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Saunders Says Press to Blame Created the ‘Scandal’ Out of Imagination, Says 4 AUSTIN Seldom has any Texas state agency been under heavier fire from more quarters than the .Insurance Commission. The Observer stumbled into a meeting of employees addressed by the two commissioners recently, and the proceedings shed some light on how they are dealing with the result-. ing tensions: J. Byron Saunders, chairman of the comniissioti; :told about 150 assembled employees : “The press has made an insurance scandal out of the figment of their imagination. There i s n’t anything wrong with the Insurance Department so far as I know. Institutions go on. Men may fall by the wayside.” He fold the employees that the commissioners have “all the confidence in the world in you. You owe is by the same token the corresponding obligation to do us the finest . lob you are capable of. None of us are condemning or commending any of you. If you do what is legal and what is right, you have us behind you.” Saunders hinted at his irritation with newsmen who have been beseiging the commission’s offices on a thousand points of inquiry when he said: “Don’t talk to everybody and any body and run down the department. Be proud of your department. Nobody’s going to lose his job as long as he does what’s right.” Saunders said that with “the help of you people and the good Lord, we are going to see it through. Personally I think anything that can’t stand a bath of fire isn’t worth its salt …. If there ever was a time in the history of this department when you should be on your best behavior, and report to your superiors and department heads anything out of order or our of the way, not in accord with the way it should be clone …” Saunders admonished his workers. Saunders quoted Lincoln when under heavy fire as president in 1862, to this effect I do not have time to read, much -less answer, all of my critics. If I am right everything will come out all right. If I am wrong ten angels swearing by me will make no difference. -Commi’ssioner Mark Wentz added: said meets with my entire aproval. We do have confidence, in all of you. We want you to merit that confidence. We expect you to.” Whiskey for Commissioners receiving “other gifts” which the suit does not specify. The suit doesnotmention any gifts to the insurance commissioners from General American. It was brought by San Antonio lawyer Josh Groce acting for the state insurance liquidator, J. D. Wheeler, who is an employee of the Insurance Commission. Saunders said the four accused examiners were “hurt, disappointed, and surprised … but they welcome the investigation and believe they will be vindicated.” Smith said he understood the examiners were sued “to make a case” against other defendants. ;Mark Wentz, the ‘other commissioner, who has stated he has never re.ceived trips or favors from insurance companies, did not comment on the examiners’ suspension. THE OBSERVER has also come into possession of a copy -of a document which tends to suggest that a Robert. Butler was given some photographic equipment by General Americanin 1953. The Observer also has a copy of a mysterious $1,800 check made out to a General American official on the original and to seven dashes \(that is, to ently is was cashed during the course of the crucial Insurance Commission examination of General American in 1952. The company was declared sol LEGAL ADVERTISEMENTS STATE OF TEXAS COUNTY OF NUECES TO WHOM IT MAY CONCERN: Notice is hereby given that Philip Lieberman, doing business as Lieberman’s, intends to incorporate such ‘firm, effective immediately, under the firm name of LIEBERMAN’S OF TAFT, INC. PHILIP LIEBERMAN STATE OF TEXAS COUNTY OF NUECES TO WHOM IT MAY CONCERN: , Notice is hereby given that Philip Lieberman, 1 doing business as Lieberman’s, intends to incorporate such firm, effective immediately, Under the firm name of LIEBERMAN’S OF ROBSTOWN, INC. PHILIP LIEBERMAN FHE STATE OF TEXAS COUNTY OF PARMER TO WHOM IT MAY CONCERN: Notice is hereby given that Russell A. Massey and Edward Massey, partners, doing business under the firm name of Massey Brothers Drilling Company, intend to corporate such firm without a change of firm name, and that the e -said corporation shall be known as Massey Brothers Drilling Company, Inc., that this notice shall be forfour consecutive weeks at least once a week, in each week in a newspaper, published at the seat of said firm has its principal place of business. the state government and in the county in which MASSEY