It
by the United States supreme court"
While no announcement was made Of
the conclusions of the conference, if any
Were reached there is ample authority
for the statement that President Roose-
vclr will discuss the question "f insur-
aucn in his forthcoming message to the
Congress in the light Of developments in
| the last six months. That he will recon-
mend the enactment of legislation pro-
vid!ng for federal supervision of inter
state insurance. there is no room for
doubt.
!, Assistant Secretary Charles II. Keep
| of the treasury. chairman of what IS
known as the Keep commission. appoint
) "a bv the President a few months ago
to make an investigation into the organ
iznti0p. personnel. correspondence, meth
| ods Of purchase Of supplies and keeping
) accounts n, the various government de-
+, | ,or,ments in Washington, came TO Oys-
. |
| tcr raw to present the report and find
inqa Of his committee in the recent IN
vestigation of the proposed purchase Of
4vraeotting machines for the government
printing Office.
Further. than. to say that the President
, nod .nnroved the findings Of the com
;; mission and that whatever announce
,,,a,,t mig be made concerning the re-
mort must come from the President. Mr.,
Keep declined 10 discuss the matter. 1t
is known. however that the commission
developed an unfortunate condition OF
afrairs in the government printing ohirf'
q condition not necessarily dishonest but
detrimental to the interests OF 'i'e gov
| eminent.
special from CleVeiafu' oi'-O'
: Luther c. Thompson mas INV
al,