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The Gospel In the Book of John D. (PBPost-Times) 3-9-75---------------- 77. Palm Bc!ach Post -Times. SUNDAY, MARCH 9, 1975 ... Mal ...... `It's MY .Birth Month, Sell. More!' By RAYMOND MARIOTTI Editor of The Post There is a tall, solitary pine tree right off the 18th green of the PGA Country Club in Palm Beach Gardens. It probably never snagged a Jack Nicklaus approach shot. And as a shade tree, it would make a better hat rack. But on this blazing summer day, with the sun almost directly overhead, about 40 people are knotted under the pine grabbing snatches of shade and fanning it in their faces. The short -sleeved gallery leaves the shelter and gathers around the green as a rather unlikely threesome plays through. There is a bride and a bridegroom and a young Baptist minister. The be- trothed are in the sportswriting business, so why not a wedding with a sports motif? Response to the invitations is exceptional: the friends and the curious. Among them, off to the side, chain-smok- ing through a trim mustache, is a slightly built, slightly bent spectator who just came to see the show. "Dearly beloved," intones the minister, "we are gathered here today in this sanctuary built by God . . , " Off to the side, John D. MacArthur grins. He is almost embarrassed. John D. M-�.e,,Arthur was not born on Dec. 25, f.49. it although he was responsible for that day's wed- jing ch,ppol now JD114 radflor thax-i �he PGA. Mr. Mac was born on March 6 and last Thursday was his 78th. He prefers to say he is beginning his 79th year because that puts him closer to his personal goal of 80. After that, "You, sir, are authorized to write my official obituary." It would be too long a wait. Obituary writers are .q,L; frail as their subjects. Mr Mac almost died five years ago of stom- ach cancer. Dr. Don Warren and others had just about given up hope. Mr. Mac tells of the terror of fighting sleep in fear he would never awaken. Semi-conscious, he fought sedation. "I realized I had so much to do. I hadn't prepared properly. What would happen to the company? It would go down the drain to pay the taxes. I asked for one more year to straighten things out." When morn- ing came to Good Sam Hospital, Mr. Mac bel- lowed, "Get me my lawyer!" Mr. Mac got his year, and at least four more, from whomever he asked. He has outlived that golf course marriage and he may challenge the pine tree. He's put together a board of trustees to see to the survival of the company, in case its only stockholder turns out to be human. The company is Bankers Life and Casualty Co. Primarily, it sells insurance, prodigious amounts of it, abetted by the golden -voiced per- suasions of conservative newscaster Paul Harvey. But it is much, much more. It is a massive investor in other kinds of business. Through Bank- ers, its subsidiaries, and other directly owned corporations, John D, MacArthur is one of the richest men in the world. He owns vast amounts of real estate. He's in banking, utilities, mort- gages, housing, hotels, cattle raising and well drilling. He even owns a distillery that makes John D. MacArthur bourbon. He's a billionaire, a word he doesn't like very much. "I'd have to sell everything I own to find out what I'm worth, and I'm not about to do that. As H.L. Hunt once said, `Anybody who knows what they are worth isn't worth very much.' Land is only worth what you get for it." Hunt attended Mr. Mac's birthday party in Chicago a year ago, a splashy formal affair with a cast of hundreds. But death came for Hunt be- fore the more informal affair last Saturday in the Conrad Hilton ballroom. Mr. Mac made this year's arrangements and he insisted he would be dressing casually. There is a striking similarity in the habits of the two tycoons. Hunt, reportedly even more wealthy than MacArthur, routinely took his lunch to work in a brown bag. Mr. Mac's supper usually is confined to liquids, preferably strong ones, but if he feels like snacking he'll share the peanut butter and crackers, or sliced Kraft cheese, with the guest fortunate enough to have been invited to his apartment in the Colonnades. There isn't much impressive about the apart- ment except a large collection of chess pieces, two poodles and Catherine MacArthur, his second wife, who rarely ventures out. Mrs. MacArthur was the front office staff for the one-man insur- ance sales force when MacArthur bought his first insurance company during the depression around 1930. Today the MacArthur Insurance Group in- cludes 13 companies, licensed in all 50 states. There are 10,000 people on the payroll with more than 7,500 salesmen. And Mr. Mac takes a per- sonal hand in motivating them to sell. A month ago, he explained his role this way: "I know I have no contract with the Almighty and