MEETING WITH MR. FREDERICK J. LAWTON, PRESIDENT OF WAEPA.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A001200040050-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: January 17, 2002
• Sequence Number: 50
• Publication Date: August 4, 1954
• Content Type: MFR

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4 August 1954
SUBJECT: Meeting with Mr. Frederick J. Lawton, President of WAEPA.
1. On 2 August 1954 Mr. Harrison 0. Reynolds, Assistant Di-
rector for Personnel, Mr. Personal Claims Branch,
Office of Personnel, and net with Mr. Frederick J. Lawton, Presi-
dent of WAEPA, to discuss the new insurance contract which CIA has
entered into with Mutual of Omaha and its effect on our relations
with WAEPA. We explained to Mr. Lawton that we had been looking
around for some time in an effort to obtain a better life insurance
contract than that which we had with WAEPA and that we had just en-
tered into a contract with Mutual of Omaha which we thought would be
much more advantageous to our employees. I outlined the advantages
briefly and told Mr. Lawton that we had been in contact with Mr.
Beebe, General Manager of WAEPA, in an attempt to obtain a better
contract with WABPA and that while Mr. Beebe had not answered a let-
ter which we had sent to him on this subject he had telephoned and
had, in effect,, told us that WAEPA could offer us no additional ben-
efits.
2. After some discussion Mr. Lawton indicated that WAEPA was
created during the war to fill a gap and that it was never intended
that it perpetuate itself. He explained that WAEPA was not inter-
ested in becoming competitive with other insurance organizations in
any way and that the Directors were giving some thought to possible
liquidation if and when the Government's insurance program was en-
acted. In.conclusion, he said that he-thought we would be much bet-
ter off with the kind of arrangement we told him we would have with
Mutual of Omaha.
3. We also discussed the possibility of paying dividends to
WAEPA shareholders and in this connection pointed out that we had
noted the surplus was now something more than 01,000,000, which seem-
ed excessive. We also indicated that CIA employees had contributed
a great deal to this surplus and that, in fact, during the last
three years had contributed at least $400,000. Mr. Lawton said that
the Directors were aware of the steady growth of the WAEPA surplus
and that some of them were concerned about it but that it had been
25X1A9A
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 Approved For Release 2002/02/12 : CIA-RDP78-04718AO01200040050-1
t I UENTIAL
the policy of WAEPA to give additional benefits to members in lieu of
actual cash dividends. He said that present policies were designed
to insure that the surplus did not grow any more but readily admitted
that it was larger than he would like to see it.
u. Finally I stated that we hoped the Directors would give
some consideration to a cash dividend inasmuch CIA employees had done
a great deal to build up the WAEPA surplus and we felt it only fair
that they should have some reimbursement, Mr. Lawton indicated that
he was sympathetic to this and that he would take it up at the next
meeting of the Directors which would be in either September or October.
Deputy Director
(Administration)
cc: Mr, Reynolds
Mr.~ 25X1A9a
Mr. Kirkpatrick,, IG
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