New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-22
NO FEDERAL CONTROL.
REPORT ON INSURANCE.
Po7cer of Regulation Belongs to
States, judiciary Committee Holds.


has been drafted by Chairman Jenkins, and is J
IN the hands of members Of the committee for
perusaL An unofficial poll Of the members Of
Jhe committee indicates practically that all Of |
them concur in the correctness of this conclu- !
sion. The report Of Mr.. Jenkins may, therefore, !
be taken as the basis Of the answer the COM
mJtee Is TO make to the House in compliance
with the instructions of that body
The report coIates all the important court de-
cislons on the questions involved. treats each
extensively ana reduces the whole problem to
these two principles:
The Supreme Court of the United States has
declared and has never been shaken or weak
SHtd IA maintaining, first that insurance is
J not commerce, and second. that Congress cannot
impair the police powers of the states.
As to the latter principle. Mr.. Jenkins says:
Let it be said kindly and not Extensively that
! il is mOnstrOUs doctrine subversive of our
/ uusl system Of government, to even suggest af-
! - me uIsIlpuJion of these great powers be-
- 49, tne FEDERAL government and the states,
/ IhaI the federal government. created by the
S,aJes can take from the states the power they
/ LIaNe always enjoyed and expressly reserved to
mem by the Constitution exclusive in the states.
/ Hamilton himself never made such a claim.
The advocates Of federal regulation concede,
/ according TO the report. that insurance is not
commerce. The report says:
I The Supreme Court has had great difficulty in
. marking the boundary line in each case as it
J mas arisen between the police power of the state
! and the commerce clause of the federal Consti-
] luton In each case, jealousy protecting each
/ power as they came in conflict, and not until
/ now, IN a moment of excitement and intense in
/ terest has It ever been suggested that Congress
/ can impair the police power of the states.
Answering the argument that the Supreme
Court would reverse itself if the question were
! again presented Mr.. Jenkins says:
! If this is correct then there is no necessity
for any action by Congress. The question can
! again be presented to the Supreme Court, as it
has many times in the past Then Congress will
ne renewed OF the charge that the legislative
! branch of the government is trying to coerce
the judicial branch of the government: and the
important constitutional question that Congress
cannot impair the police power of the states viii
be removed from the case; and Congress, by fail
ing or refusing TO act cannot prevent cOnsidera-
| ton Of the question.
The report sets forth Section of Article I
of the Constitution as comforting the only power
! possessed by Congress to regulate commerce.
Mr. jenkins says:
Commerce is more than traffic It includes
navigation, intercourse, transportation of pas
| sengers, interchange and transportation Of COM
! modities or visible and tangible things trans
( mission by telegraph, electrical transmission Of
articulate speech by telephone.
| is commerce has passed beyond the realm of
/ argument, because the Supreme Court Of the
| United States has said many times for great
! number Of years that insurance is not commerce.
| Insurance was well known long before the Con-
/ stitution adopted, and insurance companies
/
the adoption Of the Constitution and ever since
! the adoption Of the Constitution il has not been
recognized as an article Of commerce.
BAD RESULTS OF FEDERAL CONTROL.
The report predicts direfuI results if Congress
takes hand in the matter. Mr.. Jenkins says:
1t is useless to live in hopes that the Supreme
! Court Of the United States will reverse its hold
ing, but assuming that Congress declares that
insurance is commerce and the Supreme Court
holds the legislation constitutional how much
D11ld CF1T1g~ e
such legislation have2 Tt would disturb the very
erIbs+r1Icr11~e Of government by preCipitatng a
| violent conflict between the police power of the
states and the power Of Congress TO regulate
/ interstate commerce To uphold tne Iedera1
power would be TO eXtinguish the police power OF
the state by the legislation OF CoIisL -. -
other words. Congress would admit corporations
/ into the respective states ana nave the ehl4re
Row. the states have the exclusive power of
| admission and regulation II the states nave
the sole power OF admission ana reg uIe ION W &c
is there for Congress to regulator A corpora
/ ton created by the laws of the State OF New
| York is denied admission into any oIheI sLatS.
There is no pretence that Congress can invade
the State of New York and regulate tnat cor
! poratiou in its business. The power OF the state
| is exclusive. and the corporation would be be
-Ond the regulating power OF Congress, even II
! CONGRESS- declared insurance to be commerce and
the Supreme Court held the act constitutional.
But assuming that this same corporation is au-
mitted into every state In the union on saIls5
factory terms and conditions, il would be beyond
and not within reach of the regulating power OF
Congress
and concede that II is entirely optional with the
states to admit or exclude insurance corpora
tions Hence it follows that the state has
entire power TO regulate, and a declaration OF
the Supreme Court, with or without legislation
| that insurance is commerce would not give Con-
eress anything TO regulate. The business can
he carried on without commercial transit. and
it is only during commercial transit federal
power can be exercised II IS conceded JnaL
when a state admits foreign corporation Its
rights are the same q domestic corporation
within the limits Of the state as long as the law
is cOr7uIied with. Hence this excludes any ac-
/ ton Of Congress in any event The state agent
can get his policies printed IN the state ms com
), pauy has entered. and money enough can be
kent in the state to pay the death losses. The
only thing i'm commercial transit would be
money shipped from time to time, and this
would not give Congress any control over the
corporation its business.
Again the company could incorporate in any
or an of the states Of the Union In tnat event
the power of Congress could never attach NO
authority has been cited to prove that the fed
eral government has any VisitOrial power over
corporations "a does not create.
The difficulty of administering federal regula-
lions is emphasized follows.
What can Congress act upon under its power
TO regulate interstate commerce Congress can
not prevent the making OF "a contract OF lnsur-
auce between company IN New York and a
resident of Oregon. After the contract is made
when will the power Of Congress attach and
10 what2 The policy and premium are not mer-
attach until the merchandise is i'm commercial
transit. il could not become active until the
policy and premium start on their journey and
would terminate when the place Of destination
is reached. and the duty and power of Congress
would be 10 protect both in transit, and that is
the limit of Congressional power This act Of
TRANSFORMATION does not enable the federal power
10 reach the corporations, and the federal
power would not know when or how the policy
1 or premium were 10 be transported. and as it
| cannot auuul the contract II would have TO be
made a criminal offence. and American citi-