Newsday from New York, New York • 41

mitt iii Pay Panel Tied to Lobbyists Congress COMMISSION from Page 5 I 1 obtainable. In Congress last year, the repeal effort shook the insurance industry, which countered with a massive lobbying campaign and election-year fundraising effort by individual companies, their trade associations and agents from across the United States. Ratchford said Equitable was monitoring the repeal drive as it picks up steam this year. During two of his three terms as a Democrat from Connecticut, Ratchford said he refused to accept pay increases. He donated the money to the University of Connecticut.

I wouldnt accept them because of the economic nature of my district, said Ratchford, noting it included factory workers, the elderly and the unemployed. Asked how he could now recommend a congressional salary of $135,000, Ratchford said: I had a job to do. The insurance industry argues their rates are competitive. But critics charge Insurance Services is a price-fixing organization that undercuts competition. They can fix prices where other industries cannot because of their exemption from federal antitrust laws," said Robert Hunter, a former actuary for Insurance Services.

He now is a member of the National Insurance Consumer Organization, which contends real price competition within the industry would save consumers billions in premium charges because companies would be forced to compete. It would mean a 25-percent reduction in auto insurance premiums alone, Hunter said. The repeal movement in Congress is an outgrowth of the 1985-86 liability insurance crisis when local governments, businesses, YMCAs and other groups found premiums skyrocketing while coverage declined or became un Moynihan Urges Speed In Foley Square Project ance Co. Eagieton did not respond to requests for comment. He was picked by then-Senate Democratic leader Robert Byrd in October, 1988, when the commission was formed.

In addition to those six, Carlisle Hu-melsine, former head of the Williamsburg Foundation, was a member of the board of directors of New York Life Insurance Co. Humelsine died last month. While an active member of the board since 1967, Humelsine was not involved in New York Lifes lobbying activities, a spokesman for the firm said. He was appointed by Rehnquist. Declarations filed with the clerk of the House show that all the firms have registered either individually or with trade associations to form a united lobby against repeal of the 43-year-old exemption that also permits the industry to carve up territories and engage in other operations that are illegal under the federal antitrust laws.

Lloyd Cutler, one of Washingtons most influential lawyer-lobbyists, was chairman during his second stint on the commission. He was picked by Reagan. He contended any qualified person named to the pay-raise panel would have an interest in issues before Congress or the courts. According to Cutler, when blacks, women and labor leaders were members of past commissions they also recommended mqjor increases in the pay of Congress and other federal employees. They stacked it with the upper crust, said Sen.

Charles Grassley (R-Iowa), who opposes the pay raise. Grassley said the commission was created to permit Congress to duck its constitutional but politically dangerous duty to raise its own pay. Its a dodge, a charade," Grassley said. Rep. Don Edwards (D-Calif.) speculated that the insurance industry angled to get its members on the commission.

This wasnt coincidental, said Edwards, who did not provide specifics to back up his charge. This is another example of how corporate power works in Washington. DeConcini of the Senate Judiciary Committee and Edwards of the House Judiciary panel both want to substantially alter the 1945 McCarran-Fergu-son Act that exempts insurance companies from federal antitrust laws. It permits the industry to set advisory rates through its New York-based trade group, the Insurance Services Office. ty of the nation.

But the panel consists of nine wealthy white men from the corporate world who proved so generous that it caused a collective squirm in Congress. The pay hike may be reduced by Congress next week. The extent of insurance industry representation surprised some members of Congress girding for what promises to be an epic battle over legal changes that would alter the way the industry operates in the United States. Interviews last week with lobbyists, spokesmen for insurance companies and congressmen indicate that the fight is well underway. Selection of the commission members was divided among President Ronald Reagan, Chief Justice William Rehnquist and the leaden of Congress.

Members of the commission include: President James Lynn of Aetna Life and Casualty an industry leader in the battle to preserve the antitrust exemption. Lynn, a former official in President Richard Nixons administration and a Washington lobbyist, was selected by Rehnquist. He would not respond to questions on the issue. John Creedon, chief executive officer of Metropolitan Life Insurance Co. Creedon was selected by House Minority Leader Robert Michel (R-Ill.) Neither Michel, Creedon nor their spokesmen responded to requests to discuss the issue.

Ratchford, the lawyer-lobbyist. Former Maryland Sen. Charles Mathias, a member of Aetnas Washington law firm, Jones, Day, Reavis Pogue. Mathias said his does not personally lobby on insurance issues but said that his firm does. Jones, Day also represents Metropolitan.

Senate Republican leader Bob Dole picked Mathias for his integrity and judgment, a spokesman said. The last thing he had on his mind was the insurance industry, said Walt Riker, a Dole aide. Preston Tisch, head of an investment company that controls the CNA Inc. insurance empire. Tisch is also a member of the CNA board.

