Document: 336 U.S. 220 69 S.Ct. 550 93 L.Ed. 632 DANIEL, Atty. Gen. of South Carollna, et al.v.FAMILY SECURITY LIFE INS. CO. al. No. 297. Argued Feb. 2, 1949. Decided 28, On Appeal From the United States District Court for Eastern Carolina. Mr. David W. Robinson, Washington, D.C., appellants. Donald Russell, Spartenburg, S.C., appellees. Justice MURPHY delivered opinion Court. 1 A Carolina statute provides that life insurance companies and their agents may not operate an undertaking business, undertakers serve as companies. Criminal sanctions are provided. Act 787, S.C. Acts 1948, 45 Stat. at Large, p. 1947.1 Respondents brought action before a three-judge in Carolina, seeking injunction forbidding enforcement statute. 28 U.S.C. § 380, now §§ 2281, 2284, U.S.C.A. 2284. The court, one judge dissenting, upheld respondents' contentions statute, applied this case, did provide due process law equal protection laws guaranteed by Fourteenth Amendment to Constitution States. permanent issued, 79 F.Supp. 62, Attorney General has appealed 1253, 2281. 2 respondent company is incorporated licensed do business conforms with comprehensive code regulations established 232, S.C.Acts 1947, 322. other respondents its officers directors. It issues cash benefits ranging from $125 $750. amount outstanding policies had reached total $838,375 May compared nothing February same year. Most company's undertakers. Parties contract contemplate use policy's proceeds pay funeral expenses. 'facility payment' clause might justify payment undertaker insured's funeral. time trial, was only concern selling 'funeral insurance' practice. 3 For many years prohibited merchandise or services. 205, 1929, 36 Large 234; Code 1942, 7984; 65, 350. Possibilities fraud, misunderstanding valuation, comparatively useless character services rendered make readily concede desirability ban. Other states have similar statutes.2 4 lagislature well concluded insurance, although paid cash, carries evils present payable services: beneficiary's tendency deliver agent-undertaker whatever money will buy, whether expensive ceremony consistent needs survivors.3 Considerations which been influential include likelihood overreach on part companies, possibilities monopoly control detailed affidavits introduced court below. 5 legislature alone seeing kind invoking police powers combat them. See provisions N.Y. Insurance Law, Consol.Laws, c. 165(c); Fla.Code, 639.02, F.S.A.; Ga.Code, 56-9920; Page's Ohio Code, 666(1946) (see Robbins v. Hennessey, 86 St. 181, 99 N.E. 319); Md.Code, Art. 48A, 110 (1939). And see summary critical arguments Business Week, October 20, 1945, pp. 48, 51. 6 Yet below held 'arbitrary discriminative designed destroy, plaintiff * it seems obvious record legislation genesis desire existing eliminate competitor. *' pages 70, 68. found respondent's actuarially sound; desirable; 'ample' correct any resulting business. us so unreasonable offends Due Process Clause. 7 First. said 'insurance lobby' obtained legislature. But judiciary must results, varied factors determined legislators' votes. We cannot undertake search motive testing constitutionality. Hammer Dagenhart, 247 251, 38 529, 62 1101, A.L.R. 649, Ann.Cas.1918E, 724, overruled Darby, 312 100, 657, 61 451, 85 609, 132 1430. Compare Bailey Drexel Furniture Co., 259 42 449, 66 817, 21 1432, Constantine, 296 287, 56 223, 80 233, Sunshine Anthracite Coal Co. Adkins, 310 381, 393, 60 907, 912, 84 1263. Butler, 297 1, 312, 477, 102 914, Steward Machine Davis, 301 548, 592, 57 883, 893, 81 1279, 109 1293, Cincinnati Soap States, 308, 764, 1122. 8 Second. Despite evidence contrary, no evil be corrected legislation. asked agree call arbitrary unreasonable. 9 Looking through form plea essential basis, we fail recognize argument invalidity because disagrees rehearse when say t our function thus misconceived. equipped decide desirability; measures happen suit tastes if seeks maintain democratic system. forum correction ill-considered responsive 10 entitled evil. Nor can relation elimination those evils. There inquiry stop.4 11 This rationale find expression Liggett Baldridge, 278 105, 49 57, 73 204, rely. According majority Liggett, 'A state cannot, 'under guise protecting public, arbitrarily interfere private prohibit lawful occupations impose unnecessary restrictions upon them." page 113, 59, 204. pronounced shift emphasis since case deprived words 'unreasonable' 'arbitrary' content contend. Lincoln Federal Labor Union Northwestern Iron & Metal 335 525, 251; where cases reviewed. 12 however, concerned far different considering now. Pennsylvania required drug store owners pharmacists. Because directed owners, who connection pharmaceutical branches modern stores, divided thought measure clearly less adapted recognized than provision us. facts, authority invalidation Mortuary Act. 13 face, does contravene Amendment. Neither offend these respondents.5 reverse judgment 14 Reversed. 'Section 1: Life employees own business.—It shall unlawful company, corporation, association, except fraternal benefit societies State own, manage, supervise, mortuary establishment, permit officers, such 2: sick conduct person insured it.—It corporation association engaged director, effect undertaker, association. 3: Undertaker his act agent company.—It mortuary, agent, officer employee thereof solicitor salesman doing State. 4: Penalties.—Any violating deemed guilty misdemeanor, each violation separate offense, conviction punished fine exceeding One Thousand ($1000.00) Dollars imprisonment hard labor six (6) months, both within discretion courts. 639.04, Me.Rev.Stat. 56, 138 (1944); Ky.Rev.Stat., 303.120 (1946); Ill.Rev Stat., 73, 956 (1947). 'You come place it. Month month out. inducement director align himself fact freeze him. He doesn't to, let me hasten say. You don't but he continuously beats path door there question about decent employees, they going convince man thing Now, healthy situation?' Proceedings Senate Banking Committee, March 31, 1382, In re 'The Bill.' R. 85. Our deference legislative particularly field traditionally regulated insurance. Osborn Ozlin, 53, 66, 758, 762, 763, 1074; La Tourette McMaster, 248 465, 467, 468, 39 160, 161, 63 362; Prudential Benjamin, 328 408, 416, 1142, 1147, 1148, Note 13, 90 1342, 164 476. That affected not, course, mean denial protection. drawn general terms; success induce others enter dissenting below, 74. Mason Missouri, 179 328, 125, 214.

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