The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-03-22

House Committee Concludes There Is
No Authority for Control
by the Government,
SUPREME COURT QUOTED
ADMINISTRATION IDEA KNOCKED
IN THE HEAD.

Washington. March 2L-That there is
no constitutional authority for federal
control of insurance or other state cor
pOrations other than railroads is to be
the conclusion reported to the house by
the judiciary committee.
The report has been drafted by Chair
man Jenkins of the committee, and is
now in the hands of members OF the
committee for their perusal. An un-
official poll of the members indicates
that with practically no exceptions they
concur In the correctness Of this con-
clusion. The report of Mr.. Jenkins may
therefore be taken as the basis OF the
answer the committee is TO make to the
house in compliance with the instruc-
tions Of that committee. The report
collates all the important court de-
cisions on the matter involved. treats
each exhaustively and reduces the
whole problem to these two principles:
Decision of Highest Court.
''The supreme court of the United
states has declared, and has never been
shaken or weakened in maintaining:
First, that insurance is not commerce.
and second, that congress cannot i'm
pair the police powers of the states"
The advocates of federal regulation
concede, according to the report, that
insurance is not commerce
Inc report SelS article l. OF the
constitution as comforting the only
power possessed by congress to regu-
late commerce.
THE question as to whether or not
insurance is commerce has passed be-
yOnd the realm of argument Mr. Jen-
kins says, because the supreme court
of the United States has said many
times for great number of years that
insurance is not commerce"
DirefuI Results Would Follow.
The reports predicts direful results if
congress takes a hand in the matter
Mr.. Jenkins says:
1T is useless to live in hopes that
the supreme court of the United States
will reverse it's finding, but assuming
that congress declares that insurance
is commerce and the supreme court
holds the legislation constitutional
how much could congress regulate, and
what effect would such legislation
have? It would disturb the very sub
structure Of government by precipitat-
ing a violent conflict between the police
power of the states and the power of
congress to regulate interstate COM
merce. To uphold the federal power
would be TO extinguish the police power
of the states by the legislation of con-
gress- In other words, congress would
admit corporations into the respective
states ana nave Cne entire regulating
power.
InsuperabIe Difficulties.
The difficulty of administering fed
erai regulations is emphasized as fol-
lows:
What can congress act upon under
it's power to regulate interstate COM
merce2 Congress cannot prevent the
making of a contract Of insurance be-
tween company in New York and
resident of Oregon. After the contract is
made when VIII the power of congress
attach. and to what? The policy and
premium are not merchandise. AS the
power of congress does not attach until
the merchandise is in commercial tran
sit. it could not become active until the
policy and premium start on their jour
ney and would terminate when the
place of designation is reached, and the
duty and power Of congress would be
to protect both in transit, and that is
the limit of congressional power