St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1905-12-27
Congressman 1asklns' Speech.
He Addresses the House on the FederaI
Supervision of Insurance,


The CALIFORNIAN gives in full the ad.
dress OF Congressman Haskins in the
House last Wednesday On federal super.
vision OF insurance. Mr.. Haskins said.
Mr.. Chairman, the discussion which
the resolution now pending before the
committee has evoked seems TO have
taken a very wide range, but in the brief
time | shall occupy | shall confne nv re-
marks to the question OF the proposed
federal supervision Of insurance. The
question as to whether insurance. life
fire, or marine, can be brought within
federal control is not to be determined
upon the amount ofinsurance that has
been written in one state, upon the an.
plication OF citizens of another state: nor
is 1t TO be determined upon the basis of
the honesty or the dishonesty of the
officers and agents OF the companies So
Letting and engaged in the business OF
insurance, but Tor the reason, and that
only, that the constitution of the United
States has conferred upon Congress the
power to regulate and control the bus-
ness OF insurance. No one claims that
federal control can be exercised over in
surance companies that do business only
within the state where located under the
terms OF their charter; the action must be
justified, II at all, upon the ground that
they do business in other states. and.
therefore, by reason of its interstate
character it comes within the provision
of the constitution with reference to inter.
state commerce. AS yet no one on the
floor OF this House has advanced a con-
vincing argument nor cited any authority
to demonstrate such proposition to be
true, nor has the President done that in
his message. He simply advises action
In that direction, subject always, OF
course, to constitutional limitations.
do not think misrepresent the posi-
ton OF laymen in general when l say
that they are very apt to construe the
constitution and the law to be such as
they severally would like to have it,
while the lawyer, whether sitting as
court or as a legislator, is. or at least
should be, governed i'll his construction
by the evident intention of the trainers
OF the constitution. well-estabshed pre-
cedents, and the decisions of the courts.
Insurance rests in contract bet ween the
parties thereto. The Reinsurance COM
pany, upon the application of the
assured and the performance Of certain
conditions on his or her part, promises
to pay upon the happening of an event a
certain sum OF money to the assured or
to the benefciaries named in the policy
or contract.
The fire and marine insurance COM
panies, in case OF loss by fire or water or
other casualties, agree to pay sum of
money to the assured, etc; and although
the parties to the contract may reside IN
different states, involving a sort of COM
mercial intercourse bet weer two or more
states in the regular transaction OF their
business, it is bold lawyer who will
contend that these contracts OF insurance
are merchandise or commodities OF trans
portation that come within the provision
of the Interstate commerce clause of the
constitution.
II it be true that such transactions
constitute interstate commerce which
Congress may regulate, what may not
Congress do in this direction? The saw
ings banks of the country, and especially
those OF that section from which come,
hold in trust millions OF m ney, the
BiOPSiNp W q WI Aol ~ W IdOOl
ing men and women and Of widows and
orphan children. Millions upon millions
OF this money has been and constantly is
being invested in real estate mortgage
securities in many OF the other states by
the officers OF these institutions. These
loans, like transactions of insurance,
constitute contracts between parties
residing in different states, and involve
transportation between the states by
means of the United States mail in the
transmission Of letters, mortgages, trust
deeds, money, and checks. II the federal
government under the interstate-com-
merce clause OF the constitution has the
right to extend its paternal hand for the
protection of the individual in the
matter of insurance. it certainly has the
same right in the matter of the savings
banks. The transactions of both alike
rest in contract and only in contract,
and does not constitute that kind OF
commercial intercourse that does the
sale of merchandise in one state which to
complete the transaction requires to be
transported into another state. Policies
of insurance, like the promissory note
and mortgage, are not articles of mer-
OF promise to do something.
Great corporations manufacture com.
rnodities for sale and delivery into other
states as we'll as in the state of their
creation, and yet the supreme court OF
the United States has decide1 that the
affairs OF the corporation can not be
regulated by congressional enactment,
but that it is the manufactured article
only which. Congress can interfere with
when it commences it's journey across
state lines. The supreme court has
solemnly adjudicated in several we'll con-
sidered cases, cited by the chairman of
the committee on ways and means, that
the writing OF policies or contracts of
insurance and the delivery OF them to
parties in another state was not inter-
state commerce.
The commissioner Of corporations, in
his report, just published, says.
In view OF the decisions of the Supreme
Court have not felt warranted in try
ing to assume jurisdiction over insurance
companies tor the purpose of investiga-
ton. The fact that state supervision
has failed to prevent great abuses in the
management OF some companies does
not OF itself justify federal action. 1t
must be shown, first, that insurance is
subject to federal regulation under the
commerce clause OF the constitution;
second, that federal supervision would
be of such a character as to correct
existing abuses and prevent future ones,
and, third, that such supervision would