Windham County reformer. (Brattleboro, Vt.) 1901-1906, 1906-01-05
fAvORS STATE CONTROL
CONGRESSMAN HAsKiNs ON FED
eRAL INSURANCE SUPERVISION.
His Speech in the House at Washing
ton, Dec. 20-Believes Congress Has
No Constitutional Authority to Leg
jslate on Insurance.

''''"'H ,,t A.,
Congressman kittredso iiaSN'"' :"
the house at Washington Wednesday
on rba roaaral Suneryision Of
Dec ~ On '"e
Insurance:
Mr.. Chairman, the discussion when
the resolution now pending Deiofe thc
committee has evoked seems 10 huVc
taken very wide range, put =" .no
brief time ! shall occupy silai eon
fine my remarks To the question: VI
the proposed federal SUPERVISION OF IN
surance The question as 10 Whe.ner
insurance life. fire, or marine. can pe
brought within federal eohtrol 10 no
to be determined upon the amour. VI
insurance that has been written ny INV
state. upon the application OF ci,iN.hS
OF another state; nor Is u 10 pe ue
termined upon the basis OF the honesty
or the dishonesty of the officers ana
agents of the companies something anu
engaged In the business OF insurance,
but for the reason, and that only, tnat
the constitution of the United States
has conferred upon congress the DOW
er to regulate and control the pusl.
ness OF insurance. No one claims that
federal control can be exercised over
insurance companies that do business
only within the state where located
under the terms of their charter; the
action must be tustifed. u az AT upoh
the ground that they do business IN
other states. and therefore. by rea-
son of its interstate character IL comes
within the provision of the consutn-
ton with reference to Interstate com
merce. As vet no one on the noor
of this house has advanced con-
yincing argument nor cited any au-
thority to demonstrate such PROPOSE
ton to be true, nor mas the preslue.t
done that in his message. lie SlhpS
advises action In that direction. sub
iect always. of course, To consutu-
tional limitations.
do not think | mlsrepreseht the
position of laymen in general wheh
say that they are very apt to con-
strue the constitution ana the Jaw 10
be such as they severally would IKE
TO have It, while the lawyer, Wnelher
sitting as a court or as legislator. u.s.
or at least should be, governed IN ms
construction by the evident intention
of the trainers of the constitution.
well established Drecedents, ana the
decisions of the courts.
Insurance rests in CONTRACT between
the parties thereto. The life insur-
ance company. upon the application OF
the assured and the performance OF
certain conditions on MS or ner part
promises to pay upon the happening
of an event a certain sum OF money 10
the assured or TO the benenciarles
named in the policy or contract.
The fire and marine insurance COM
panies. in case of loss by IRE or water
or other casualties, agree to pay a
sum of money to the assured etc; ana
although the parties TO the contract
may reside in different states. inVolV-
ing q sort of commercial intercourse
between two or more states IN the
regular transaction of their business.
il is a bold lawyer who VIII contend
that these contracts of insurance are
merchandise or commodities or trans
portation that come within the pro-
vision of the interstate commerce.
clause of the constitution.
II il be true that such transactions
constitute interstate commerce whlch
congress may regulate. what may not
congress do In this direction? The saw
ings banks of the country. and espec-
tally those of that section from which
| come. hold In trust millions OF
money the property 10 n very large
extent of laboring men and women ana
of widows and orphan children. MIL
lions upon millions of this money mas
been and constantly is being Invested
In real estate mortgage securities IN
many of the other states by the offl-
GERS of these institutions. These loans.
/ like transactions of Insurance. consti-
tute contracts between parties resid-
| ing in different states. and involve
transportation between the states by
means of the United States mail In
! the transmission of letters. mortgages,
| trust deeds. money, and checks. If the
federal government under the inter-
state commerce clause of the constitu-
ton has the right TO extend its pa
ternal hand for the protection of the
individual in the matter of insurance.
il certainly has the same right in the
matter of the savings banks, The
transactions of both alike rest in con-
I tract and only in contract and does
NOT constitute that kind of commercial
Intercourse that does the sale of mer-
rhandise in one state which to COM
nIete the transaction requires to be
TRANSPORTED into another state. Poll
cies of insurance like the promissory
nnte and mortgage are not articles of
merchandise. but simply the written
EVIDENCE of promise to do something.
Great CORPORATIONS Manufacture
Commodities for sale and delivery into
other states as well as in the state of
their creation. and vet the supreme
CONT of the United States has decided
mat tho affairs OF the corporation can
not he regulated nv congressional en-
actmant but that It is the manufac-
tura5 article only which congress can
interfera with when IL commences its
in,,rnev across state lines. The SUI
rra,no court has solemnly adiudicated
IN several welI-considered cases. cited
~, the chairman Of the committee on
wavs and means. that the writing of
no,;cies or contracts of insurance and
~ do1;,ar,, ~ them 70 narties in an
ny 80 ,nt irtarstata com