Omaha daily bee., 1906-04-01

in a statute. and there is the possibility Of
almost inconceivable harm to the real inter-
ests OF the insuring public by the whole
sale manufacture OF legislative straight
jackets for insurance companies.
Eyes Turned TO new York.
The action Of the New York legislature
win be watched with interest. Though the
Armstrong committee wisely avoided in
quiry into those conditions which were
stated by insurance officials as a reason
for the expenditure Of large sums to pre-
vent hostile legislation, there is ground for
the fear that the state OF New York will
shortly enact laws that will virtually place
the management and control of the In
surance business Of the United States with
the insurance department Of that state.
This will be done by prescribing not only
how the business OF the New York COM
panies shall be conducted in New York
state but elsewhere, and by requiring COM
panies OF other states that may wish to
enter the state of New York to comply
with such requirements in detail. And
these requirements will involve not only
control of the plan or method by which
the business is conducted, but will place
hitherto unheard-of restrictions upon the
Investment of the funds of the companies.
No fault could be found with any plan TO
compel publicity with regard TO such mat
ters, but to say to insurance companies
that they shall not he permitted TO conduct
their business except as the legislature OF
a state shall direct is revolutionary and
may destroy this great institution.
Il was stated within n year by a New
York paper that the big Three life COM
panies-the Equitable, the Mutual and the
New York Idfe-have taken more wealth TO
New York than the Caesars took to Rome.
No wonder that New York wants to control
tho insurance business. This proposed leg
islation repudiates the accepted usage Of
the commercial world that makes insurance
an element of commerce, and thus the prac-
teal Importance of federal supervision ap-
pears from a new angle New York should
not be permitted TO extend its absolute do
minion to an interest that vitality affects
the whole American people. The marine
commerce OF the United States the
industrial enterprises OF this country
are now chiefly centered in New York. and
Il has practically sole direction of these
factors of our commerce; but the insurance
Of America is n trust. and the benefciaries
Of the trust are the widows. the orphans
and the victims Of misfortune by fire or
other calamites. why should the interests
Of all these millions be confded to the in
surance department of the state OF New
York;
Argument for Government Control.
The Equitable life received less than
twenty per cent OF its total premiums for
1903, from it's policy holders residing in
New York state. The Mutual life received
1873 per cent and the New York Life but
a fraction over 10 per cent Of their total
premiums from their home state for that
year.
The seventeen largest fire insurance COM
panies of the state of New York with
combined total of risks aggregating S5,740,-
OOo, 600, wrote only % per cent OF their bust
ness for 1903 in New York, and received
only 1871 per cent OF their premium in
come for that year from their business
done in the state OF New York.
These statistics are significant. 1t may
be conceded that the New York insurance
companies. fire and life. are entitled to
all the business outside of the state OF
New York that they have. The fact is,
however, that over 50 per cent of all the
business transacted by the big Three"
life companies is done outside of New
York state; and that IS per cent of the
business OF the fire insurance companies
Of New York state, which include some
of the strongest and most reliable in the
world. is done outside Of that state. The
point u.s. that the state Of New York ought
not to be permitted to dictate to the. rest
of the United States on so important a
subject And It does not AFFECT this view
that some of the insurance commissioners
Of the country, who are considerably in
evidence Just now. approve the proposed
legislation.
II the control OF the interstate insur-
ance business of the United States is to
rest in any one department, whether
actually or nominally, that department
should be one whose administration win
be under safeguards OF higher character
than those which originate from Tammany
Hall and the New York legislature. Let
the state Of New York control its own
business: interstate transactions in insur-
ance ought to be supervised and regulated
by the federal government.
RALPH w. BRECKENRIDGE
NJ