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HomeMy WebLinkAbout1973-04-15 A Mogul Steps Down (Miami Herald)u John MacArthur Sheds a Life's Routine That's Brought Billion -- And Headaches By GEORGIA MARTINEZ Herald Staff Writer For the last 50 years John Donald MacArthur has arisen at 5 a.m. to go about the business of making money. Business has paid off, mak- ing MacArthur one of the richest men in the country with estimates of his wealth ranging from $700 million to $1 billion. The son of a dirt farmer turned evangelist, MacArthur built a financial empire by selling insurance and build- ing Banker's Life and Casual- ty Corp. of Chicago which he owns and which has assets estimated at $500 million. In addition, he wholly owns other insurance companies, about a dozen hotels, includ- ing the Biltmore in Palm Beach and the Colonnades Hotel on Singer Island where he lives, and the PGA Golf Course. He controls Royal American Industries and Southern Realty & Utilities, both listed on the American Stock Exchange. He's the biggest landowner in Florida and owns large tracts of land in Arizona, Texas, California, and Michi- gan. IT'S ESTIMATED he owns roughly one third of the county, by the tax assessor's office. Now in his 76th year, Mac- Arthur says he's slowing down, and some morning sleeps in until 6 a.m. His sec- retary, who used to check in for work at 7 a.m., now comes in at 8 a.m. From time to time he refers to himself as "the old man" and says he's "going to start acting my age . . , and taking it easy. "It's like I had an alarm clock in my belly and it went off at 5 a.m for 50 years," he says. "Now I'm spending more time in bed, but I don't think I sleep anymore. They say when you get older you need less sleep." During the day he goes over the mail, dictates and keeps tabs on his financial empire. "You'd be amazed how much work can be done on the telephone," he says. NEXT WEEK, representa- tives of one of his New York companies are coming down for meetings. "I'll have to meet with them and hand- shake the boys and tell them what a good job they're doing," MacArthur says. "But this, too, shall end," he says. Possibly as a step in reduc- ing his work load and also because of his disaffection with Florida conservationists and politicians, MacArthur has announced he's going to begin liquidating his vast Florida holdings "one parcel at a time, in an orderly fashion." As the first step he an- nounced the sale of WEAT TV (Channel 12) for an un- disclosed sum. MacArthur claims "fanat- ics" have made it "popular to kick MacArthur around. "I BUILT Palm Beach Gardens (the city he developed) without taking down one tree when it was popular to bulldoze and level the land," he says. On the PGA I changed the fairways to protect the trees. I was a (conservationist before they were all born. Now all of a sudden I'm a spoiler," says MacArthur whose new developments in the north end of the county have provoked conservationists. He's been charged with a misdemeanor violation of state dredge and fill laws in connection with his north county development and has been battling in federal courts for several years for the right to develop his Mun- yon Island property. He is op- posed by North Palm Beach, the U.S. Corps of Engineers and the State Cabinet. "I don't like some smart alec that doesn't own a 25 foot lot telling me to build one house on five acres or not to build at all because it will ruin the beauty of the wilderness. It just doesn't go down very good. I believe in zoning, and respect for my neighbors but the pendulum has swung too far. "Florida is so bad because it has so many retirees run- ning around with nothing to ei but gang up on the legis- Sunday, ATkril 15, 1973 lators. People come down here from New York and New Jersey. The government furnishes them with an old age insurance. Of course my company would have done a twice better job and at a cheaper rate, and I think it's fine. But I wish to hell they'd provide them with something to do so that they wouldn't have to go to ecology meet- ings all the time. "PEOPLE as they grow older shouldn't just sit around and die. We should find something for them to do or they should find some- thing to do with themselves. God, time must drag on their hands." MacArthur came to Florida about 15 years ago to retire — MacArthur style — after some loans he'd made on Florida land deals went into default. "The loans ran into the millions and I was due for MacArthur Walks Through Colo nnades Hotel on Riviera Beach .. bought Banker's Life for $2,500; assets now put at $500 million EN 1 He Believes It's `Popular to Kick MacArthur Around' ... says he was a conservationist long before it became in fashion retirement so I said, hell, .I'll go to Florida and look after this myself." For MacArthur, retirement to Florida was a chance to make more money and he ended up with title to large tracts of land in Lake Park, North Palm Beach and Palm Beach Gardens among his Florida holdings. GRADUALLY he began spending more time in Flori- da. Since the late 50's he had lived here year round al- though he's still a legal resi- dent of Illinois. Born March 6,-" 1897, • in Pittstown, Pa., MacArthur was one of seven children and the youngest son of William Telfer MacArthur, a Scotsman who farmed for a while then turned evangelist. Despite humble beginnings MacArthur and his three brothers each carved their own mark. Alfred MacArthur, the old- est, went into the insurance business, became president of his own company and in- troduced John to the busi- ness. At his death it was re- ported Alfredleft an estate of $175 million. TELFER, another brother, ran a chain of suburban newspapers in the Chicago area. Charles became a fa- mous newspaper reporter and Pulitzer Prize-winning playwright who married actress Helen Hayes. John, who went to school o n 1 y through the eighth grade, worked at odd jobs " and at 17 started selling in- surance door to door. When World War I broke Turn to Page 6B,.Col. 1 MacArthur To Sell Area Property Continued from Page Al — Agreed to negotiate with the state "on a dollar basis, not a gift basis" for sale of the undeveloped oceanfront at the north end of Singer Island which has been viewed as a potential state park. — Expressed an interest in selling The Biltmore in Palm Beach only to someone who will retain it as a landmark. "I don't want anyone to tear it down and build condomi- niums," he said. As the 76-year-old MacAr- thur faced a battery of news- men, he indicated a strong de- sire to get out from under the pressures of being one of the wealthiest men in the world. "It's obvious I've reached the twilight of my years," said the man who is labeled a bil- lionaire but never attended high school. "I want to become less in- volved. I'm getting to old to `rassle,' " he said. However, MacArthur indi- cated he only will relinquish his properties to someone he feels "can do the job." "I'm not going to hold a fire sale," he emphasized. MacArthur said 90 per cent "or maybe 89 per cent depend- ing on the fluctuation of the stock market" of his holdings are in a foundation and will be administered by corporate trustees in the event of his death. "I'm 30 days into my 77th year," he said. "I feel a lot of these things have to be settled while the old man's around. I'm going to spend some time now getting my estate in shape." Much of MacArthur's hold- ings stem from his Bankers Life and Casualty Co., the sec- ond largest accident and health insurance company in the world which has its corpo- rate offices in Chicago where MacArthur still claims his le- gal residence. MacArthur said he is not a registered voter in Florida. "I'm just a tourist here who happened to make a few in- vestments," he said. He said, for example, his holdings in Texas exceed those he has in Florida. His former and present in- vestments in this area include most of the land which now composes the Village of North Palm Beach and the town of Lake Park; the land now mak- ing up the city of Palm Beach Gardens; the Colonnades and Colonnades Yacht Club here, The Biltmore in Palm Beach, and another hotel in the Baha- mas; numerous utility plants; other land holdings in Martin County and other sections of the state, all of which have been estimated to total about 200,000 acres.