Evening star., 1943-03-19
Business Logic Applied
To Governmental Utopianism.

To the Editor of The Star
II I am sick. I call doctor, because
his background of long years Of study
and his experience indicate to me that
he is the best bet to take care Of the
situation.
II I am in need Of legal advice, I go
to lawyer of outstanding reputation
in his field; or should a tooth trouble
me. dentist is the fellow want to see.
Before I become too excited over the
cradle-to grave security plan OF the
National Resources Planning Board,
therefore, and before their plan is en-
titled to even a passing glance on the
part of Congress. 1t might be we'll to
have them establish by what right and
privilege they are qualified to draw up
such an impracticable and unwieldy
scheme
The people in America who are best
qualified by experience to draw up such
plan are the far-seeing executives in
the insurance business. That their
stewardship is outstanding was proven
by most critical TNEC report which
stated that through the last depression
the insurance companies we're the only
big business to show a profit to them
selves and their policyholders while sub
stantially adding to their capital assets
When some banks failed and others de-
clared moratorium behind closed doors
the insurance companies paid out dollars
as dollars became due.
Contrast their marvellous and efficient
record, If you will, with the New Deals
entrance into the insurance business
under the guise OF social security,
Money paid into the Treasury for death
benefits and old age security was quickly
paid right out to WPA, CCC, direct
relief and for Government operationel
expenses. IOUs were deposited to
supplant the cash. There should be
quite a reserve accumulated in that
social security fund, for in 1912 it was
credited with some $56, ,00O, 900 in inter-
est. The funny part about that is
simply that not one penny of it was
earned, for after six years of social Sc
curlty collections there is a deficit Of
billions Of dollars. That is whv there
was recent talk about an increase ia
per cent In the social security tax.
You pay it in once, and then YOU turn
around and pay it in all over again.
How much money would you paw into
an insurance company that spent 1t all
and then taxed you double when paw
time came to hand? Doesn't look like
good business, does it?
In view OF these far-reaching plans
OF the National Resources and Planning
Board we can safely presume. then,
that each member OF the board has had
long experience and established an en-
vlable reputation in the life insurance
field, the disability insurance field and
the retirement income field Each per-
sonally Is model of economic security
and he will not suffer from lack of
dollars in old age, nor would long time
disability disturb his family's future
method OF living. We have every right to
expect that of each board member, Just
AS surely as the lawyer and doctor must
have certain degrees and pass certain
examinations to work at their profess
sons. They must qualify! I challenge
the boards members to qualify, by ex-
hibitng outstanding regulations in the
insurance world and by the Jobs they
have done for themselves, individually.
One more thing and I'm through.
What Is this new partnership with bust