Hon. ARTHUR CAPPER,

GOVERNMENT OF THE DISTRICT OF COLUMBIA,
DEPARTMENT OF INSURANCE,

Chairman Committee on the District of Columbia,

March 2, 1932.

United States Senate, Washington, D. C.

Subject: S. 3584, Seventy-second Congress, first session.

DEAR SENATOR CAPPER: Complying with your oral request made on February 23, 1932, at the hearing before your committee, that I address you directly respecting the subject matter of the above mentioned bill, permit me to report as follows:

At the said hearing, after full discussion, it developed that there was no objection interposed by any insurance corporation or association respecting the meritorious provisions of the aforesaid proposed enactment. However, questions were raised by a member of your committee whether or not the scope of the proposed enactment was too broad, having especially in mind the requirement that all of the corporation books, etc., shall be kept within the District of Columbia. (See p. 2, line 4 of said bill.)

Manifestly, it is not desired or intended to work a hardship on any insurance corporation. After careful study and consideration of each and every phase of the proposed enactment, it seems wise and judicious that the bill should be amended as follows:

Page 2, line 4 of said bill, strike out the words "all of".

On page 2, line 8 of said bill, immediately following the word "obtained", insert a colon, and add the following:

"Provided, however, That nothing herein contained shall be construed to apply to the books, records and files of any such corporation kept in a branch office agency of such corporation, which books, records and files relate solely to the business transacted by said branch office agency.'

A copy of said Senate bill 3584, Seventy-second Congress, first session, is returned herein with the amendments indicated thereon.

With the increased duties and responsibilities intrusted to this department, it is highly desirable that the time and efforts of this department in maintaining the highest efficiency be not diverted in journeying to other cities with the view of obtaining dependable financial and other data pertaining to insurance corporations organized and existing under the laws of the District of Columbia. The books and records of such corporations, other than branch-agency records, should, at all times, be available at Washington, D. C., to the superintendent of insurance of the District of Columbia, in order that he may be in position to make prompt investigations and reports.

The effect of the proposed legislation is to enable the superintendent of insurance of the District of Columbia to obtain complete data, with the minimum expenditure of time and money. Furthermore, it is believed that the enactment into law of the aforesaid bill would have a salutary effect in abundantly protecting the interests of policyholders and certificate holders of said corporations. Frequently, time is of the essence in separating facts from fiction in the matter of investment of insurance funds and kindred matters.

MARCH 2 (calendar day, MARCH 8), 1932.-Ordered to be printed

Mr. McNARY, from the Committee on Agriculture and Forestry, submitted the following

REPORT

[To accompany S. J. Res. 7]

The Committee on Agriculture and Forestry, to whom was referred the bill (S. J. Res. 7) providing for the amendment of the acts of February 2, 1903, and March 3, 1905, as amended, to allow the States. to quarantine against the shipment thereto, therein, or through of livestock, including poultry, from a State or Territory or portion thereof where a livestock or poultry disease is found to exist, which is not covered by regulatory action of the Department of Agriculture, and for other purposes, having considered the legislation report favorably thereon with the recommendation that it do pass with the following amendments:

On page 2, line 10, and on page 3, line 15, strike out the words "or through".

The Department of Agriculture recommends the passage of the bill in the amended form and letter to that effect from the Secretary of Agriculture follows. Twice, similar legislation has passed the Senate.

Hon. CHARLES L. MCNARY,

Chairman Committee on Agriculture and Forestry,

JANUARY 23, 1932.

United States Senate.

DEAR SENATOR MCNARY: Receipt is acknowledged of your letter of December 15, 1931, transmitting, for consideration and report, a copy of Senate Joint Resolution No. 7, for the amendment of the acts of February 2, 1903, and March 3, 1905, as amended.

This department has for some time been convinced that the States should be permitted to protect themselves against the introduction of dangerous livestock and poultry diseases through the promulgation of appropriate quarantine regulations, in the absence of a Federal regulatory action covering the same subject matter, but it is believed that this can not be done, particularly in view of the decision of May 14, 1928, in the United States Circuit Court of Appeals for the Ninth Circuit in the case of Must Hatch Incubator Co. v. Paterson

et al. (27 Fed. Rep. 2d Series, 447), in which it was held that Congress had, by the acts of February 2, 1903 (32 Stat. 791), and March 3, 1905 (33 Stat. 1264), as amended by the act of February 7, 1928 (45 Stat. 59), giving the Department of Agriculture supervision of the interstate movement of poultry for the purpose of preventing the spread of dangerous diseases thereof, and that the States are not authorized so to act for their protection against such diseases, even as to such as are not covered by regulatory action of the Secretary of Agriculture. To offset the effect of the decision above referred to in a way similar to that by which Congress met the situation caused by the decision of the Supreme Court in the Oregon-Washington Railroad & Navigation Co. case (270 U. S. 87), by its joint resolution of April 13, 1926 (44 Stat. 250), amending section 8 of the plant quarantine act of August 20, 1912, the passage of a resolution similar to Senate Joint Resolution No. 7 has been urged by some of the State authorities. It is recommended that Senate Joint Resolution No. 7 be amended by the elimination of the words "or through" in line 10, page 2, and in line 15, page 3, and that, as so amended, it receive favorable consideration.

If enacted into law, it is believed this resolution will give the States authority to promulgate quarantine measures which will protect them against the entrance of dangerous diseases of livestock, including poultry, from any State, or portion thereof, where such diseases may be found to exist.

Sincerely yours,

MARCH 2 (calendar day, MARCH 8), 1932.-Ordered to be printed

Mr. McNARY, from the Committee on Agriculture and Forestry, submitted the following

REPORT

[To accompany 8. 2290]

The Committee on Agriculture and Forestry, to whom was referred the bill (S. 2290) providing for the conservation of rainfall in the United States, having considered the same, report thereon with the recommendation that the bill do pass.

During the last Congress a similar bill was reported favorably by the committee and passed the Senate. It provides simply for a study and investigation by the Secretary of Agriculture of the control of rainfall to prevent erosion and conservation of soil fertility and general practical conservation and utilization of rainfall.