
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, April 8, 1995                   TAG: 9504100037
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-2   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

SENATOR QUESTIONS AARP'S FINANCIAL TIES

Republican Sen. Alan Simpson is investigating the nation's largest and most powerful seniors organization, the American Association of Retired Persons, and its web of business interests.

Simpson, speaking Friday at a hearing of a Senate Finance subcommittee on Social Security, said he and his staff are examining the AARP's books, financial interests including a mail-order pharmacy, and hiring practices.

Later, in an interview, the Wyoming lawmaker said he was also looking into the group's receipt of federal grants, which he said total about $100 million a year.

AARP said the total actually was closer to $86 million. John Rother, the group's legislative director, said AARP's books are open and it has nothing to hide from Simpson. Rother said AARP has offered to meet with Simpson to ``clear up any confusion,'' but that the senator has declined the invitation.

``They're a huge cash-flow operation,'' Simpson said, describing AARP as ``33 million people paying $8 dues, bound together by a common love of airline discounts and automobile discounts and pharmacy discounts, and they haven't the slightest idea what the organization is asking for.''

AARP is one of the most influential lobbies in Washington, representing Americans age 50 and older. Few politicians are willing to cross its path.

Simpson said he is trying to determine the cash flow of nine AARP ``businesses'' and the group's cut on sales of various products.

by CNB