INSURANCE: More Scandal in Texas

In Texas, where ten insurance companies have gone broke in 16 months, there was another crash last week. It was the biggest yet. C. B. Erwin, board chairman of General American Casualty Co., * and two other sad-faced executives walked into the Austin office of State Insurance Commissioner Garland Smith and admitted that General American was bankrupt. It was $1,000,000 in debt and unable to pay its claims. General American, which collected $6,000,000 in premiums last year, has 120,000 policyholders in Texas and nine other Southern states.

Three weeks ago Erwin...

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