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Show Federal Control of the Business in Different States Declared to Be Impossible. CONSTITUTION IS A BAR TO NATIONAL LEGISLATION Supreme Court of the United States Maintains Insurance Is Not Commerce. WASHINGTON'. March 22. That there 1r no constitutional authority for Federal Fed-eral control of Insurance or other State corporations other than railroads will bo tho conclusion reported to tho Houso by the Judiciary committee. Tho report has boon drafted by Chairman Chair-man Jenkins of the committee, and Is now In the hands of members of the com-mltteo com-mltteo for their "perusal. An unoAlchi'l poll of the members Indicates that with pructlcally no exception they concur In the correctness of this conclusion. The report of Mr Jenkins may therefore there-fore be taken aa the basis of the answer the committee Is to make to the House In compliance with the Instructions of that committee. Tho report collates all the Important court decisions on tho matter mat-ter involved, treats each exhaustively and reduces the whole problem to these two principles: "The Supreme Court of tho United States has declared, and has never been shaken or weakened In maintaining, first, tlutt Insurance Is not commeroo; nnd second, that Congress cannot Impair the police powers of the States." Congress Real Powers. The advocates of Federal regulation concede, according to the report, that Insurance In-surance Is not commerce. The report sets forth eltxht articles of the Constitution as conferring the only power possessed b Congress to regulate reg-ulate commerce. "The question as to whether or not insurance in-surance is commcrco has passed beyond the realmR of argument." Mr. Jenkins says, "because tho Supreme Court of the United States has snld many times for a great number of years lhat Insurance Is not commerce " The report predicts direful results If Congrcps takes a hand In the matter. Mr. Jenkins say?- "It is useless to live In hopes that the Supremo Court of- the United States will reverse ltn findings, but assuming that Congress declares that Insurance Is commerce com-merce and the Supreme court holds tho legislation constitutional, how much could Congress regulate, and what elfect would such legislation hnv? "It would disturb the very' substructure substruc-ture of our Government by precipitating a violent conflict between the police power of tho States and tho power of Congress to regulate Interstate commerce. com-merce. To uphold the Federal power would be to extinguish the police power of the States by the legislation of Congress. Con-gress. In other words, Congress would admit corporations Into the respective-States respective-States and have the entire regulating power." The difficulty of administering Federal regulations Is emphasized as follows: Cong-reBS Is Powerless. ""What can Congress act upon undor Its power 1o reculato Interstate commerce? Congress cannot prevent the making of a contract of Insuranco between a company In New Tork and a resident of Oregon. After the contract Is made, when will the the power of Congress attach, and to what? The policy and premium aro not merchandise. As tho power of Congress does not attach until tho merchandise la In commercial transit St could not be-' como active until the policy and premium pre-mium start on tholr Journey, and would terminate when th place of destination Is reached, and the duty and power of Congress would be to protect both in transit, and that Is the limit of congres-elonal congres-elonal power." |