INSURANCE: Light Sentence

Ever since the U.S. Supreme Court ruled that the fire-insurance business is subject to federal regulation, the industry has been under sentence—of what, it was not exactly sure. Last week, the Senate clarified the sentence. It passed a bill which would provide the lightest of federal control over the $6 billion business.

The bill was approved by most insurance men as well as by monopoly-hating Senator Joseph C. O’Mahoney who had blocked a previous attempt to fence off the industry from any federal control. The bill would leave regulation of insurance where it is now, in the hands of the states. The Federal Government could step in only for violations of the antitrust laws.

The bill would also suspend prosecution under the Sherman Antitrust Act until June 1, 1947 and the Clayton Act until Jan. 1, 1948. Thus, insurance men would have ample time to change rate practices which, Attorney General Francis Biddle contends, violate these laws. If the bill becomes law, Biddle is expected to drop the criminal antitrust charges against 27 insurance bigwigs which touched off the battle.