Lynn, Robert J.

English

Indiana University Bloomington Maurer School of Law

Indiana Law JournalVolume 35 | Issue 4 Article 12Summer 1960Pension Funds and Economic Power, by Paul P.HarbrechtRobert J. LynnOhio State UniversityFollow this and additional works at: http://www.repository.law.indiana.edu/iljPart of the Labor and Employment Law CommonsThis Book Review is brought to you for free and open access by the LawSchool Journals at Digital Repository @ Maurer Law. It has been acceptedfor inclusion in Indiana Law Journal by an authorized administrator ofDigital Repository @ Maurer Law. For more information, please contactwattn@indiana.edu.Recommended CitationLynn, Robert J. (1960) "Pension Funds and Economic Power, by Paul P. Harbrecht," Indiana Law Journal: Vol. 35: Iss. 4, Article 12.Available at: http://www.repository.law.indiana.edu/ilj/vol35/iss4/12INDIANA LAW JOURNALand pave the way for major crimes, and hence there is no reason to makea distinction in the gradation of the crime as far as techniques of investi-gation are concerned. If we pass criminal laws, we should mean to havethem enforced vigorously; otherwise, let us impose civil penalties so thatall persons can at least know that we do not consider their violation to beso detrimental to society as to require criminal sanctions.True, there is nothing more annoying, if not down right outrageous,than the unjustified intrusion into the privacy of the individual's com-munication to another, and such intrusion can only be justified under thesafeguards traditionally associated with search and seizure. But whilegiving us example after example of how such safeguards have failedto stop unjustified wiretapping, Mr. Dash offers no suggestions for in-creasing the effectiveness of the deterrents against unlawful wiretapping.Perhaps the traditional criminal sanctions ought to be replaced by civilliability, which could be enforced by aggrieved persons who would thennot be dependent upon the prosecutor's office to make the sanctions areality. Here again, Mr. Dash's personal conclusions would have beenof interest.In sum, this survey of the law and practices of wiretapping is a wel-come one indeed, and the material adduced by Mr. Dash should, and nodoubt will, play a significant role in future discussion of the proper bal-ance to be struck between the privacy of the individual on the one hand,and the needs of law enforcement agencies on the other. All persons whosponsored and were connected with the project have made a public con-tribution by so doing.ALFRED AvINStPENSION FUNDS AND EcoNomic POWER. By Paul P. Harbrecht.Twentieth Century Fund. 1959. Pp. 328. $5.00.Father Harbrecht's book on employee benefit funds is the second ofits particular kind to appear within the past decade, but it is by no meansa mere supplement to Dearing's earlier work.' Rather, a definitive treat-ment in its own right, it parallels Dearing in that social and economicaspects of pension fund growth are accorded extensive analysis. In stylet Member of the New York, District of Columbia, Florida, and Supreme Court Bars,former Special Deputy Attorney-General of New York State.1. DEARING, INDUSTRIAL PENSIONS (1954).BOOK REVIEWSand approach it may be contrasted with Hamilton and Bronson's moretraditional text2 published in 1958.In general, Pension Funds and Economic Power recounts the historyof the private pension plan movement,3 sets out in considerable detail thestatus of such plans today,' predicts the place of employee benefit devicesin the economy some years hence,' and presents the author's preferencesregarding modification and development of plans.' Appendices includeThe General Motors Hourly-Rate Employees Pension Plan and a speci-men form of trust agreement. A table of cases and an index concludethe volume.This new book is especially noteworthy for its collation of relevantnon-legal materials not readily available to most lawyers. Father Har-brecht is to be congratulated on his industry and skill in assembling andpresenting information from many sources. The frequent use of statis-tics and tables may discourage some readers, but the organization of textlends itself to profitable examination of non-consecutive chapters and,indeed, to consideration of non-consecutive sections of text within chap-ters. Therefore, the more formidable can to some extent be avoided ordeferred for more leisurely study.The title of the publication indicates its main thesis: pension fundsare growing at a rapid rate. Investment of such funds in common stocksof commercial and industrial corporations invites manipulation of thesecurities market and control of key segments of the economic commun-ity. Such influence and power are within the potential of the aggregateof fiduciaries (principally banks) holding legal title to common stocks.'There is little evidence that the potential is exercised,8 but the existinglegal structure of pension plans permits the threat. Indeed, the duty offiduciaries to act in the interests of the beneficiaries of pension trusts(employees) may ultimately require that the financial community wieldthe inchoate power it holds.Insuring fair dealing with "other people's money" is not a new prob-lem in the United States. Employee benefit funds unquestionably havebeen perverted from time to time. Difficulties with respect to their ap-2. HAMILTON & BRONSON, PENSIONS (1958).3. Chapter 1 (The Advent of the Pension Trusts).4. Chapters 3-7 (What Are the Pension Trusts? Objectives, Theory and Prac-tice; Impact of Government Policies; Beneficiaries in Court; The Anatomy of Control).5. Chapters 2, 8, and 10 (Property in Transition; Pension Trusts in 1970; TheParaproprietal Society).6. Chapter 9 (A Policy for Pension Trusts).7. BERLE, POWER WITHOUT PROPERTY (1959).8. TIROVE, PENSION FUNDS AND EcoNomIC FREEDOM 85 (1959).INDIANA LA W JOURNALpropriate handling exist, but they are not beyond solution. Many of theanxieties expressed by Father Harbrecht will probably prove ill-founded.However, if Pension. Funds and Economic Power does no more thanmake explicit the tenuous nature of the employee's "interest" in manypension plans, publication of the work is justified. Students may rea-sonably differ with the author on his conclusions, predictions, and appre-hensions respecting pension plans. Most would probably agree, however,that making deferred wage payments less vulnerable to diminution or lossand more certain of ultimate enjoyment is a matter of immediate im-portance.Occasional repetitions, as well as lengthy reproductions of illustra-tive material, suggest that a more rigorous editing of text might profit-ably have been indulged; but such minor defects do not detract signifi-cantly from a generally good treatment of a somewhat neglected phenome-non. Pension Funds and Economic Power merits reading both by pro-fessional men working in the pension field and by laymen interested incontinuing change within our society.ROBERT J. LYNNtI Professor of Law, Ohio State University.

Pension Funds and Economic Power, by Paul P. Harbrecht

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Pension Funds and Economic Power, by Paul P. Harbrecht

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Indiana University Bloomington Maurer School of Law