Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-03-22


eral control of insurance or other state
corporations other than railroads. is 10
be the conclusion reported to the House
of Representatives by the Judiciary
committee. The report has been draft
ell by Chairman Jenkins and is now in
the hands Of members of the committee
for their perusal. An unofficial poll in
dicates that with practically no excep-
lions they con cur in the correctness OF
this conclusion. ...
The report reduces the whole prob
lem to these two principales.
"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 inn
pair the police powers Of the state"
AS to the latter principle, Mr.. Jen-
kins says:
LET it be said kindly and not Of
fensively that it is a monstrous doc
trine, subversive of our dual system OF
government. to even suggest, after the
distribution of these great powers be-
tween the federal government and the
states, that the federal government.
CTedttu ny Lie SthlCo eali tonS IL va e-'>
the power they have always enjoyed
and expressly reserved to them by the
constitution exclusive in the states.
The advocates of federal regulation
concede, according to the report, that
insurance is not commerce.
Answering the argument that the
supreme curt would reverse itself II
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 wiil
be relieved of the charge that the leg
Jislative branch of government is try
ing to coerce the; judicial branch, Of
government and the important cunsti-
tutional question that Congress cannot
impair the police power Of the states
will be removed from the case"
The report sets forth Section of Ar
ticlc ! Of the Constitution as refer
ring the orhy power possessed by Con-
gross to regulate commerce.
INSURANCE" Mr.. Jenkins says. "was
well known long before the Constitu-
ton was adopted, and insurance COM
panies were in active operation in this
country long before the adoption OF
the Constitution and ever since the
ADOPTION % the Constitution il has not
been regarded as an article OF COM
merce."
The report 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 its holding but assuming
that Congress declares that insurance
is commerce and the supreme court
holds :he legislation constitutional.
how much could Congress regulate. and
hat effect would such legislation
have? Il would disturb the very sub-
structure OF government by precipitat-
| ing q violent conflict between the police
| power of the states and the power OF
! Congress to regulate interstate com
merce. To uphold the federal power
wouli be to extinguish the police pow
er of the state by the legislation OF
! Congress. In other words, Congress
would admit corporations into the re-
! spective states and have the entire reg
uiating powers.
| Now the states have the exclusive
power of admission and regulation. If
the states have the exclusive power OF
admission and regulation what Is there
for Congress to regulate? A corporation
created by the laws of the state of New
York is denied admission into any 9TH
er state. There Is no pretense that Con.
| sress can invade the state Of New York
and regulate that corporation in its
business. The power af the state is ex-
elusive and the corporation in its bus
mess. The power Of the state is eXclu-
sive and the corporation would be be-
yond the regulating power of Congress
even IL Congress declared insurance ia
/ be commerce and the supreme court
held the act constitutional. hut as
| Stunning that this same corporation is
admitted into every state in the unior
on satisfactory terms and conditions, II
would be beyond and not within reach
of the regulating power Of Congress.
1.-THE business can be carried on with.
out commercial transit and it is only
during commercial transit federal pow
4 er can be exercised"
The difficulty of administering fed
ersl regulations is emphasized as fol.
| lows:
"WfIat can Congress act upon undel
its power to regulate Interstate com.
merce? Congress cannot prevent thu
milking Of a contract Of insurance be.
tween a company in New York and &
resident of Oregon. After the contrac
is made. when will the power OF Con
gross attach and to what? The policy
| and premium are not merchandise. A.
the power of Congress does not attacl
until the policy and premium start OIL
their Journey and would terminate
4 when the place of destination i
reached and the duty and power o
Congress would be to protect both il
transit and that is the limit of con
eressional power. This act of transpor
tation does not enable the federal pow
. or N reach the corporations and as tn
federal power would not know when o
how the policy or premium were to b
transported and as It cannot annul tn
..-.+ - -