The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1906-08-24
CONGRESS AND INSURANCE


Discussing the question of govern
mental control of insurance com
panies the Chicago Chronicle COM
ments on the report of the American
Bar Association, which is given out
in advance. The Chronicle says:
The American Bar Association has
a committee or insurance law. and
this year the committee has submit
ted its report to the public in advnce
of the meeting of the association,
which is set for the Goth OF this
month in st. Paul.
The most striking feature of the
report is the uneQuivocal contention
that national control of the COM
panies is the only sane and equitable
way of dealing with the situations.
The position is boldly taken that
congress has jurisdiction because
the great mass OF insurance business
is interstate. The report denies that
the insurance business is not COM
merce, and analyses the decisions
bearing on the subject for the pur-
pose OF establishing this proposition.
Tie conclusion reached is stated in
these words: 1.-The real opposition
to federal supervision of insurance
does not rest upon the absence of
congressional power. out rather in
the disinclinatIon % exercise it.
That objection is POLITICAL in char
acter and has no solid foundation.'
This opinion differs radically from
that of the judiciary committees of
the two houses OF congress, i'm which
there was general Concurrence by
memers of both parties.
The American Bar association
includes in its membership a good
many able and distinguished law
yers, and the members of the in
snrance law committee may be
among them. But probably the
people will have rather more conli-
dence in the concurring opinion of
the two Judiciary committees of con-
on a question Of constitutional
law and OF the effect. of decisions
that have been rendered by the
supreme court Of the United States.
The same may be found to be true
as to the bar association.
Tie committee holds that there is
great need Of better state legislation,
and five OF its seven recommends
LiOns relate TO this subject, but its
two recommendations respecting
legislation by congress may be ex-
pected to call forth the most criti-
cism.
These are, first. the passage of a
law %forbidding the use OF the mails
to those conducting any kind Of
insurance business who are not
licensed to transact such business by
the states where they are domiciled
or under whose laws they claim
authority to transact it, and, second
~, the passage of a law providing for
the super vision of interstate trans
actions in insurance.
The members OF the committee are
Ralph W. Breckenridge. Of Omaha,
Burton Smith, Of Atlanta, Ga.
Rodney a.. Mercur, OF Towanda,
Pa; W. II. Vance. of Washington
and Alfred Hemenway, of Boston.
OF these Mr.. Vance dlssented as to
congressional action on constitutions
al grounds and Mr.. L1einenWay took
no part i'm the work OF the COM
mittee
This statement may enable some
people to fo1m a judgment as to the
comparative weight of the opinion
OF this committee and that of the
two congressional committees. The
gentlemen OF the former who concur
in tue opinion may be very able
lawyers, bul their names are not so
familiar TO the public as are those of
the congressional committeeman.
E