86
THE GREEN BAG
companies in fees for licenses, examinations, recourse to the courts, or with a reasonable etc., and for taxes is said to be as much as amount of lobbying, might secure a legisla $9,000,000. The insurance department of tive committee of investigation. But the one state only, Wisconsin, in 1903, collected very nature of these insurance laws requires over $500,000 from insurance companies. the vesting of a large measure of discretion The cost of state control of insurance as in the officials of the insurance depart thus shown appears the more startling in ment, and the insurance company denied contrast with the cost of Federal super by them the right to do business within the vision of all the national banks of the state, attacks their adverse ruling under a country, which, during the same year heavy handicap. The company labors under amounted to only $325,000. These figures the popular presumption that a dishonest would lead us to believe that much of the organization has been detected, while the state legislation regulating insurance is not official highwayman is supported by a pop so much for the benefit of the people in as ular belief that by very great vigilance and suring to them honest dealing and financial acuteness he has discovered a public peril, responsibility on the part of the companies, and rendered the people a mighty service, as for the profit of the respective state thus triumphantly justifying the establish ment of an insurance department. If the treasuries. But trying as these numerous and costly matter comes to trial the defendant finds regulations may be, they are not in them salvation in the complex and essentially selves the chiefest grievance of the insur difficult character of the insurance business. ance men against the present order of state Neither judge nor jury is apt to be expert control. The fullness of their woe is found in insurance matters, or competent to com in the unfair administration of the insur prehend adequately the complicated book ance laws by dishonest officials. While it keeping that tells the story of a company's is assuredly true that most of the officials business; nor are the members of a legisla of the state insurance departments honestly tive committee more apt to be acquainted endeavor to enforce the insurance laws in with the abstruse science of the actuary. accordance with their true spirit and intent, Hence contests waged by the blackmailed yet the unlimited power possessed by many insurance companies against the officials of of these officials to hector the insurance insurance departments are apt to result companies, or even to do them serious in only in expense and unpopularity. Insur jury, offers them great temptation to ex ance corporations never intentionally assume change their official favor for monetary con the r&le of martyr. Therefore, when "held siderations. We have sufficient reason to up" by examiners and other insurance de believe that in some states insurance ex partment officials, the insurance companies aminers regularly require large payments pay with such grace as they can command, from insurance companies before giving the and then cry out loudly for a change of certificates necessary to enable them to system. It was recently stated in a re continue to do business in those states; and putable insurance organ that some of our that a perfectly solvent and sound company large companies, though unquestionably refusing to pay such a bribe will be denied solvent, pay as much as $250,000 in annual the certificate that is given the bunco in blackmail to state examiners. In view of all these facts, we can readily surance company of the get-rich-quick-order that is willing to part with some of its ill- understand the desire of the insurance cor gotten funds for the private benefit of the porations to be subjected to Federal con insurance department officials. Of course trol. They think, by taking to themselves the injured insurance company may have a Federal master, to escape the servitude to
