Illinois Insurance

Chicago’s Stevens family hates publicity. And in November last year, when Stevens-controlled Illinois Life Insurance Co. fell into the bankruptcy of $ 150000000 $ 13000000 and policy-Stevens hotel mortgages frozen firmly in their portfolio, the press has left the Stevenses a little alone. Since then, their actions have financial flourishes in a big scandal in Chicago. Last week, auditors beneficiaries only, as many of these acts had cost $ Illinois Life 12456409, approximately one third of its heritage.

In recent months, both state and federal authorities have been settled in the long chain of handling resulted in what the insurance company. Loans amounting to $ 3446000 Stevens on the family and friends, the use of mannequins, finance mad was rooted in the books. Stevens Sauberste tour:

In December 1931, the hotel Stevens $ 33000000 ( “World’s Greatest”) before the end of the year with $ 16,000 in cash and not enough food to pay bills for one month. For the window dress assets and insurance-Hotel-Man, James W. Stevens, the hotel had a business exchange non-$ 600000 $ 600000 Note Illinois Life’s Liberty Bonds. Thus, the hotel is the Stevens report was the balance sheet position, “Liberty Bonds cash, including $ 616000th”

Not satisfied with Stevens hotel on the last day of the year acted for a third mortgage on his knowledge of the Illinois Life, in order to reduce its current debt of $ 600000th Illinois Life allows the hotel to 78 cents to the dollar the third mortgage, but the same day, the mortgage on their books at par. Although Stevens first hotel of letters of guarantee were then in the sale of 25 cents on the dollar, Illinois Life credited itself with a gain of $ 200000 This is not surprising jugglery the end, a few days later, l ‘hotel Stevens pointed out that life is not in Illinois for the third exchange for the mortgage, but for $ 700000 cash. Illinois briefly explains the life of dividends to the tune of $ 1000000.

William James Stevens, a wise, small old man, the curvature of the prowl Sunday spotting probably ads, is the head of the family and was chairman of Compagnie d’Assurances and La Salle Stevens and hotels. Raymond was the son of President William of Illinois Life. Excellent, place Ernest-Son James Hotel is the active man, now often said: “I feel as if I was a hundred”.

Illinois Life was the biggest failure of the life insurance during the last year. Eight of the nine other companies were either Illinois or their subsidiaries. Tenth was a small company Negro in Washington. Intensive jealously on their good reputation, insurance men throughout the country, about geschundene Illinois insurance laws in general, their lax enforcement, especially .*

* Time of having committed last week indicating that the Aetna Life group of Hartford had the most insurance and loans (including loans of $ 50000 Col. Luke Lea & Son) receivershipped Union compensation group of New Orleans. Aetna Life appointed as representatives of several agencies, which were previously handled Union underwriting compensation, a binder Aetna pending investigation agencies.