The Lee County journal. (Leesburg, Ga.) 1904-19??, 1906-03-30
CONGRESS IS POWERLESS.
To Inaugurate Federal Central of Cor.
pOratiOnS Says Report Of House Ju-
dietary Committee.


A Washington special says: Taking
sharp issue with President Roosevelt,
the house committee on judiciary de-
clares it cannot follow his recommen.
dations that congress provide for fed.
eral control of great corporations and,
if possible, for the control of life in
surance us Interstate commerce.
Coming as does it's report from the
republican majority of the committee
on judiciary, this report has all the
essentials of a reputation by leading
members of his party in congress Of
these features OF President Roose-
yelts message.
The report in question denies the
right Of the federal government to
take away from the states their police
powers, expressing it's dissent in
strong language.
Let it be said kindly, but not Of
fensively,' is the language of the re-
port, that it is a monstrous doc
trine, subversiye OF our dual system
Of government, to even suggest, after
the distribution of these great powers
between the federal government and
the states. that the federal govern
ment created by the states can take
from the states the power they have
always enjoyed and which is expressly
reserved to them by the constitution.
Hamilton himself never made such
a claim"
The report has been drafted by
Chairman jenkins of the committee
and is now in the hands of the mem
bers Of the committee for their pc
rlsal. An unofficial poll of the mem
bers Of the committee indicates that
with practically no exceptions they
concur in the correctness Of this con-
clnsi0n. The report of Mr.. Jenkins
may, therefore, be taken as the basis
OF the answer the committee is to
make to the house in compliance with
the instructions of that body.
The report collates all of the i'm
portant court decisions on the que5-
tions involved, treats each exhaustive
ly and reduces the whole problem to
these two principles.
"The supreme court of the United
States has declared, and has never
been shaken or weakened in main
tanning first, that insurance is not
commerce, and second that congress
cannot impair the police powers Of
the states"
The advocates of federal regulation
concede, according to the report, that
insurance is not commerce.
"The advocates Of federal supervis-
ion admit and concede that it is en-
tirely optional with the states to adj
nit or exclude insurance corporations.
Hence, it follows that the state has
entire power to regulate. The bust
ness can be carried out without com
mercial transit and it is only during
commercial transit that federal power
can be exercised.
The difficulty of administering fed
eral regulations is emphasized as fol-
lows
What can congress act upon under
its power to regulate interstate com
merce? Congress cannot prevent the
making of a contract of insurance be.
tween a company in New York and a
resident of Oregon. After the con-
tract is made, when will the power Of
congress attach, and to what? The
policy and premium are not merchan-
disc. AS the power Of congress does
not attach until the merchandise is
in commercial transit, it could not
become active until the policy and
premium start on their journey and
would terminate when the place Of
designation is reached and the duty
and power Of congress would be to
protect both in transit, and that is
the limit of congressional power"