The Montgomery advertiser., 1906-01-15
FOR CONTROL
 OF INSURANCE Senator Dryden Has Re-
 vised His Bill, PUBLICITY IS THE KEYNOTE Author Thinks It Will Put End
 to Evils. investigation by New York Legislative Committee Has Been Closely Fol-
 lowed in the Measure--Its
PUBLICITY IS THE KEYNOTE

| washington. Jan. 14.--Senator Dry
 den has revised his bill contemplating
 government controk of insurance ant
 will re-introddce it in the Senate to-
 morrow. He has followed very close
 ly the investigation being conducted by | the New York legislative committee ana | this has aided him in perfecting his
 measure until now he expresses the be.
 lief that 1t will correct all of the in-
 surance evils exposed by the New | York inquiry.
 l Publicity is the keynote of the bill 1 and coupled with this are safeguards | for the detection of a wrong doing and i the punishment of those so offending
 II defines policies of insurance con | tracts as instrumentalities of commerce. and provides for the regulation of the
 business through the medium of a | comptroller of insurance and along 1 lines similar to the control exercised over national banks. The author says he believes this will Eo far toward | meeting the objections of those who 1 have questioned constitutional regula- , ton of insurance.
 The Senator says the bill has the en- | dorsement of the President adminis- tration officials. eminent constitutional lawyers in and out of Congress. and others who are familiar with its gem
 eral features. ss coming nearer meeting
 the demands of the situation than any
 other of the numerous pending meas ures.
 Senator Dryden has long been a champion of Federal regulation. Dis cussing the principle features of the bill, Senator Dryden said:
 Fifty Separate Provisions.
 The new bill providing for regula tion and control of interstate insurance by Congress follows in broad outlines
 my bill of the last session. but with very important notifications and addi-
 tions. The bill contains some fifty separate provisions of which the first thirteen relate to the organization of the proposed bureau of insurance in the department Of commeree and labor. The bureau is to be in charge of a comptroller of insurance. who is requir- ed to furnish a bond of $1O0.000
 '1n nearly all essentials the bill as far as possible. conforms to the organic acts establishing other departments of the Federal government. but in par ticular the national bank act. There Is to be q deputy comptroller, who is also to be a bonded officer. and an ac- tuary who is required to be a person of recognized professional ability and experience. The general supervision and control of the bureau is under the direction of the Secretary of Commerce and Labor, and all fees or other mon eys collected are required to be deposi- ted in the treasury. The comptroller must make ar annual report to Con gress, including the details of all ex- aminations made of companies during the year eogether with complete statement of the receipts and disburse- ments of the bureau
 "The provisions of the act apply to all corporations. associations or partnership engaging in interstate in- surance business, or who make and deliver insurance contracts outside of the State of incorporation, or origin, or authority, but have no application to fraternal societies or organizations car ried on for the sole benefit of members and not for profit. Such associations or societies may voluntarily take ad- vantage of the act, and after comply ing with all it's provisions become duly authorized by the Comptroller to trans act interstate insurance.
 Penalty for Delay.
 The Comptroller lis required to es- tablish rules and regulations and reas- enable fees for conducting the business of insurance. including annual and oth- CT reports to be made by companies. The penalty for failure to make or transmit any report or statement of fact required is $100 for each day of delay.
 The Comptroller is required to have conservative valuation made of the business of life companies. and by such standard of interest as may in his judgment and discretion best serve the purpose to determine and establish the true financial conditions and attendant liabilities of companies.
 Authority and power to inquire into the details and facts of the manage ment of all corporations engaged In interstate insurance is given the Comptroller and he may have the com panies examined by special examiners whenever necessary or expedient. To this end he may invoke the aid of any court of the United States to require the attendance and testimony of wit nesses and the production of books, papers and documents. Failure to obey such order of the court may be pun ished as a contempt thereof. It Is also provided that companies may be inves- tigated by the Comptroller upon the complaint of any State Commissioner of Insurance.
 Tho actual and reasonable expense of every examination of the affairs of an insurance corporation engaged in in- terstate insurance must be paid by the examined. All charges and fees for making such examination. how ever, must h" presented in the form of an itemized bill, approved by the Comptroller of Insurance. and the amount thereof must be paid Into the treasury.
 Corporations transacting Interstate or foro ign insurance are specifically ex- empted from making any other or sep arate statements or reports. or held to be subject to any inqulsitorial pow CTS of examination of its business and accounts other than by the Comptroller ! of Insurance or by the proper author ities of tho State of incorporation or | origin.
 Annual Publications.
 "Corporntions engaged in the busi- | ness of insurance in more than one | State must file a copy of their char | ter. or other documents Of local au- thority and annually publish a list of | their stockholders or trustees They | are required to make a deposit of one | hundred thousand dollars, either with | the commissioner of insurance or with |