The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-07-10
ATTORNEYS TO
ACT TODAY ON
INSURANCE BID
Watson and Associates to
Learn Fate of Their
Proposal Soon.
FIFTEEN SEEK CONTROL
Millions Are Involved in
Future Operation of
Illinois Life.
BY CHARLES E. CARLL
Times staff Writer

CHICAGO, July 10.-Contronteo
with fifteen proposals for rehabilita-
ton of the defunct Illinois Life In
surance Company, federal court
committee today was to recommend
one of them to Judge James H
WilkerSon.
Among the bids for future con-
troll of the enormous insurance
properties is that of Hugh D. Hart
and associates. These associates
despite his denial, include James E.
Watson, former senator from In
diana.
AS the federal committee pre-
pared to meet here, it was reported
that a decision would be reached
not later than Tuesday. No an
nouncement of the proposal finally
selected will be made until Wilker-
son approves the recommendation
Effort is being made by former
policyholders' group to obtain the
support of 200 employees of the COM
pany in their plea to have the COM
pany remain in Illinois.
Hart Watson Plan Considered
The Hart Watson plan, which
calls for naturalization of the COM
pany, once having assets of $44,-
100000 and carrying insurance
totaling SLIT 100000 for 10000
policyholders, has been considered
along with the others.
The plan, according to expert in
.surance men and attorneys who are
familiar with it, is hazy on several
points that would insure the best
guarantee for policyholders. The
group backing the plan however,
claims that the proposal is an abso-
Lutte guarantee that policyholderS
will be protected, in the long run.
The Hart Watson proposal was
submitted quietly to the commit
tee, with Chicago parties, interested
in the situation since the company
crash nine months ago, unaware
that the proposal had been made.
According to statements of per-
sons involved in the rehabilitation
program, Watson, if the plan is a
success, would be named director
and counsel for the company.
Called Store Front
Others have branded Watson Just
a store front in this thing" while
the third angle is that Watson -
and this is his own statement too
only is appearing as a friend of per-
sons involved.
The series of propositions was
turned over to the committee by
Wilkerson. Members of the group
are Will H. Thompson of Indianap-
oils, Sam T. Swanson of Milwaukee
and Thomas l.. Marshall of Chi
cago.
1t is reported that the commit
tee believes it necessary to reach a
decision as soon as possible, to save
the company from being involved
further in receivership proceedings.
General Abel Davis. chairman of
the board of directors of the Chi
cago Title and Trust Company, is
receiver.
Some Criticism Reused
Criticism has been launched from
various sources against the receiv-
ership, but the general opinion is
that the company has been han
died in good style since the crash.
Assets have shrunk greatly since
the collapse and one R. F. c. loan
of $1,125,OO0 already has been OBJ
tanned.
Under the watson plan, another
R. F.. G. loan of $3,000O00 loan
would be obtained This would be
used to offset the first loan, pay re-
ownership costs, and meet other
debts, it is said
The 100000 loan actually is
more than is needed" promoters
of the plan have admitted. Their
theory is that it would provide a
surplus that eventually could be
used.
The committee is expected to is
sue statement along with the rec
commended proposal This probably
would carry the COURTS recommen-
dations on operation of the com
pany, whether it is decided to select
stock firm bid or align with mu-
tualization.
High Salaries Frowned On
Any attempt to pay high salaries
to executives under the future oper-
ating plan will draw fire. One bid,
that of James S. Kemper, was with
drawn early in the proceedings when
his plan called for salaries of 500, 900
to be paid annually to a few officers.
The situation also calls for solu-
ton of the Illinois Life building dis
poSal. The company owns the build
ing located here and it can be used
for no other purpose than Office
work. This will be one of the reasons
why various organizations will seek
to have the company remain here.
The Illinois Life crash came with
the collapse of the Stevens family
holdings. It is alleged that assets
of the insurance firm were poured
into the building manipulations of
the family.
The drain was such that the COM