A spokesman for CNA and Tisch declined to comment. Former Missouri Sen. Thomas Eagieton, a member of Thompson Mitchell, which is lobbying in Washington in behalf of the Crown Life Insur By Jack Sirica Newsday Washington Bureau Washington Sen. Daniel Patrick Moynihan Friday chided federal and New York City officials for mounting delays in a huge courthouse complex planned for Foley Square in lower Manhattan. The city and the federal General Services Administration agreed in March to a deal in which the city would exchange two large parcels of land for a 30-year lease on about 400,000 square feet of office space inside one of two federal buildings to be built at the proposed complex.

A deadline for submission of design proposals, however, passed early last month, and Moynihan wondered aloud Friday whether a developer, which has not yet been chosen, will come to terms with city and federal officials over design and other issues before a scheduled groundbreaking in November. A years gone by and nothings happened, Moynihan, chairman of the Senate subcommittee on Water Resources, Transportation and Infrastructure, said during a hearing yesterdayf It is too soon for alarm, he said, but not for concern." The two new buildings would provide 1.6-million square feet of space for federal courts and other federal and city offices, whose rent quarters are becoming increasingly cramped. The project is a very complicated project, Deputy Mayor Robert Esnard said in defense of the delays. Esnard also said at the hearing that continuing negotiations with potential developers were important because, with public construction, most of the problems come from when you dont do the up-front investigation. Tower Probe Reveals Slack Geneva Security TOWER from Page 15 strongly that Moser be denied security clearances in the future," a 1987 Air Force document said.

The State Department security officer noted in the document that Moser had solicited a large number of written endorsements from several ambassadors involved in the Geneva talks and from other high-ranking officials. One or two of these individuals had initially made statements damaging to Moser, but later on revised their statements to fully support Mosers character, actions and loyalty, the document said. It added: Indahl said he had information to suggest that Moser had assisted and accommodated several of these individuals in personal and professional matters, and their support for Moser may have been influenced by the assistance he had given them in the past, some of which bordered on improper conduct. Indahl did not elaborate or identify the individuals to whom he referred. He is now stationed in Africa and could not be reached yesterday for comment on the disclosures.

Soon after Bush nominated Tower in December, New York Newsday interviewed Moser about the nominee. Tower probably did the best job of anyone" on the Geneva delegation, Moser said in the December interview. He had absolutely total command of the substance. He worked well with the Soviets. He had an aura of command presence.

He was gracious, personable." When asked in December about reports of indiscretions by Tower, Moser replied: I have never heard one story of that nature; Im not aware of any indiscretions. The man has the utmost discretion; impeccable credentials. In September, 1987, after Moser had retired from the Air Force and joined a private consulting firm, he sought a Department of Energy security clearance, according to the documents. When interviewed by Energy Department investigators, one document said, he was asked if he had ever had information of a persona or sensitive nature concerning the Am be ambassadors or other members of the delegation which he then used as leverage to elicit favorable comments he stated, No way I dont have to blackmail anybody man and added: On the face of it, I do not believe that the allegations against Colonel Moser are warranted. I regard his service as outstanding and his devotion to his country and his personal patriotism to be above reproach.

Tower wrote that beginning in January, 1985, when then-President Ronald Reagan named him as the U.S. negotiator for the stratetic arms reduction talks (START) in Geneva, he found Moser to be an instrumental factor in planning, organizing and preparing for negotiations with the Soviets. Moser also received glowing letters of support from Tower's deputy, from two other principal U.S. negotiators Max Kampelman and Maynard Glitman and from Air Force Mqj. Gen.

Donald Aldridge, who was representing the Joint Chiefs of StafT at START. The letters of support are in sharp contrast to a statement made to Air Force investigators by Berne Indahl, a State Department security officer assigned to the Arms Control and Disarmament Agency. Indahl said he considered Moser to be a definite security risk and would recommend meat 5 I sible espionage indicators. No information directly substantiating any espionage activity was uncovered, the summary of the Air Force investigation said, but investigators substantiated a number of security violations ly Moser. Moser admitted having an adulterous sexual relationship with a foreign national female, but stated his conduct was in comformance with standards practiced by many other delegation members, including military officers, the document said.

Elsewhere in the files was a 34-page statement from Moser in which he alleged there were 14 cases of Geneva-based military officers, intelligence or diplomatic officials who had liaisons of this sort The files do not indicate whether his charges were proven true. Mosers statement did not mention Tower or any other high-ranking negotiators by name. It was dated April 1, 1986, six days after Tower, in a to whom it may concern memo, called Moser a dedicated, hard-working i i i i I 2.