PLANS DISCLOSURE ACT

HEARINGS

BEFORE THE

SPECIAL SUBCOMMITTEE ON LABOR

OF THE

COMMITTEE ON EDUCATION AND LABOR
HOUSE OF REPRESENTATIVES

EIGHTY-SEVENTH CONGRESS

FIRST SESSION

ON

H.R. 7234, H.R. 7235, H.R. 7040

AND VARIOUS BILLS REGARDING WELFARE-PENSION
LEGISLATION

HEARINGS HELD IN WASHINGTON, D.C., MAY 24, 25, 26, 31;
JUNE 1, 2, AND 28, 1961

72445

Printed for the use of the Committee on Education and Labor

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1961

DEPOSITED BY THE

*NITED STATES OF AMERICA

CONTENTS

Hearings held in Washington, D.C.:

May 24, 1961..

May 25, 1961.

May 26, 1961.

May 31, 1961.

June 1, 1961.

June 2, 1961.

June 28, 1961.

Text of bills:

H.R. 7234

H.R. 7235.

H.R. 7040

Statement of—

Biemiller, Andrew J., director, Department of Legislation, AFL-CIO,

accompanied by Thomas E. Harris, associate general counsel.

Bird, Robert W., assistant to the president of Oliver Corp., Chicago,
and chairman, Labor Relations Committee, Illinois State Chamber
of Commerce_

Carey, James B., secretary-treasurer, Industrial Union Department,

AFL-CIO, president, International Union of Electrical, Radio &

Machine Workers, AFL-CIO.........

Daniels, Wilbur, assistant to the president, International Ladies' Gar-

ment Workers Union, AFL-CIO.......

Donahue, Charles, Solicitor, Department of Labor..

Douglas, Hon. Paul H., a U.S. Senator from the State of Illinois_

Goldberg, Hon. Arthur J., Secretary of Labor, accompanied by Charles

Donahue, Solicitor, and Arthur Motley, Director, Bureau of Labor

Standards, Department of Labor..

Higgins, James J., assistant chief, examination section, Welfare Fund

Bureau, New York Insurance Department...

Howell, Paul L., partner, Paul Howell Associates, New York, N.Y..
Kaplan, Robert, research director, United Mine Workers of America
Welfare and Retirement Fund, accompanied by Val J. Mitch and
T. G. Dudley..

Klint, Walter E., Industrial Relations Department, Continental Can
Co., New York City, representing U.S. Chamber of Commerce;
accompanied by William Barton, general counsel, U.S. Chamber of
Commerce, and Frank X. McNelis, office of the general counsel,
Continental Can Co., New York, N.Y.

Miller, Herbert J., Assistant Attorney General, Department of Justice-

Patterson, Prof. Edward W., professor emeritus, Columbia University-
Reynolds, Hon. James J., Assistant Secretary of Labor, U.S. Depart-
ment of Labor, accompanied by Evan K. Rowe, Assistant Chief for
Program Planning and Norris B. Sacharoff, Assistant Chief for Oper-
ations, Division of Welfare and Pension Reports, Bureau of Labor
Standards; Morton J. Marks, Chief, Branch of Safety Standards
and Benefit Plan Reports Interpretations, Office of the Solicitor,
U.S. Department of Labor..

Roosevelt, John, on behalf of Bache & Co...

Seligman, Joe, National Small Businessmen's Association..

Siegfried, Charles A., vice president, Metropolitan Life Insurance Co.,

on behalf of American Life Convention, Health Insurance Associa-

tion of America, and Life Insurance Association of America..

Zagri, Sidney, legislative counsel, International Brotherhood of Team-

sters, Chauffeurs, Warehousemen & Helpers____

Page

1

47

81

173

191

255

337

159

47

301

157

173

407

337

12

242

414

142

191

255

66

81

218

278

262

224

Letters, statements, supplemental material, etc.:

Bird, Robert W., assistant to the president, Oliver Corp., Chicago, Ill.,

and chairman, Labor Relations Committee, Illinois State Chamber

of Commerce:

Statement before the Special Subcommittee on Welfare and Pen-

sion Legislation of the Senate Committee of Labor and Public

Welfare, June 24, 1957.

Statement of..

Bridges, Harry, president, International Longshoremen's & Ware-

housemen's Union, letter to Chairman Roosevelt.

Bronston, Cecil P., chairman, Committee on Trusts, the American

Bankers Association, letter to Chairman Roosevelt __

Castellucci, John W., executive vice president, National Association

of Blue Shield Plans, letter to Chairman Roosevelt..

Daniels, Wilbur, assistant to the president, International Ladies'

Garment Workers' Union, AFL-CIO, prepared statement of..

David, Alvin M., Assistant Director, Social Security Administration,

Baltimore, Md., letter to Wilson Young enclosing "Analytical Note

No. 109.".

Donahue, Hon. Charles, Solicitor, Department of Labor, statement

of....

Douglas, Hon. Paul H., a U.S. Senator from the State of Illinois:

Exhibit 1.-Security Mutual Life Insurance Co. and Louis B.

Saperstein.

Page

301

325

450

433

431

173

425

407

340

Exhibit 2.-C. J. Simons Corp. of Newark, N.J., general agent

for Continental Assurance Co..

341

Exhibit 3.-Washington National Insurance Co. and Dash &

Love..

344

Exhibit 4.-Harry D. Epstein, and Dash & Love.

348

Exhibit 5.-Eastern Casualty Co. of New York, Cardinal Agency,

Inc., and Alcor Agency, Inc..

360

Exhibit 6.Mutual Benefit & Accident Association and Com-

panion Life Insurance Co..

367

Exhibit 7.-Questionable Commission Practices..

373

Exhibit 8.-Table 18: Transactions of carriers with 10 or more

policies, or with billed premiums of $100,000 or more, by insur-

ance carriers: Policies issued or renewed in 1952 by 70 carriers__

Exhibit 9. The General Motors welfare program_

Exhibit 10.-Case studies..

376

379

383

Exhibit 11.- -XII. Analysis of returns from 65 banks as to pension

plans which they are corporate trustee-

392

Gardner, Esmond B., statement on behalf of the American Bankers

Association -

434

Goldberg, Hon. Arthur J., Secretary of Labor:

Letter to Chairman Roosevelt, enclosing Status Report-May 19,

1961__

42

Letter to Chairman Roosevelt, submitting financial data on wel-

fare and pension plans for 1959-

Statement of..

44

12

Harris, Thomas E., associate general counsel, AFL-CIO, statement

by...

49

Heitler, George, secretary, Blue Cross Association, Inc., letter to
Chairman Roosevelt

429

Howell, Paul L., Paul Howell Associates, letter to Chairman
Roosevelt__

449

Klint, Walter E., representing U.S. Chamber of Commerce, statement

of

192

Lee, Robert C., vice president, Corporate Fiduciaries Association of
Chicago, letter to Chairman Roosevelt.

432

Miller, Herbert J., Assistant Attorney General, Criminal Division,

Department of Justice, proposed amendments..

257

Mitchell, James P., former Secretary of Labor, letter to Chairman

Roosevelt

450

National Association of Manufacturers, statement of

438

Patterson, Prof. Edward W., professor emeritus, Columbia University,

amendments suggested at hearing of May 25, 1961..

77