The Birmingham age-herald., 1906-03-22
INSURANCE NOT
 UNDER CONTROL
Federal Government Has No
 Constitutional Power
COMMITTEE MAKES REPORT
Congress Has No Authority Over h. surance or Other State Corpora tions Other Than Railroads,
 According to Decision.

4NNOioiiiJ " ONSlolOiH
 Washington, March 21.-That there fig no constitutional authority for federal control of insurance or other state cot- porations other than railroads is to be the conclusion reported to the House by the judiciary committee. The report has been drafted by Chairman Jenkins of the committee and is now in the hands of members of the committee for their peru sal. An official poll of the members of the committee indicates that with practi- cally no exceptions they concur in the correctness of this conclusion The re- port of Mr. Jenkins may therefore be taken as the basis of the answer the com mittee Is to make to the House in com pliancc with the instructions of that body.
 "The report collates all of the impor tant court decisions on the questions in- volved, treats each exhaustively and re. duces the whole problem to these two principles:
 "The supreme court of the United States has declared and has never been shaken or weakened in maintaining,
 T. That insurance is not commerce, and second. that Congress cannot impair the pOlitc powers or the SIdies.
 As to the latter principle Mir. Jenkins says
 Cannot Take Away Power
 Let it be said kindly and not offensive ly that 1t is a monstrous doctrine sub verslve of our dual system of government to even suggest after distribution of these great powers between the federal government and the states. hat the fed- eral government. created by the states. can take from the states the power they have always enjoyed, and expressly re- served to them by the constitution, ex clusively in the states. Hamilton him self never made such claim
 The advocates of federal regulation concede, according to the report, that in- surance is not commerce.
 Answering the arguments that the su- prame court would reverse itself if tn } question were again presented. MT Jenk- ns says:
 "If this be correct then there is no necessity for any action by Congress. The question can again be presented to the supreme court as it has been many times in the past"
 The report sets forth section of ar tiele 1 of the constitution as conferring the only power possessed by Congress to regulate commerce.
 "Commerce," Mir. Jenkins says, lis more than traffic. It includes navigation, in- tercourse, transportation of passengers, interchange and transportation of com modies. or visible and tangible things, transmission by telegraph, electrically transmitting of articulate speech by tele- phone"
 Insurance" says Mir. Jenkins, was well known long before the constitution was adopted and insurance companies were in active operation in this country long before the adoption of the consti- tution and ever since the adoption of the constitution has not been recognized as an article of commerce."
 Dreful Results Predicted.
 The report predicts direful results if Congress takes hand in the matter. MT. Jenkins says:
 Assuming that Congress declares that insurance Is commerce. and the supreme court holds the legislation constitutional, how much could Congress legislate. and what effect would such legislation have? It would disturb the very substructure of government by preelpitating violent con flict between the police power for the states and the power of Congress to reg ulate interstate commerce. In other words Congress would admit corporations into the respective states and have the entire regulating power. corporation created by the laws of the state of New York is denied admission into any other state. There is no present indication that Con gress has invaded the state of New York and regulated that corporation in Its busl- ness. The power of the state Is exclusive and the corporation would be beyond the regulating power of Congress, even if Congress declared insurance to be com merce. and the supreme court held the act unconstitutional.
 "The auXOCateS Of federal SunprNiSiOn admit and concede that 1t is entirely op- tonal with the states to admit or ex- elude insurance corporations. Hence it follows that the state has entire power to regulate. The business can be carried out without commercial transit, and 1t Is only during commercial transit that freight power can be exercised.
 "The only thing in commercial transit would be money shipped from time to time, and this would not give Congress any control over the corporation or it's business"
 The difficulty of administering federal regulations is emphasized as follows:
 Must Convict Policy Holders.
 "What can Congress act upon under its power to regulate interstate commerce.? Congress cannot prevent the making of contract of insurance between a com papy in New York and a resident of Oregon. After the contract is made, when will the power of Congress attach, and to what? The policy and premium are not merchandise. If the power of Congress does not attach until the merchandise is in commercial transit. 1t could not be- come active until the policy and premium start on their journey, and would ter minate when the place of designation Is reached, and the duty and power of Con gress would be to protect both in transit, and that is the limit of Congressional power. This act of transportation does not enable the federal power to reach the corporations. and as the federal pow CT would not know when or how the policy or premium were to be transport ed, and as it cannot annul the contract 1t would have to be made criminal of fense and an American citizen would have to be made a criminal offense and an American citizen would have to be con victed of crime for making provision for his family
 Will Get Death Sentence.
 COrdele Ga March o1 The iury in