Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1906-01-05
INSURANCE NOT SUBJECT TO STATE CONTROL
Verbatim Report Of the Speech which Hon. Kedge askin;
Delivered in the House of Representatives Dec 20

character as to correct existing abuses
and prevent future ones, and, third, that
such supervision would result not only in
greater security to policy holders, but
would relieve them, through their COM
panies, of the great and unnecessary ex-
pense Of duplicate inspections and inves-
legations by different states. Seemingly
the most effective way to settle the ques-
ton is for Congress to so legsate upon
the subject as to afford an opportunity to
present to the supreme court the question
whether insurance as now conducted is
interstate commerce, and hence subject to
federal regulation.
This is the hope and prayer of those
who would invoke federal interference
with many of the common transactions of
life, including insurance, that II Congress
will obey public clamor gone wild and
enact a measure declaring insurance cor
porations subject to federal. control the
supreme court may reverse itself and de-
clare the enactment constitutional.
While the justices of the supreme court
of the United States, like the judges of the
several state courts, are human. still the
members of that greatest of all earthly
tribunals never have, and may this capitol
crumble into dust whenever they do adj
judge any law of Congress constitutional,
not in response to their own high con-
ception of duty and understanding of the
law and constitution, but at the demand
of great popular clamor. They were not
moved by any such base influences which
may be termed by some the voX popui,
when they decided the income-tax law
enacted by Congress to be unconstitu-
tional. and may the day be far distant
when, by Congressional enactment or
judicial decision, the authority of the
states over their own corporations shall
be entirely destroyed.
l am a policy holder in both the New
York Life and the Mutual Life of New
York, and l feel that my holdings are more
valuable by reason of the investigation
of the Armstrong legislative committee.
If evils have existed or do exist in the
manner in which these companies have
conducted their business, and no one
doubts 1t, those existing evils can be
remedied much more promptly and eff
fectively under state than under federal
supervision.
The righteous indignation. an outraged
public sentiment sure to exist among the
people of the state that created the cor
poration, and will certainly be made mani
fest upon the disclosure of the least evil
dence of evil doing, will demand in no I'M
certain sound that its officers and legisla-
tors shall correct the wrong, and the de-
mand will become effective long before
the national government, its officers and
agents, have awakened from n sound and
dreamy sleep. l represent in part a
little state way up among the green hills,
having a population according to the last
census of a little over 343, 900 souls 1t
has AZ savings banks. carrying the de-
posits of over 10000 men. women. and
children, amounting to over $47. 900, 900,
with an undivided surplus of over 49, 000,-
900: 1t has 40 national banks with a paid
up capital of $6,1S5,000 The former not
withstanding they are constantly loaning
money IL other states, are under the eX-
elusive jurisdiction srnd-supervision of the
state, where they should always remain.
Each of these banks are Thoroughly ex-
amned by the state inspector of finance
twice a year and his report made public
annually, and again biennially. Bank
ruptcy or voluntary liquidation is a thing
unknown among them, by reason of the
conservative, careful, and honest manage
ment of their officers. The 40 national
banks are, of course, under exclusive
federal control. and while no present I'M
soundness is known to exist yet within
the last 25 years have known of at least
five that have been obliged to close their
doors by reason of their insolvency. and
the insolvency of at least two of them
had been of long standing, notwithstand-
ing the inspections of the national bank
examiner.
We have another institution in our
state of which every Vermonter is proud.
1t Is the National Life Insurance company,
at Montpelier chartered by the state
over so years ago, organized and for
years managed by DR.. Julian Dewey. the
father of our present great admiral. 1t
has well invested and secured assets in
round numbers of $32 900 900: it's in
surance in force amounts to over S135, 00O-
900; its annual cash income meets its
yearly liabilities, leaving an annual saved
income" according to its last years re-
port of nearly $4,000, 900. Its present presi-
dent was for many years the actuary of the
company, and no man has a better under
standing of life insurance than he. He is
paid a salary of $4,000 per year. and it's
other officers a reasonable but in no sense
an eXorbitant compensation. The affairs
of the company are conserva lively and
carefully managed in the interests of its
policy holders. and they require no federal
supervision.
Vermonts secretary of state and state
treasurer are its insurance commissioners
who examine and report upon the condition
of the company. as they do of its fire in
surance companies. The state super
vision which these corporations have, to
my mind is far superior to any super
vision that could be given them, were 1t
constitutionally permissible to place them
under federal control. Believing as 1
do that Congress has no constitutional
authority to legislate upon the subject
of Insurance. but that 1t belongs to the
| states exclusively to create, supervise
and control, shall vote If the opportuni-
ty offers, to commit that portion of the
Presidents message to the committee on
| the judiciary. loud applause.l