The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-07-08
WATSON BEHIND
SCREEN IN HUGE
INSURANCE DEAL
Connection With Illinois Life
Bill Revealed: Millions of
Dollars Involved.
Continued From Page One)

tOOntlnueu FROM rage OHe|
ed in the company. He said he did
not know what Hurley's activity
would be if the Hart bid is sue
cessful.
What VAL Watson's status be in
the new company, if any?" Carl
strom was asked.
Associated with me as counsel in
this part of the proposition, he prob
ably would be counsel and men,
Der of the directorate" Carlstrom
said
Referring to the money-making
aspects Of the new company, Carl
strom told The Times that the only
profit could be on new business.
There is no estimate what this
new business might amount to-" he
said 1T might be 100000 in a
year or $4,000, 0OO-or $4,000, 000
There is no way to find out"
Involved in the picture with Hart
and watson is Fred w. Bailey, who
says he was called into the PROPOSE
ton as an aid to Hart. Bailey is
considered an expert in his line.
Best for POIicyholders'
Bailey pleaded that the proposal
was the best for the policyholders
and said that publication of any
content Of the situation would ruin
Harris chances in several proposals
he now has pending in addition to
the Illinois Life. Hart, apparently,
is an expert insurance man, with a
record pulling insurance companies
out Of slumps.
The Times learned that, although
the 100000 r. F. G. loan which
will be sought if Hart and Wat
son are successful, is more than is
needed" that it is planned "as an
aid in paying off debts of the COM
pany."
Carlstrom explained that the pro-
posal would call for no depreciation
in policies, but those which were
involved in the crash would be on
restricted basis. The new business
would be liquid and policyholders
would be insured full backing of the
company, he said.
Watson Visits Judge
Questioned as to Watson'S activity
in the case, Judge Wilkerson said:
Watson was in several weeks
ago. He told me he had a man he
wanted me to meet told him that
all affairs of the company would be
turned over to the committee and
anything to be said would have to
be said before those gentlemen"
Contrasting with statements in
Chicago, is the assertion of Watson,
who is in Washington, purportedly
waiting for the signal to complete
R. F. G. negotiations. WatSon's
statement follows:
Il have no connection with this
new company you are talking about,
I'm not a party to any attempt to
take over the life insurance COM
pany. I talked with the Judge and
Pat Hurley only as a friend of
Bailey's.
Il have no financial interest In the
venture and know nothing about its
details. I understand that Bailey
and Hart have submitted some kind
OF plan that is being considered with
punch Of others, now before the
court"
from an unimpeachable source.
The Times learned that Watson's
name appeared before the insurance
committee, although he was not
present.
Another man, close to the Hart
proposition. told The Times that:
"Watson's nothing but the store
front in this thing"
Double Cross Charged
Charges of double crossing are
r m p a mt among the interested
parties in the various propositions.
Julius Abrahamson, insurance
man, is the target for criticism from
Bailey, and Abrahamson hurls the
charges back at Bailey.
According to AbrahamSon, who
formerly had written thousands of
dollars worth of business for the
Illinois Life several years ago. he
has the, backing of large bloc Of
policyholders.
He said he first organized the
policyholderS committee, but when
outside companies began to bid, he
obtained the backing of the Bank
erS' Life of Monmouth. III. He said
that Bailey was thrown out" and
took his plan before the Hart group.
1t was revealed, however. that
since Bailey has been working for
the Hart group, he also has been on
the pay roll of the Bankers Life.
Situation Is Tangled
The entire situation is muddled.
Only few of the policyholders have
forfeited their policies since the
crash.
This company should, by all
means, be kept within the state"
Abrahamson said. IF it goes out of
Illinois, the difficulties are increased.
Two hundred employees, their abil-
tiles trained only to this business
will walk the streets.
n proper naturalization plan, al
ministered honestly for the benefit
of the policyholders and not for in
dividual gain and greed, would re-
suit in erection of one of the great
est insurance businesses in the ma
ton"
The Illinois Life crashed with the
downfall of the famed Stevens fam
lily. 1t is alleged that insurance as
sets went into hotel holdings and
that one assurance of return would
be the success of the LaSalle and
Stevens hotels during the worlds
fair
The insurance COMPANY already