the time is growing short. I am calloused to far as public opinion in concerned, which is evi- denced by the fact I never hired a public relations f irm. I built a company from nothing to a very respectable financial institution in size and per- formance. Admittedly no one man ever did any- thing worthwhile by himself even though he leads the parade and takes the bows. In retrospect I know my success was brought about by my good luck and the contribution made by others. It was luck that caused me to meet and hire great peo- ple. Their combined efforts, with a bit of guid- ance from me, did the job. "In a few weeks I will start my 79th year on this earth. For the past 40 years my men have celebrated March by writing more insurance. I felt like a prostitute but I have always delivered the body; knowing well that most of our salesmen double their income during my birth month. "Pitting one office against another makes competitors out of more than 90 per cent of our sales force and generally puts twice as much money in their pockets. I will be in Chicago March 1, and then go on to Denver, `Frisco, Los Angeles and Dallas before I return. If I feel equal to it, I will make a second trip through the East. I hope to see at least 60 per cent of the sales- men." A year or so ago, a similar sort of conversa- tion first made me wonder what moved this man. How did he see the world and how did he see himself? Was it not the height of conceit to think salesmen were moved by anything more than his signature on a commission check? He was plan- ning a "tour" at the time, to end up at a Bankers Life convention in Las Vegas. "Take me with you," I suggested. His reply was: "A newspaper- man! With me? In Vegas? You've got to be kid- ding." Early the following Sunday morning, my home phone rang. The conversation (Mr. Mac arises at 5, I'm dull -brained till noon) went some- thing like this: "This is John D. MacArthur. I'm surprised you'd have a listed number." "Yes sir." "Okay, smart ass, were you serious when you said you'd like to go to Vegas with me?" "Yes sir." "We'll be leaving at 7:30 Tuesday morning and returning Friday but you can come back when you feel like it. I'll get you an open ticket." "Ticket?" "Yes, they require tickets on commercial air- planes." "Oh, we're going commercial." "Of course. Is it all right with you if I make the arrangements? It has been my observation that the back part of the plane gets there almost as fast as the front part." "Huh?" "I mean, if you have no objections we'll be flying tourist class." "Fine, that is, presuming I can reimburse you for my expenses." "Well, I'm inviting you to be my guest but if that would offend your keen sense of morality or make you feel like you were taking a bribe, then by all means, feel free to give me your money." "It's company policy." "Fine. Then I'll see your smart ass early Tuesday. Goodby." Mr. Mac's capacity for overwhelming victims early in the morning is exceeded only by his ca- pacity to overwhelm them early in the evening by drinking them under the table. He showed up Tuesday with his young hotel manager, Lopez, in tow. Lopez was carrying what looked to be an oversized lunchbox, scarred and metallic. It contained Mr. Mac's extra shirt and socks, a piece of luggage obviously designed to last. Mr. Mac was in uniform, a Scotch plaid blazer that is dominated by green where we usu- ally think of red on Scotch plaid. There is some In MacArthur Blazer He Addresses Bankers Life Convention 6 . . photo from "A Whole New Life" brochure about 1974 sales meetings Mr. Mac ---From lll ner think-positive aura surrounding the people and a reverence toward the man. They talk with pride about what he has given them to sell. And if they are brainwashed, then MacArthur ought to mar- ket the technique. The salesmanship may have been an inherent gif t, but it took more than that to get him where he is. There are some suggestions contained in a MacArthur biography called "The Stockholder" that are less than flattering. MacArthur dislikes the book and describes it as unauthorized. The author depicts some uncomplimentary relation- ships between Mr. Mac and his family, which MacArthur insists are untrue. Indeed, it is diffi- cult to imagine how the author may have gotten quotes of Mr. Mac's whisperings to his wife on their wedding night. MacArthur prefers not to discuss his first wife and their two children beyond saying they are adequately provided for. He more willingly Will talk about his special relationship with his brother Charles, the playwright and Ben Hecht's collaborator on the popular play, "The Front Page." Mr. Mac regularly participates in func- tions called to honor Charles' widow, screen star Helen Hayes. He always has had a. special relationship, with entertainment personalities. He has