Imperial Valley press., 1938-06-03
News Behind
the News
UndercOUer Fight
Insurance Monopoly

WASHINGTON. - one OF the
most important undercover ilghls
in washington is on the question
whether the Forthcoming investiga-
ton of monopoly will delve into
the affairs of the insurance COM
panieS.
President Roosevelt in his mo-
nopoly message urged that these
companies be looked into, point
ing to their huge investment FUNDS
as possible instruments of economic
power. But Congress hasn't SEEM
ed anxious to start such in m
curry. Senator Joseph G. o.
Mahoney of Wyoming, who has beeh
framing what appears to be more
or less official monopoly investiga-
ton bill, thus far is keeping the
insurance companies outside the
bills scope.
New Dealers. however, are hop
ing. They want to find out Whether
insurance funds are being invested
on the basis of Independent Judg-
ment or are controlled by big New
York banking houses. They want
to know who elects the trustees,
why insurance companies charge
per cent interest on policy loans
and other things. There has never
been any real investigation OF in
surance companies, they say, and
the vast power possessed by those
who control billions of funds for
investment is such as to require
public scrutiny.
Insurance company executives are
busy trying to keep the investiga-
ton away from their door They
have been hopping mad ever since
the President sent his monopoly
message.
Earnest John Hanes, new as
sistant Treasury secretary and Tor
mer SEC commissioner, has not
conceded defeat in his campaign
to conciliate business and the
Roosevelt administration. But most
of his friends are willing to con-
cede it for him.
Very little progress has been
made by Mr.. Hanes since he per-
suaded 16 big business men to sign
a qualified promise Of cooperation
with the governments business re-
covery program. The effect OF that
manifesto was soured almost i'm
mediately when Winnie" Aldrich
of Chase National Bank, one of the
signers. demanded a "breathing
spell" for the rest of Roosevelt's S
term and urged revision of New
Deal reforms.
There were four presidents of
mutual life insurance companies
among the signerS. RooSeveltS Sug-
geStiOn of an insurance company
investigation made them furious.
And lately the administration, after
previous indications that it would
forego loan-grants to municipal
power plants in its new PWA pro-
gram, decided against accepting an
amendment which would forbid such
loan-grants.
The Hanes task was herculean
one in the first place. Neither side
was willing to cooperate except on
its own terms. Then came Senator
Peppers victory in the Florida pri-
IldTHs ILOOSCNClJ DCCll lCCillI
more confident, less conciliatory
ever since.
One of the things tending tc
stiffen Roosevelt's attitude toward
public utilities has been a report
made by Federal Reserve, SEC anC
other experts-indicating that new
money which could possibly be spent
by public utilities for plant expan-
sion in the coming year wouldn't
exceed $500,000,000 and might not
be more than a top limit of $780,
100000 Power plant capacity eX-
ceeds the demand
Either sum isn't to be sneeZed
at. But Roosevelt recalled that
power company magnates had been
promising to spend up to two billion
dollars if they could get free
capital market.
The United States government
is the geratest publisher of busi-
ness information in the world.