The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1938-07-29

three men always is In was
Harold Ickes, Secretary Of the
Interior and PWAdministrator.
Harry Hopkins, WPAdminis-
traitor.
Tom Corcoran, the most effec-
tive Brain Truster who ever
came TO the Capital.
These three have become the
Presidents closest advisers. They
are the three whom he can always
depend upon, whose views are al
most identical with his, and who
carry out his orders on vital poll
cies while he is away.
One of them is always on tap in
the summer. Hopkins has been
away on vacation, and with his re-
turn this week, Ickes is going to
Alaska. Corcoran gets away on
occasional week-ends. But one Is
always on deck, available to han
die the Presidents most delicate
and difficult policy-execution.
Insurance Probe
Not many people realize 1t, but
one Of the most important phases
OF the resent monopoly investiga-
ton is going to be the insurance
companies. Furthermore, it will
affect more peole than any other
part of the investigation.
What the Investigators are look
ing into is the fact that the in
surance companies now rival the
federal government in the amount
Of money they have to invest and
the amount they tax the public.
Today insurance has come to be
the equivalent of a tax. In fact,
probably more people pay tribute
to the insurance companies than
pay taxes.
What the investigators are
probing, therefore, Is the fact
that although some 100000
voters can elect those who fix
the taxes and spend the money,
only a handful of about 1000
people elect the directors who
control the huge insurance
funds.
This is partly because most hold
ers OF mutual policies do not know
that they have the right to vote
for their directors. Holders of
policies in non-mutual companies
do not have the right to vote.
The monopoly probers also point
out that the power of this little
group of directors is tremendous.
They can materially influence the
life of the nation. They have
put their policy holders money
heavily into railroads, which is
one reason why the government
hesitates to let the railroads 60
through the wringer.
On the other hand they have
put their money-until very re-
cently-into housing, with the re-
suit that housing has Jagged far
behind despite the recent millions
poured in by the government.
NOTE-The insurance COM
panies now have total assets of
about twenty-five billions, which
puts them second only to the
federal government in spending
power. Seventy-five per cent of
these assets Is controlled by
only eighteen companies. The
total new investment of all in
surance companies IL about $8,-
000.000,000 annually. This is all
new money. The Metropolitan
Life Insurance Co., sometimes
has 70 invest as much as ST.
o00,000,000 a day.
Investment Cream
Another important point which
the monopoly probers are exam
lining Is the characterization of in
vestments. In other words, so
much money has gone into in
surance in recent years, that
money is taken away from the
more venturesome investment
field. This tends to curb the nor
NAL Industrial expansion of the
nation and is one reason for gov
eminent spendig programs.
Also to be probed are: Commits
sions paid to insurance agents,
interest rates charged on loans
(Which continue higher than cur
rent rate), and insurance ac-
turial tables which are about 50
years old. although the longevity
Of life has increased eleven years
in the last half century.
In other words, the investiga-
ton shows insurance comanies still
charging on the basis OF the death
rate fifty years ago, before mod
errf medicine and public health
had added eleven years to the
life OF the average citizen.
NOTE-The insurance investi-
cation Is in charge of Tom Blais-
dell, of the SEC, who will be the
No. ! DOGGY Man of the insur-
ance field before the investigation
is over.
Air Commissioner
When Robert H. Hickey, recent
ly appointed by the President to
the Civil Aeronautics Authority,
OFF THE RECORn