The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-23
congress CANNOT
TOUCH INSURANCE
Federal Control of the Business
in Different States Declared
to Be Impossible.
CONSTITUTION is 4 BAR
TO NATIONAL LEGISLATION
Supreme Court of the United
States Maintains Insurance
Is Not Commerce.

WASHINGTON. March 22,-That there
Is nc constitutional authority for Fed
eral control Of insurance or other State
corporations other than railroads will 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
mittco for their perusal An unofficial
poll OF the members indicates that with
practically no exception they concur In
the correctness OF this conclusion.
The report OF Mr.. Jenkins may there
fore be taken as the basis OF the answer
the committee is TO make to the House
In compliance with the instructions OF
that committee. The report collates all
the important court decisions on the mat
ter involved. treats each exhaustively and
reduces the whole problem 10 these two
principles.
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 impair
the police powers of the States
Congress Real Powers.
The advocates OF Federal regulation
concede. according 10 the report, that in
surance is not commerce.
The report sets forth eight articles
OF the Constitution as comforting the
only power possessed BY Congress TO reg
ulate commerce.
The question as to whether or not in
surance Is commerce mas passed beyond
the realms OF argument Mr Jenkins
says. because the Supreme Court Of the
United States has said many times for
a great number of years that insurance is
not commerce,
The report predicts dircful results "
Congress takes a hand In the matter. Mr.
Jenkins says
Supreme Court OF the United States Will
reverse It's findings. but assuming that
Congress declares that insurance is com
merce and the Supreme court holds the
legislation constitutional how much could
Congress regulate. and what effect would
such legislation have?
1T would disturb the very suhetruc-
ture of our Government by precipitating
violent conflict between the police
power of tho 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
etetes and have the entire regula ting
The difficulty of administering Federal
regulations is emphasized as follows:
Congress Is Powerless.
What can Congress act upon under its
power 10 regulate interstate commerce?
contract OF insurance between a company
In New York and a resident of Oregon
After the contract Is made. when viii the
the power OF Congress attach. and to
merchandise AS the power of Congress
does not attach until the merchandise
Is In commercial transit It could not be-
come active until the policy and pre-
MUM start on their journey. and would
terminate when the place OF destination
is reached, and the duty and power OF
transit and that is tho limit OF congress
sonal power.