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. 1 “ | JOHN EDGAR HOOVER a ; > j » DIRECTOR nar. ¢ ; tetet * . NG Gow er Bibision of Inbestigation ae | - al. S. Bepartment of Justice | ecu , Mashington, B. C. cho teate Chest Cae wl. ydl-eg June 6, 1934. ‘| Me. Tere es MEMORANDUM FOR THE DIRECTOR For your information, I wish to advise that the Supreme Court rendered a decision in the cases of Lynch vs United States and Wilner ve United States on May 28, 1934 holding invalid Section 17 of the National Economy Act which provided that "all laws granting or pertaining to yearly renewable term insurance are hereby repealed" because it takes away from the insured the right to sue under the contract, in violation of provisions of the Fifth Amendment, The full effect of this decision on the work of the Division in War Risk Insurance cases can not imnediately be determined, but I have talked with Mr. Beardslee briefly and he tells me that this decision throws the gates open to over 20,000 persons for bringing suit on War Risk Insurance ‘contracts. Mr. Beardslee is conferring today with officials of the Veterans Administration with a view to obtaining figures on cases affected by the decision and he will prepare an estimate so that the Division may be informed —s ap to the amount of extra investigative work this will entail and he will Gy forward same to you inmediately. If it is so desired, I will keep in touch with Mr. Beardslee and see that this estimate is in your hands at the earliest possible time. Respectfully, Ga-l— JL Ss