BROTHERS DRILLING COMPANY RUSSELL A. MASSEY EDWARD MASSEY Sworn to and scbscribed before me, this the 13 day of January, A. D., 1956, by the said Russell A. Massey and Edward Massey, certified which witness my hand and seal of office. GLENN E. REESE Notary Public in and for Pnrmer County, Texas NOTICE TO CREDITORS OF THE ESTATE OF MARION POLK CLARKE Notice is hereby given that original Letters Testamentary upon the Estate of Marion Polk Clarke, Deceased, were granted to me, the undersigned, on the 26th day of July, 1955, by the County Court of Travis County, Texas. All persons having Claims against said Estate are hereby required to present the same to me within the time prescribed by law. My residence is 870 Fifth \(Continued from Page Saturday Saunders announced the effective dismissal of four examiners who had been suspended because of accusations they took gifts and favors from General American and then wilfully showed the company solvent when it was insolvent. \(They have been granted permanent leaves of abTestifying before the Senate Investigating . Committee on this matter several weeks ago, .Saunders stated he had not found the examiners guilty of any acts for. which they might be criminally .or’civilly liable but that they may have committed “morally censur. able”. acts. Saunders had no comment Monday on the whisky paid for by General American. FOUR INSURANCE Commission examiner s, including Chief Examiner Larry Blanchard and Supervising Examiner Robert Butler, have been suspended without pay by the insurance commissioners because a $6.6 million creditors’ suit against General American by its 57,000 claimants alleges that the four received certain gifts and favors from General Americana radio, apartment’ rent, deer hunts, and a banquet and a party and shoWed General Amerkan solvent when it was insolvent in 1952. Butler and Blanchard are charged with AUSTIN It was a relatively quiet week in Texas insurance. Two more campanitswere ordered to show cause why they should be allowed to stay in business, TransCounty Mutual of San Antonio \(mailing address 2109 North Akard, DalTrans Western Mutual -Life , Insurance of Dallas. . The board accused Trans-County Mutual of being a “purely commercial enterprise,” of paying excessive commissions to agents, of engaging in real estate operations without legal authority, of conducting its business fraudulently, and of contesting claims without good reason. It had a reinsurance agreement with now bankrupt Home Service Casualty. U. S. Trust & Guaranty, U. S. Automotive Service, and Arkansas Fire and Marinethe three con-Tanks of A. B. Shoemakewere placed in permanent receivership after auditors told an Austin judge U.S. Trust lost $3.8 million and U.S: Automotive lost $1.5 million since 1951. Avenue, New York, New York, and my mailing address is ‘c o William A. Brown, 702 Brown Bldg., Austin, Texas. MARION CLARKE COOK Independent Executrix of the Estate of Marion Polk Clarke, Deceased SHERIFF’S SALE BY VIRTUE of a certain Order of Sale issued by the Clerk of the 53rd District Court of Travis County, Texas, on the 12th day of January, 1956; in a certain Cause No. 100,344, wherein First Federal Savings and Loan Association of Austin, is Plaintiff, and E. 0. Smith, Jessica Beatrix Smith Rogers, Curran Price Rogers . III, Sylvia Joan Rogers, Allan Kyle Rogers and Modern Floors, Inc., are defendants, Judgment was recovered by Plaintiff against Defendants E. 0. Smith and Jessica Beatrix Smith Rogers in the sum of Six Thousand Nine Hundred Ninetyest thereon at the rate of 6 per centum per annum from the 7th day of December, 1958, together with ,all costs of suit, in the 53rd District Court of Travis County, on the 7th day of December, 1955. I, on the 24th day of January 1956 at 9:40 o’clock A.M., have levied upon, and will, on , the 6th day of March, 1956, that being the first Tuesday in said moath, at the Court House door, in the City of Austin, within legal hours, proceed to ‘sell for cash, to the highest bidder, all the right, title and interest of E. 0. Smith, Jessica Beatrix Smith Rogers, Curran Price Rogers III, Sylvia Joan Rogers, Allan Kyle Rogers and Modern Floors, Incorporated, as the same existed on the 29th day of April, 1964, and at all subsequent dates existed and still exists, in and to the following described property, levied upon as the property of said defendants, to-wit: of Austin, ‘Travis County, Texas, according to the map or plat of said Addition, recorded in Vol. 6, Page 102, of the Plat Records of Travis County, Texas. THE ABOVE