1936 - GOV - Investigation of Real Estate Bondholders' Reorganizations - Part 18

1936 - GOV - Investigation of Real Estate Bondholders' Reorganizations - Part 18 - [GooglePlay-link- 1475p] - Starts at page 1216

  • Public Hearings Before a Subcommittee of the Select Committee on Investigation of Real Estate Bondholders' Reorganizations - US House of Representatives
  • or
  • Public Hearings Before a Subcommittee of the To Select Committee to Investigate Real Estate Bondholders' Reorganizations - US House of Representatives

AT MANCHESTER, N, H.  - SEPTEMBER 30, 1936
AT BOSTON , MASS. - OCTOBER 1 AND 2, 1936

Now, it later developed that early in 1936 a deal was consummated which resulted in the sale by the Equity Corporation, or its associated companies, who were then owners of 90 percent of the General American Life Insurance Co.'s stock, of that stock to a newly formed holding company, organized in Dallas, called, I believe, the Southwestern Investors Holding Co. The exact name will come out in the testimony.

This newly formed holding company in Dallas was created entirely by the use of money of the Southwestern Life Insurance Co. with the money secured by the holding company in three varied processes, the Eastern or Equity Corporation, the holders of the stock of the General American Life Insurance Co., sold their stock to this newly formed holding company in Dallas for $2,700,000. So that as the matter now stands the Southwestern Investors Holding  Co., of Dallas, Tex., owns and controls the General American Life Insurance Co.
The CHAIRMAN. Who sold that stock?
Mr. SULLIVAN. The Equity Corporation and its affiliates that owned it. The exact ownership of the stock at the time of the sale will come out in the testimony.
The CHAIRMAN. They sold it to the holding company.
Mr. SULLIVAN. To the new Southwestern Investors Holding Co. of Dallas.
So that as the matter now stands, the Southwestern Investors Holding Co., of Dallas, owns and controls the General American Life Insurance Co. The General American Life Insurance Co. owns or rather controls as trustee, the Missouri State Life Insurance Co., or what is left of it. The Missouri State Life Insurance Co. assets holds or controls the Southwestern Life Insurance Co., and the Southwestern Life Insurance Co. owns and controls the Southwestern Investors Holding Co., so that now we have a complete circle. You can start anywhere in the circle and go around and end up where you started.

What we desire to attempt to show the committee is the interlocking of these companies and the evils which attach themselves to the life-insurance business as the result of those interlockings.  (p7)

1936 - GOV -  Investigation of Real Estate Bondholders' Reorganizations (Part 18) - 2163p

  • Subcommittee of the Select Committee on Investigation of Real Estate Bondholders' Reorganizations

Mr. TELFER. In 1929 the Modern Woodmen were actuarially insolvent — don't ask me what that is, just accept it ; it is a long story so they proceeded to rerate their policies, and in doing that they made a contract with a firm known as Frank Pearson & Co. of Chi cago. Well, Pearson was a transfer man-a man who transfers an old policy into a new one. Your Mr. Sullivan could tell you a lot about that.  (p650)