The Democrat-sentinel. [volume] (Logan, Ohio) 1906-1935, 1906-04-19
BILL ENDORSED
BY ROOSEVELT
Insurance Bureau In The Department
of Commerce and Labor.
URGES PROMPT LEGISLATION

Federal Supervision Of Insurance Bua-
ness Soueht--Attorney General ne.
tsins Counsel to Inquire Into csal
Trade - Brief Statement Issued to
the Public.
Washington, April 49, President
Roosevelt transmitted to congress
special message relating to insurance
legislation. Accompanying the mes.
sage were the report and recommends.
tions OF the insurance convention held
in Chicago last February. Among The
recommendations is the draft Of bin
which congress is urged to enact into
law with such amendments as its
wisdom may suggest The presiden.
urges the enactment Of the proposed
measure.
The bill recommended was drafted
by amending the measure introduced
in congress by Representative Butler
Ames CMass.J. 1t provides for the es
tablishment Of AN insurance bureau IA
the department of commerce and labor
and for the appointment OF a commits
sioner who shall have no official con.
nection with any insurance company
OF who shall NOT be interested iH the
business of any company except as =
pOlicy-holder The commissioner :s
required at least once in three years
to examine all companies doing buS-
ness in the District of Columbia If.
upon the examination. the commission
Ell is Of the opinion that any domestic
insurance company is insolvent oil has
exceeded its powers, or is in any man.
ner transactiug business contrary .0
the provisions or this act, the bill pre-
Yldes the commissioner shall lay the
fact before the attorney general, who
may apply to the supreme court OF the
district for an injunction restraining
it's further business. Under the same
conditions he is authorized to revoke
the certificate of a foreign insurance
company A minimum capital stock
Of $50000 is proposed for accident
companies and 100000 for plate glass
and elevator insurance, and $4,000
for all other companies. 1t limits the
investment of capital stock. COmpH-
nies may also be organized on a pre-
liminary stock plan. Directors are
made liable for any illegal investments
and companies are not permitted to do
both participating and non-partici-
pating business.
Inquiry Into Coal Trade.
Attorney General Moody gave out
the following statement:
Charles Il. Hughes of the New York
bar and Alexander Simpson, Jr., of the
Pennsylvania bar have been retained
by the department of justice to take
under consideration all the facts now
known or which eau be ascertained TO-
lating to the transportation and sale
Of coal in interstate commerce: to ad,
wise what, if any, legal proceedings
should be begun, and to conduct, under
the direction of the attorney general.
such suits or prosecutions, if any, as
may be warranted by the evidence ia
hand and forthcoming The general
subject for some time has been under
consideration by the department. 1t
is believed that sufficient evidence has
been developed in the Investigations
of the interstate commerce commits
sion and otherwise 10 warrant the em
ployment of counsel under the proYi-
sions of the appropriation act of Feb
25 1903, An important element in ar
riving at this conclusion is the recent
decision of the supreme court in Hale
against Henkel holding that the fed
eral government has the right under
legal proceedings toeNumine the books
and records of corporations engaged in
interstate commerce"
MI Hughes is well known in conEsc-
tion with the recent investigation IN
New York, in which he acted as coun-
sci for the insurance committee OF the
state legislature. Simpson is leading
lawyer of Philadelphia.