the Bob Hope suite at the Colonnades, built as an inducement to get the comedian to participate in the dedication of a golf course. He prizes a gag photo of him serving breakfast in bed to a ruffled Hope. He has an ill-defined, but close personal rela- tionship with Burt Reynolds. He was best man at the wedding of TV interviewer Mike Wallace. Morton Downey is a close friend. Yet his one at- tempt in the business, producing a Broadway play, flopped. It made him believe "it's a tough way to make a buck." Insurance was easier. In "The Stockholder," it is suggested that it was easy because MacAr- thur's company didn't pay its claims. Competitors are quoted as saving that he was a blot on the industry. The charges make him furious, "They'd put me in jail if I didn't pay my claims. It's a very regulated industry. Catherine and I did it through hustle and hard work and the good idea of mail order selling, which went over far better than any one would expect." Mr. Mac says his fledgling companies, which he bought for no more than the priceof a new car today, were under constant scrutiny: "As you would suspect, there were a number of cliffhanging situations. On a number of occa- sions I was given up for gone by many, including some of my intimate associates. However, others encouraged me, including Ed Day. "At that time Day was a member of Adlai Stevenson's law firm and the governor appointed him insurance commissioner. I was the biggest problem confronting him when he took office. Bankers Life of Des Moines, Iowa, had induced their commissioner to cancel our Iowa license without a hearing. Day had been officially noti- fied of their action and given a copy of the trumped-up charges. "He summoned me to his office before he had time to get his chair warm. We spent the best part of three days together talking about my problem. He solicited my advice as to what he, as director of insurance of our home state, should do. My advice was to call a hearing, invite every commissioner from every state to attend and bring their files. I �.lso suggested he send an invi- tation to the insurance press and the leading newspaper in every capital city. "Day was shocked that I was willing to ex- pose my company's activities to the world and he questioned his authority to invite out-of-state commissioners. I convinced him there was noth- ing as vicious as entrenched business and that the entire problem has been created by some old es- tablished insurance companies who resented my doing more business in their state than they were. About 40 per cent of the country's insurance com- missioners accepted the invitation, and it took the ballroom of the Bismarck Hotel to accommodate the crowd. "The hearing lasted a week. Ed Day made his finding of not guilty and gave all other commis- sioners an opportunity to justify their findings. Robinson from Ohio was the only commissioner who cast a negative vote. My nationwide image immediately improved. All of my companies are now in good standing with the regulating officials today. " During this trying experience a handful of people gave me encouragement. The vast major- ity disagreed, including my own lawyer who re- fused to represent me on the basis that only those commissioners opposed to me would accept the invitation and my own commissioner was a fresh- man and would be overwhelmed by the others. The die was cast and I thought if the deal was called off it would be the equivalent of pleading guilty. However, I was able to find a new lawyer who agreed with my strategy and my luck pre- vailed again. "In retrospect, every 'crisis' I encountered, the arrangements were in charge of my Fairy Godmother. But by the grace of her, I would be on relief today, "Admittedly now there are thousands of peo- ple dependent upon me for their weekly paycheck. I am no genius and at least a dozen times in my lif e if I had gone east instead of west the show would have been stranded in Podunkville. "The only reason I own 100 per cent of the stock of my 'empire' is that no one with $100 would invest in an impossible undertaking. My own brother spent hundreds of hours giving me valid reasons why I had attempted an impossibil- significance in the color. "I have them tailored exclusively for the sales leader who marched for me." On a crest is the Latin inscription meaning "Fidelity and Hard Work." In other words, sell insurance and win a garish blazer. But it was astounding as the week wore on to see the pride that hundreds of full-grown men took in wearing the MacArthur blazer. It9s something like the Army's airborne insignia or the high schoolerys monogram sweater or the buckeye decals on Ohio State's football helmets. "I marched for MacAr- thur and sold hell out of that insurance. Lookee There was another green blazer oil the plane. It belonged