INSURANCE: New Failure in Texas

More than 40 Texas insurance companies have gone bankrupt in the past three years. Last week the state's slow-moving Insurance Commission revealed probably the biggest bust of them all. Said the commission: ICT Insurance Co. is "hopelessly insolvent," to the tune of $4,460,243. Left holding the bag were some 14,000 stockholders and 100,000 policy holders. Most of them were labor-union members, because more than 50% of ICT Insurance Co.'s stock was owned by about 380 Texas A.F.L.-C.I.O. locals.

The idea of putting unions into the insurance business came in 1951 from backslapping Ben Jack Cage, now 39, who won enthusiastic support...

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