The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-07-08

.nator, known to his associates
as "The Hon. James E. Wat
son." in the bid for mutual
ization of the defunct firm
with the aid of an R. F. C.
loan of S3,OOO,O0O have been
kept secret.
In this city, men who have been
interested in reorganization of the
company since its receivership last
fall were not aware that Watson was
involved in the transaction.
He would be, it is said, director
and general counsel for the COM
pany.
The group with which Watson is
associated" is known to Judge
James H. Wilkerson and his COM
mittee of three attorneys, who will
make the recommendation on resur-
rection of the company, as Hugh D.
Hart and associates"
"0sSoA SCSueS
Watson never has appeared be-
fore the committee, named by the
court, and Wilkerson told The Times
that the bid backed by the group
mad not made its appearance until
after open hearings in federal court.
1t is one of fifteen before the COM
mittee.
Although Watson's associates DENY
that there is any attempt to make
money speedily, and that profits on
new business of the company. under
their naturalization plan will be the
only revenue source, expert insur-
ance men Of this city say that with
a III per cent share in the company.
When formed, I'VE never would have
10 worry about the future"
First admission that Hart and
Watson were involved in the at
temptS to gain control of the COM
pany came from General Abel Davis.
chairman of the board of the Chi
cago Title and Trust Company, and
receiver for the insurance firm.
Davis, head of a mammoth COM
pany IN his own right, has been in
charge of the receivership since the
company crashed.
Three Attorneys Named
Several weeks ago, Judge Wilker-
son turned the proposals for re-
haollltation of the company over to
three attorneys-Will H. Thompson.
indianapolis; Thomas L. Marshall.
chicago, and Sam Swanson. insur-
ance attorney of Milwaukee.
The committee has heard oral pre-
sentatlons on each of the fifteen
dds for the company in private
meetings and Monday or Tuesday
is scheduled to recommend one of
them to Wilkerson.
Members of the committee hava
oeen silent on the Hart-Watson
proposition. They assert, that as
agents Of the court it is their duty
TO reach definite recommendation
and present it to Wilkerson. Mar
snail told The Times that he
feared any advance publicity on any
OF the bids would tend to panic"
policyholders.
cine Times does not know which
OF the bids will be accepted and
Goes not make the assertion that
the Hart Watson proposition even
has obtained serious consideration
Carlstrom Denies REPORTS
After the admission from Davis
that Watson was in the transaction.
The Times correspondent talked
with Oscar E. Carlstrom, former Re-
publican encouragement of Iln-
nois.
Carlstrom Immediately denied re.
ports that Hugh D. Hart and asso-
ciate would rewrite present policies,
huge commissions on the
first years business, that might run
into millions.
Our proposal is fair to the
he said. I'VE couldn't
and wouldn't attempt any such
scheme"
IF that was the plan, you
wouldn't be party to it as counsel
in these hearings?" he was asked.
Il should say not" he replied.
Would Tear Up Proposition
You'd tear up the proposition7
I'D tear up the proposition" he
mo man with any self
respect would attempt such thing
and still face one of those policy
holders"
Carlstrom explained that Watson
had been here recently and was one
Of the associates" He also con-
hrmed the fact that Watson had
not appeared at committee hear
lngs.
Carlstrom said Patrick j. Hurley,
former secretary of war, holder Of
4 $4,000 policy, also was interest
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