SALE to be made by me to satisfy the above described judgment for $6,997.38, in favor of the plaintiff, together with the costs of said suit, and the proceeds applied to the satisfaction thereof. T. 0. LANG, Sheriff, Travis County, Texas; By: HENRY KLUGE, Deputy Austin, Texas, January 25, 1956. NOTICE OF DISSOLUTION OF FIRM AND INTENTION TO INCORPORATE Notice is hereby given that the undersigned Rudy J. Kunetka, sole owner of the business firm Rep. Bert McDaniel sued the state liquidator in an effort to have the depositors in the company defined as preferred -creditors with first claim on the assets. Shoemake was declared out of danger of death from the bullet he put through his skull and was moved to a veterans’ hospital at McKinney, destitute and still unable to talk. Investors may have been mulcted out of $6 million by a dozen companies which sold nearly $9 million worth of stock under “1303B” provisions of the state law permitting promotional stock-selling, Secretary of State officials revealed. A stockholders’ receivership petition against McBride Oil & as Corp. was denied in court, and the company sued for damages for libel and slander in Brownsville. Great American Loan and Trust of ,San: Antoniowhich surrendered its permit to sell insurance two weeks ago –,–announced it is still operating its chattel and mortgage loan business. Perjury trial of three former officials of bankrupt Texas Mutual Insurance Co. was set for April 2 in Austin. of Rudy’s Poultry and Egg. Company, located at 6403 Bayway Drive, formerly known as 301 North Market St. Road, Baytown, Harris County, Texas, intends to dissolve such business firm of Rudy’s Poultry and Egg Company and incorporate the same without a change in the firm name thereof, the corporate name to read Rudy’s Poultry and Egg company, said business dissolution and inecirporation to take place after the expiraof January, 1956. RUDY J. KUNETKA, sole owner of Rudy’s Poultry and Egg Company THE STATE OF TEXAS To any Sheriff or any Constable within the State of TexasGREETING: You are hereby commanded to cause to be published, ONCE, not less than ten day* before the return day thereof, in a newspaper printed in Travis County, Texas, the accompanying citation, of which the herein below following is a true copy\(but if there be no newspaper so printed in said county, then that you cause the said citation to be posted for at least TEN days before CITATION BY PUBLICATION THE STATE OF TEXAS TO. ALL PERSONS INTERESTED in the estate of Mrs. Ulna Martens, Deceaeed. No. 16,71’0, County Court Travis County, Texas. A. C. Brandes, Administrator thereof, filed in the County Court of Tray% County, Texas, on the 30th day of January, A. D. 1966, his Final Account of the condition of the Estate of said Mrs. Elma Martens, Deceased together with an Application to be discharged from said Estate. Said Final Account and Application will be heard and acted= Ott by said Court on the first Monday next after the expiration of ten days from date of Posting or Publishing this citation, the same being the 20th day of February, 1956, at the Courthouse thereof in Austin, Texas. at which time and place all persons interested in the Account for Final Settlement of said Estate are required to appear by filing a written answer and contest said account and application should they choose to do so. The officer executing this writ shall promptly serve the same according to requirements of law, and the mandates hereof, and make due return as the law’ directs. Given’ Under My Hand and the Seal of Said Court at office in Austin, Texas, this the 30th day of January, A.D. 1956. ElVlILIE LIMBERG, Clerk of the County Court, Travis County, Texas By M. EPHRAIM, Deputy vent by the was charged to “travel and entertainment of agents,” but there may be some doubt that General Arnerican entertained any insurance company agents at that time. The Observer has no information indicating how this $1,800 was disbursed other than that printed in this story. As the Observer has earlier reported, General American paid legal fees of $15,000 to Hubert Green, Sr., in the summer of 1954. Green, Sr., is the father of the present San Antonio district attorney who wasBexar County campaign manager for Governor Shivers in the summer of 1954. The Greens practiced law at the same address. Two More Firms Challenged The Texas Observer Page 5 Feb. 8, 1956 SUBSCRIBE or RENEW to THE TEXAS OBSERVER For the Truth About Texas and a Glimpse at Its Future One Year-52 Issues-416 Pages 1,664 columnsOnly $4 Name and Address : –