to Dick Williams, who had quit Oak- land's Charlie Finley after winning a second World Series baseball championship. Williams hadn't sold insurance but he had been hired for various MacArthur promotional endeavors, mostly intra -company. Williams' job on this trip would be to auto- graph everything from baseballs to bar napkins and deliver little inspirational messages like "keep in there pitching." Beyond that he was having a rare holiday with wife Norma and exhib- iting exceptional skill at the blackjack tables. Williams shows a deep respect for his Singer Is- land neighbor and clearly the feeling is mutual. There is some magic in the MacArthur personal- ity that wins him fierce loyalty and attracts strangers easily. He would have made a good in- surance salesman. As the plane taxis �urw�o - --''-~e stewardess. '---- When Mc Mac stepped off the plane in the seat belts, please." Mr. Mae grumbles about gov- 100 -degree noontime heat of Las Vegas, he ernment regulation. "All these things do is run up couldn't see the snow-capped mountains only the price of a car. I learned to fly in the '20s in miles away. He was surrounded by 12 of the big - less than 30 minutes and now it takes twice that gest bruisers in Nevada who had been dispatched long to read the passenger regulations." The to guide him safely through the airport - He'd man - stewardess returns, "Gotcha, you've got to fas- aged to survive a cross-country trip with one ten. 9' chicken ~_~__� 5U all UVW At each stop, the regional bosses led the top sellers to the great man and he hammed it up with every one of them, He'd shake hands and wisecrack and when a woman would be led his way, which was frequent, he)d announce, "We don't shake hands with women." And then there'd be a bear hug and a big kiss. "Arent you a little old to be pinching fannies?" he was chided later. "I've never pinched a fanny ill my life," he said. "However, I've patted my share." If the Vegas trip is an accurate indicator, shares come in large doses to John D. MacArthur, Surely some of those employes were there be- cause they thought they had to be, sort of like the civil servants who are mustered to cheer for a deplaning president. But MacArthur seems to be more legend than boss in his insurance empire. The Little Leaguer)s Mickey Mantle. The guy who got filthy rich by peddling.' policies for peanuts during the Depression. "A down payment of what you've got in your pocket and then so much a month." They may have been induced to come, but the joy was spontaneous, and they squirmed to get near enough to be photographed with him. "Who's paying for all this film?" he groused. There is a casino in Vegas named Banions that puts $1 million on display. People stand in line to have their picture taken with the million bucks. Maybe it's the same psychological lure with a billionaire in baggy pants. "If it will make you happy I'll put it on." The DC8 points into the sky as Mr. Mae pats the stewardess plopped down at his side. There's no reason for her to believe this charmer's assets include anything more than memories of his rip- snortin' youth. Arrangements had been made for Mr. Mae to deplane at the stopover terminals along the route to Vegas. The pilot said the Tampa stop would last 20 minutes, so Mr. Mac and Wiliiams were the first out the door. What possible kind of pro- motion could possibly be arranged in a short Mr. Mae was led into a reserved airport lounge. As he entered, a mighty roar drowned out the whining jet engines. "Welcome, Mr. Mac," or "Hi Skipper" cries rang out. Surely they jest. But inside, gathered in a semi -circle were about 65 people, many tooting horns and wearing funny hats and showing the giddy kind of enthusiasm as a bunch of pre-schoolers at their first birthday party. And there were a dozen or so of the sacred green coats . In New Orleans there were 33 more waiting at the airport. They brought him a key to the city and made him an honorary citizen. In Houston, there were about 75 more, some of them from as far as the coastal city of Beau- mont. "Welcome to Greatville" blared one sign. Some of the banners were 20 feet long. ity. By all the rules of the game, Bankers Life & Casualty Co. should have gone down the drain 40 years ago. The only explanation I can offer is luck." MacArthur says he had challenged the estab- lishment and come up a winner. There isn't any- thing unusual about it. Armed with a battalion of attorneys, he's the one guy in Palm Beach County who will spend a lifetime fighting city hall. And win. As likely as not, he once owned the property where the city hall stands, whether it be in Lake Park or North Palm Beach or Palm Beach Gar- dens or Carol City in Dade County. After he sells enough homesites, he ends up in a wrangle over the sewers, or the water company