The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-17
Question of States Rights
Arises Again in .Insur-
T. a1ce Matter.
Pressure on Moody to Get
After the Southern Rail-
way Merger.
Clash of Partizan Politics
in the Fight on Lane
OF California.
BY w. w. Jermane.

RV TASHlNGION, Dec. 16.-Con- |
wv gross will not attempt to en-
act federal insurance law
until 1t Is settled that the states are
unwilling or unable to handle the ques-
- ton, and that unwillingness or inability
will be determined at the February
convention Of the state insurance Off
cials, in Chicago.
Congress has spent several hours this
week considering the question of federal
control, and the arguments pro and con
have been elaborated with much pre-
cision, particularly in the house, where
the subject was up for nearly the whole
of today's and yesterdays sessions. It
is possible from these arguments to see
that the drift of congressional opinion
is hostile to the liberalization plan, and
that no serious effort will be made to
bring the issue to focus, in either house,
until the Chicago convention has had
an opportunity to register it's opinion.
This situation clothes the Chicago
convention, which will be made up of
delegates from practically all the states,
with greater Importance than it was at
FIRST Thought wouftt pussess.
The democratic argument against the
federal plan is the old argument based
on states rights, and in this day, when
the trend is so decidedly toward an in
creaserof the powers Of the central gov
eminent, that argument has been gal
vanized into life, and 1t is now more
potent than 1t has been at any time
- since ante-bellum days.
LIBERALIZATION Feared.
Tt Is admitted that liberalization
might work a certain amount of good.
but it is feared that in the long run,
it might work more harm. It is also
admitted that the states, taken as
whole, have not managed insurance as
well as the central government would
have managed it, and that their man
agement Of it in the future, even if
the highest hopes Of the Chicago con-
vention are realized, may not be equal
to that which the central government
could employ.
There is further valid argument in
favor Of the federal plan growing out
the several states, a system which is
confusing and expensive and at times
has led to blackmail and bribery.
But while admitting all these things,
u., It is argued here that a determined
effort should be/made to have the states
adopt system of uniform laws for in
surance control, and that the general
Oh 80
sidering the question on it's merits until
after that effort has been honestly and
Entelligently made. The ground for this
- position is the broad ground of public
policy.
Constitutional Rights.
There is another reason, of equal i'm
,ortance as far as congress is concerned
the question of the right of congress,
lnder the constitution, to enact this
egislation. -
For the reasons here set forth those
who oppose federal control are willing
o encourage the Chicago convention,
which has been called as a result of the
Lctivity of the insurance commissioners
# Minnesota, Iowa, Illinois and other
middle western states, and to wait until
i has had time to formulate plan of
tate control before taking up the ques-
ion in congress.
So far as the constitutional argument
s concerned, it is noteworthy that the
PRESIDENT himself is not clear. His mes
age, after reciting the need for better
control, confines itself to asking con-
,ress to find out what constitutional
difficulties are in the way. Apparently
he constitutional argument strikes hin,
Is having some force, and he does not
are to recommend legislation in any
lefnite way until he finds out how
trong this argument is.
Congress Will Wait.
The upshot of the case seems to be
hat congress will do nothing until after
he Chicago convention, and it may not
10 anything then, if that convention
should seem to have taken hold of the
question with determination to have
he states themselves handle it.
Since the decision of states rights is
Continued on Cd Page, 9th Column.