492 



that the regulation of insurance is not contemplated by the 

 British North America Act establishing the Dominion, 

 which decision it is said "has thrown things into chaos in 

 the Dominion, so far as the assertion or exercise of authority 

 on the part of the Dominion over insurance matters through- 



RegardiiKj American and Canadian Lctjal Decisions. — 

 Now, in the United States the several States are indepen- 

 dent of the Federal Government in legislation, although 

 State legislation may be set aside by the Courts if held to 

 be untenable. In Australia, State rights are the keystone 

 of the Federal scheme, thus following the example in certain 

 limited respects of the United States. In Canada the 

 Federal Government has the right of vetoing Provincial 

 legislation. In that Dominion the practice has grown up 

 of insurance companies taking out Domiuion charters? 

 which practice has the effect of bringing the companies 

 directly under the supervision of the Dominion, since its 

 Parliament can obviously claim to regulate the institutions 

 which it has itself created and chartered. But as has been 

 well pointed out, "The precise effect of a Dominion charter 

 has perhaps not yet been adjudicated, especially with regard 

 to whether or not it gives the right to do business through- 

 out Canada, even against the provisions of the laws of a 

 particular province. It has scarcely been an open question 

 from the very beginning that a particular province may 

 charter its own companies and permit them to do business 

 without regard to Dominion statutes; nor even that a 

 province may permit a company from another province or 

 even from another country to do business, even though the 

 same be not licensed under the Dominion regulations." 1 



Mr. Justice Leet in the case just referred to, held that 

 tlie subject is relegated to the provinces, which alone have 



1 Vide "The Chronicle." New York, 3rd March, 1910. 