or some envi- ronmental matter. He once told an interviewer for nation's busi- ness: "There are some bearded jerks and little old ladies who call me a despoiler of the environ- ment. But I believe I have more concern than the average person. For example, I built Palm Beach Gardens without knocking one tree down. I moved the biggest tree ever moved in Florida — they said that it weighed 80 tons, though I doubt it. That got quite a little publicity -- a full-page pic- ture in Life. And it's growing beautifully now. We nursed it and took its blood pressure every morn- ing and it came out fine. If I find unusual trees, I have them moved onto the golf course. A lot of people don't want a tree anymore and rather than have them chop it down, I will move it for noth- ing. "Many environmentalists today are ob- structionists and just throw rocks in your path. They are trying to keep people out of Florida. To me that is un -Christian. The poor slobs in New York and New Jersey saved their money, and bought a little piece of land down here, and now the obstructionists say they can't use it." MacArthur believes in using his land. He's been battling for years over development plans, including some fill, on Big Munyon Island in the lake off North Palm Beach. He tells of traveling to the Four Ambassadors Hotel in Miami one morning to see Gov. Reubin Askew and -being told the state would be happy to negotiate if it lost in court. MacArthur isn't very fond of Askew. If pushed, Askew might say he finds Mr. Mac's cussing and drinking a bit hard to take, too. How does Mr. Mac show his distaste? He sent Askew a campaign contribution last year. Askew returned it, saying it was more than a self-im- posed $300 limit. MacArthur sent another check for the $300. Why such a contribution from a man who says he had stayed out of gubernatorial poli- tics since Blid Dickinson's first try? Who knows? MacArthur is a close friend and business as- sociate of former Sen. Jerry Thomas, Askew's de- feated opponent in 1974. Bankers Life owns a sub- stantial amount of the banking chain that Thomas heads. MacArthur gave Thomas his start in the banking business when he foreclosed on a Lake Worth bank. So why donate to the Askew cam- paign, while professing to be independent of the Thomas campaign? Who knows? How do thew, political skirmishes and court battles affect hire locally. Who.: knows? But here is his assessment. "Palm Beach County is really just a consoli- dation of 50 small towns. Locally I have a lousy image -- 99 per cent of the people who violently hate me have never met me and don't know any- one who has ever met me. Many years ago a county commissioner in a meeting where a dozen or more people were present said to me, "I know you are a crook."' I gasped and asked how he knew it. He replied, No one could honestly make the amount of money you have.' I have considered hiring a reliable survey team to get the opinions of the local people and then ask them how they formed their opinion. I have never bothered because I am sure they hate anyone who has accumulated money. "As you know, I have never publicized any- thing I have done for the charities, with the single exception of the World Cup Golf Championship and that was publicized by others. I addition to picking up all the expenses of most of the teams from the Far East and Europe, I gave the gross receipts from the tickets to the charities. I rounded it out to an even $100,000." MacArthur is a substantial giver to charities, although he professes otherwise. "Every time I give somebody something I am besieged by a thousand others with their hands out. Frankly, I don't believe you can buy your way into heaven and prefer not to be known as charitable." He responded to one recent appeal with the honest appraisal that his tax benefits were exhausted for the year. Mr. Mac professes little concern for his im- age, but he clearly is concerned. He'll sit for hours on the carousel at the Colonnades and an- swer the questions of newsmen. He loves to tell the old stories. Like the one about how he bought a World War II surplus B25 that had been used by Gen. Hap Arnold. And then sold it to Howard Hughes for nearly 10 times what he paid for it. Or how he spent $500,000 on a gaudy sign at his Frontier Hotel on the Vegas Strip. The neon supposedly was interfering with Hughes' sleep across the street at the Desert Inn. Hughes sent an emissary to buy the sign and MacArthur ended up selling him the whole hotel. There are some conflicting details about Mr. Mac's World War I flying exploits but most ac- counts, agree on his court-martial for going AWOL. MacArthur had joined the Royal Canadian Air Force because he was one of the few pilots on the continent. He was recuperating from an in- jury (some say he was hurt while stunt flying) and