Word: mccarran
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...only the Government may be able to handle the financial hazards of auto insurance. But how? In 1869, the Supreme Court ruled that "insurance is not commerce," thus exempting it from federal antitrust laws and congressional regulation of interstate commerce. In 1945, after the court had reversed itself, the McCarran-Ferguson Act put all insurance under state supervision. But many Congressmen now believe that the states are flunking the auto-insurance part of their job. A Senate subcommittee has called for a "root and branch" investigation of the entire industry. President Johnson echoed the request in his State...
...years since Congress adopted the anti-Communist McCarran act over a presidential veto, the law's provisions have been systematically chipped away by the Supreme Court. Last week the court filed the act's last remaining fangs almost to the vanishing point...
...vote of 6 to 2, the court rejected as unconstitutional the McCarran provision that any Communist Party member is ipso facto denied the right to work in defense plants. "For almost two centuries our country has taken singular pride in the democratic ideals enshrined in its Constitution," said Chief Justice Earl Warren, who delivered the majority opinion. "It would indeed be ironic if, in the name of national defense, we would sanction the subversion of one of those liberties-the freedom of association-which makes the defense of the nation worthwhile...
...court's verdict upheld self-avowed Communist Eugene Frank Robel's right to work as a machinist for Todd Shipyards Corp. An employee of the Seattle shipyard for more than ten years, Robel was indicted in 1962 under the McCarran act when the Defense Department ruled that the firm was a defense industry. A federal district court freed Robel because the indictment failed to accuse him of being an active Communist with the intent to further the party's subversive aims; the Justice Department appealed the case to the high court...
...today," he said, "should be read to deny Congress the power under narrowly drawn legislation to keep from sensitive positions in defense facilities those who would use their positions to disrupt the nation's production facilities." What the court objected to, he added, was the wording of the McCarran act, which is so vague and broad that it "quite literally establishes guilt by association alone." The Congress undoubtedly will take the hint and pass substitute legislation that will guard against subversives without infringing on their constitutional rights...