The news-democrat. (Providence, R.I.) 1906-1909, 1906-12-28
IS
TRUST MOTHER

]
/ transferring the regulation ~ all insuI-
/ ance companies doing an interstate busl-
| ness 10 the national government inc puI-
pose OF regulation Is 10 secure satetY ana
/ solvency and wise and eniclent mahase-
! ment. and 10 protect the individual pohcy
! holder against the power Of the manage
| ment the tyranny OF the majority.
"NYe need attention 10 methods of regu-
/ lation that are Intended 10 secure man
/ agcment sufficiently centralized 10 be ell
! hcicut and sufficiently representative 70
\ te conducted I'M the interest OF the polcE
I holders as a whole. We need 10 remodei
/ our laws relative 10 the business Organl-
/ cation of the insurance company. Publicity
! is perhaps the most powerful detriment
! to criminal and fraudulent practice
! known 10 modern political science. II -
/ safe to say that had the New YORK IN
suranCc companies been subject 10 an an
nual audit by professional accountants ap-
pointed I'm the interests OF the policy mold
ers most Of the evils and abuses discov-
! cred by the Armstrong committee would
never have existed The law relating TO
the liability OF directors for failure 10 do
their duty. as well as for actual fraud ana
m mismanagement. needs 10 be revised ana
stlll more 10 b. enforced
Following this a paper was read hy WIZ
liam g Johnson. New York manager OF
the Phoenix Life Insurance company or
Hartford. In part as follows;
"The underlying principle upon which
all sound government regulation OF life
Insurance should be based. Is the require
ment OF a complete publicity concerning
their operati accompanied by de-
tailed and frequent accountability for all
surplus and other funds.
what Is necessary for thorough going
insurance reform is a maximum Of pub
liCity, strict accountability, and mini
mum OF legislation.
The law makers have seemingly over
looked the fact that integrity and fidelity
10 trust, can no more he created or
guaranteed by statute, than can the
fidelity OF the citizen TO his marriage vows
be enforced by legislative enactment.
What is wanted Is not legislation, but
more character. not statutory restriction,
but a deepening OF the sense Of trustee
ship and such a public operation Of the
affairs OF the companies as Will not only
make evil or extravaganza certain OF de-
lection. but will enable the individual
citizen TO Judge more intelligenty con-
cerning the merits OF the administration
OF his company.
Laws under which the state interferes
with details OF management. or dictates
methods OF operation, are unsound. be-
cause government should not aim TO do
Cor the individual what the individual can
better do for himself. and because with
legislation governing the fundamentals OF
publicity and accountability, the evils
which have led to the demand for Inter
ferenee In details will be cured by the al
most automatic operation OF the laws Of
progress and the effect OF competition.
which are always to be preferred TO arbi-
trary restriction.
"All so-called retalatory tax Laws
should be repealed; and all laws imposing
| taxation upon life insurance should be so
/ amended that insurance should be taxed.
| all s.Faf n
meet the cost OF government supervision,
this tax to be levied solely on surplus
withheld from distribution, not on reserves
or premium income
Following this there was a discussion
! of a general nature started by Senator
| William Armstrong OF Rochester, n. Y,
and participated In by Frank Edward
Horack and w. G.. Langworthy Taylor.
This afternoon in Rockefeller hall at the
annual meeting OF the Historical associa-
tion reports for the year were presented
and the election Of officers was held.
At the meeting OF the Economic associa-
ton three papers were read on the relation
! of the protective tariff To the trustSA The
first OF these was by Albert Clarke sec
retary OF the Home Market club OF Bos-
ton, whose paper was I'm brief as follows:
Since the tariff cannot discriminate be-
tween large and small concerns IL cannot
be used as a corrective OF trusts without
destroying the best corrective. domestic
competition The practices hed up To an
Indignant public I'm this country as due to
protection are common under free trade
In Great Britain. and are there justified by
champions Of that school.
1T is no part of the purpose OF protec-
tion TO promote monopoly, but one of its
greatest effects is 10 promote domestic
competition. There is no protected mo-
nopoly I'm this country unless II Is an In
ternational trust, and such n trust can be
broken or regulated by the antitrust
laws With every country but one pro-
tecting It's markets against our products,
where Is the economist Who would advise
throwing down or much reducing our
tarin walls and exposing our country TO
the scrambles OF what Thomas B. Reed
called "a beaten world "
Following this was the paper OF Byron
w. Holt. editor Of MoodyS In which he
aSsailed the Mckinley and the Dingley
tariff laws and their results I'm brief as
follows.
Monopoly Is the mother Of all trusts.
though not all monopoly combinations
are trusts. Tariff is the moot important
factor IN producing trusts 7ud the most
conspicuous special privilege IN this coun-
try. Not only does II result I'm producing
directly more trusts than all ~ the other
factors combined, but indirectly II is
largely responsible for much evil In the
I hhN'n VI Nhl'N II ~ NOT llf primary
cause. With nine-tenths OF the possible
competition excluded by a tariff Il Is
! comparatively easy 10 stop competition
z on the part OF the remaining tenth OF the
competitors
1T Is comparatively certain that the
amount OF this tarin trust graft may b.
ceeds the graft In both our railroads and
insurance companies. Some idea OF the
amount of this tarin thust graft may he
obtained from considering the difference
3 between the rise OF prices in this coun-
( try and I'm England
we put certain statutes Oh our books
s 10 ohStruct trade and certain other
p statutes. our politicians are not bent on
, 'Ntermiuatlng tho trusts that supply cam
paign funds that keep them I'm power
! They vote Tor tarin laws to help the
\ trusts and harm the people and thcn for
3 antitrust laws that will neither harm
h | tho trusts nor aid the people
p ANY other remedy than the remova
q . Of the tarin that uourishos and protect,
q | trusts IS spurious and futile The trust.
. know that their friends could not Ions
70 remain In power n they did not pose a,
- trust-husters' and spend part ~ thcu
time cOncoCting harmless remclIce