was given a recruiting assignment. He went AWOL. He went to New York, met up with a journalist acquaintance of the female variety, and time passed. Lt. MacArthur decided to stow away on a troop ship bound for Europe. He says he got aboard by sneaking a glance at the Isar ifest over the shoulder of the man ahead of him. An armada of ships set sail. An hour later, the whole fleet stopped. A head count showed there was one person too many. It could have been a German spy. After a futile search, the ships were ordered back to port. At that point, MacArthur trudged up to the bridge and reported, "I have found the spy. It's me." The teenager was returned to harbor by PT boat and placed under arrest, to be returned to Canada to face the court-martial. But his journal- ist friend heard and wrote a tear-jerker about the valiant young officer who went AWOL to get to the war, not run away from it. MacArthur was acclaimed. Rather than the stockade, he was dispatched on a tour to help sell war bonds. They certainly picked quite a sales- man. The episode sounds implausible, but so much about John D. MacArthur is implausible. And un- predictable. I decided to use my open ticket to return to West Palm Beach on the same plane with Mr. Mac. It would give me another seven hours to find out what makes him tick. "Yes, sir, the Na- tional agent told me on the phone. I have two tourist seats left on that flight." I reserved one. I arrived at the airport separately. I checked with the boarding agent. Yes, there wa4 a reser- vation for Mr. MacArthur. "FIRST CLASS." What? How could he do that? Could I switch mine? "Certainly," said the agent. "It only costs ... "� `Fine, I'll take it." Mr. Mac and his entourage arrived nearly at flight time. I told him I'd changed my ticket be- cause he was stuck in first class. "Not really." he said, somewhat ominously. "Thank you, Mr. MacArthur," the agent was telling some stranger. I whirled around. The lightbulb went on. Mr. Mac had walked up to an- other man, asked how he'd lake to fly first class, and then traded tickets. "You don't think I'd let all my people see me up front while I ask them to ride the back, do you? I'm not better than any- body else." I rode first; class to Tampa while John D. MacArthur flew tourist. Surely there's a lesson in there. There are lessons in most of what he says and does. Yet he is almost unfathomable. What pushes him out of bed at 5 a.m. and keeps him traveling around the country in the back of airplanes? "I believe in doing an honest day's work and always have. How do you tell what is a day's work? You count your markers. A marker may just be a $10 bill. But at the end of every day, you count your markers. And if you have more than you had yesterday, you've probably done a day's work." To be 78, with all those markers, must have made it a happy birthday for Mr. Mac. a John D. as a Royal, Canadian Air Force Pilot Q A Roster of Famous Guests Mr. Mac has always liked to surround (clockwise) Burt Reynolds and Dinah himself with well-known personalities, and Shore, then Congressman Gerald Ford, his Colonnades Hotel in Palm 'Beach Helen Hayes (wife of his late brother), an Shores gives him a place to entertain. A older Helen Hayes with Perry Como, and • sleep -tousled Bob Hope gets his morning actress Lillian Gish are pictured with coffee from John D. (upper left), and MacArthur. IIIIIIII r 7 =777777�� Staff Artwork by Char Searl M—Palm Beach Post -Times, Sunday, March 9, 1975 The Pena'Ity John. D. says a friend once passed, along these words to him and he's kept them handy ever since In every field of human en- deavor, he that is first must per- petually live in the white light of publicity, Whether the leadership be vested in a man or in a manufac- tured product, emulation and envy are ever at work. In art, in literature, in music, in industry, the reward and the punishment are always the same. The re- ward is widespread recognition; the punishment, fierce denial and detraction. Jealousy does not protrude its forked tongue at the artist who produces a commonplace paint- ing. Whatsoever you write, or paint, or play, or sing, or build no one will strive to surpass or slander you unless your work -be stamped with the seal of genius. The leader is assailed because he is a leader, and the effort to equal him -is merely added proof of that leadership. Failing to equal or excel, the follower seeks to depreciate and to de- stroy — but only confirms once more the superiority of that which he strives to supplant. There is nothing new in this. It is as old as the world and as old as the human passions. If the leader truly leads, he re- mains the leader. That which is n good or great makes itself known, no matter how loud the clamour of denial. That which deserves to live lives. —Author unknown