Treharne - Quick Trial Sought

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Treharne - Quick Trial Sought - hours. the to at a was A. he at AUSTIN Ifl--A...
hours. the to at a was A. he at AUSTIN Ifl--A trial "as soon'M possible" will be sought for one or more of four persons charged with criminal perjury in Texas insurance insurance operations, Dist. Atty. Les Procter sahi yesterday. Indictments have been on the book here since May 27, 1»54 against Leslie Lowry, Paul Lowry and D. H. O'Fiel. all of Beaumont and Ennis, and Spencer Treharne of El Paso. Speculation was that Procter might call up first the cases ol the two Lowry brothers. The jowrys organized the Texas Mutual Insurance Co. of Beaumont, the company whose receivership case focused first strong attention on weaknesses in Texas insurance rules. of gas Quick Trial to Be Sought On Insurance Indictments Indictments were r e t u r n ed I against the men 15 days after asso [ date Justice Robert Hughes of t h e 1 3rd Court of Civil Appeals handed! down a scathing opinion May li'. 1954, in a civil suit growing out of the Texas Mutual receivership. Hughes said the Texas Mutual Casualty case was "replete with evidence of fraudulent and corrupt abuse of our insurance laws and gross if not criminal laxness in their enforcement." Perjury charges face both Lowrys Lowrys in the operation of the Texas Fire Insurance Co. of Emiis, a subsidiary of Texas Mutual, also in receivership. Paul Lowry faces a charge of submitting a false statement to the insurance commission. Solons Disagree Over Farm Plan WASHINGTON WV-Some Midwestern Midwestern Republicans expressed dissatisfaction dissatisfaction with President Eiscn- lower's farm program today while Democrats generally said they retain retain political initiative on the issue. Some parts of Eisenhower's package package drew praise from legislators in both parties. One such portion was the soil bank plan designed to reduce plantings and cut down on the huge, p r i c e - d e p r e s s i n g surpluses of some commodities. GOP Leaders Agree lo Push Farm Changes WASHINGTON im - President Eisenhower and Republican congressional congressional leaders agreed at a White House meeting today that the administration's farm program should have high priority at this session of Congress. The GOP leaders told reporters that the President's 10-year program program of highway construction also was stressed at the legislative strategy session. Democrats arc in control of Con- gicss and will set the legislative program but they have indicated a disposition lo give farm legislation legislation a top place. Eisenhower, on his second day back on (lie job after convalescence convalescence from his heart attack, talked with the GOP leaders nearly an hour and n half. Republican Senate Leader Knowland See Interpretive "lory, f f . Democrats contended this plan was ifted from their own proposals of recent years. But several Midwestern Republicans Republicans said they were disappointed aecause they doubt that the Eisen- lower program can have any posi- :ive effect on farm prices before the November election, Demos Urge Rigid Support Several Democrats argued, as .hey have in the past, that a return lo rigid price supports at 00 per cent of parity, abandoned by flic administration in the 1954 law, is ;he only effective way to give farmers a needed boost in income. One of them, Sen. Humphrey of Minnesota, predicted Hie Senate will write such supports into its package farm bill, scheduled for early consideration in that body. The Agriculture Committee h.is before before it a bill passed by the House last year to re-establish 90 per cent floors for basic crops. Parity ,s a legal price level de-signcti to be fair to farmers in relation lo their costs. Humphrey, ft member ot the committee, said, however, that the fixed supports might be modified in either or both of two ways. One would be lo limit the maximum maximum supports to hinh-qualily prod- ucls. The other would he to limit the amount of price support money given to a .single f a r m ; Eisenhower suggested that Congress consider this idea, although he mentiunui: no possible ceiling. Kllrmlfr'n Vlrw Sen. Ellundcr fD-La, the committee committee chairman, said (hat as for as he is concerned, "90 per cent .supports will be in our bill." Hut O'Fiel, attorney for Texas Mutual, Mutual, is charged w i t h perjury. Trcharnc's indictment vaj Oh two counts of perjury in statements statements to the Insurance Commission Commission about the organization and operations of United Lloyds ot El ""'aso, now defunct. All tiie companies involved in :he indictments were put out od Business by the state on grounds :hey had been fraudulently organized organized and operated. Procter said none of the case* tave been brought to trial sooner tecau.se he and his staff have been 'trying to go back to old cases is rapidly as we can get to them. jut we" have concentrated first on the docket that faced us when 1 as elected." Details of how Texas Mutual asualty was organized and operated operated prompted a strong denunciation denunciation by Hughes in his May, 1934, opinion. He dealt with the trial record citing a greatly inflated value Texas Mutual placed on its Beaumont office building. "Just how this property which mushroomed in value so fast was valued and how approval of such value by the insurance board wai obtained with such ease and dis- jalcli brings into focus the part )layed by state Sen. and attorney tVUtinm T, Moore of Bryan,"' Hugties wrote. Moore, shown in the record a receiving more than $13,000 from Texas Mutual for legal service! Between December, 1W9, and February, February, 1953, said of Hughes' opinion .hat he had no apology. He said le bad followed the Jaw as he saw it in securing the building ap- niisal. The only other person against whom an indictment has been returned returned in Texas insurance failures is Ralph Hammond of Houston. charged with perjury in operations ot Uoyds of North America, placed in receivership amid charges of "politics" in the summer of 1954. Hammonds was once associated with ont- of two San Antonio insurance insurance companies which ran into financial trouble and were combined combined to liel]) form the now defunct Genera! American Casualty. A $6,640,000 dama«* suit in be- uilf of creditors of General American American was filed Dec. 30 by the state receiver, making* allegations o! trawl and conspiracy involving of liters of General American Casualty Casualty and iotir stale insurance examiners. The examiners, including including ihe chief examiner and his first assistant, Iwvc been suspended. suspended. Continuing publicity about the Texas insurance .situation prompted prompted a statement yesterday by Wil- Jiam GJass of Smi Antonio, president president of (lie 'iV.Mis Legal Kcscrve Officials Assn., cautioning (ho public public aj;ainsL wlial he called "dan- £orons distortions of facts" reflecting reflecting on Texas life insurance.

Clipped from
  1. Abilene Reporter-News,
  2. 10 Jan 1956, Tue,
  3. Page 21

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  • Treharne - Quick Trial Sought

    mereasner – 24 Jun 2013

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