The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-04-27
Cash Unused Articles Through
EATON OUT AS
HEAD OF HUGE
HOLDING FIRM
Steel King Quits as Result
of Stockholders Suits;
Banks Step In.
BIZ United Press

BIZ United Press
CLEVELAND, April 27.-Cyrus S.
Eaton, who made a spectacular rise
from a divinity student to one Of
Americas leading financial figures,
has resigned as the guiding hand
and director Of Continental Shares,
Inc, which was organized as a
Sis, 100000 holding company by
the Eaton-Otis interests for his en-
terprises.
Eaton presented his resignation
rs chairman and director along
with those Of w. r. BurwelI as di-
rector and president, and M. J.
Mandelbaum and Philip Wick, as
directors They have been sup
planted by an entire new board
representing four Of the largest
Cleveland banks.
Although Eaton severed all rela-
tons with Continental, he is re-
tanning his vast holdings. Interested
in many utilities and steel organi-
cations, he is noted as one Of the
few men ever to oppose the forces
Of Wall Street through his block
ede Of the billion dollar merger Of
Youngstown Sheet and Tube with
the Bethlehem steel Corporation a
year ago.
DiVerts Brokerage Accounts
OTIS & Co., Of which Eaton is the
junior partner, has turned its brok-
erage accounts over to the E. A.
Pierce & Co. and hereafter will con-
fine its activities to a general IN
vestment trust. Eaton's associates
deny these developments are CO.
related.
Announcement of Eatons resig-
nation followed closely reports that
he had met with severe financial
losses as a result of the collapse
in stock market values, which af-
fected many Of his companies. Con-
tinental during the past week
reached new lows in its history.
1t is believed this may have led
the banking interests to accept the
offer made previously by Eaton to
assume direction of Continental.
The official statement said:
Can Meet Obligations
Even at the lowest quotations on
the New York Stock Exchange as
to Continental's holdings listed
there, and our judgment as to
holdings not so listed, Continental
has more than 100 per cent equity
over all its payable obligations and
liabilities"
George j. Bishop, Eaton's friend
and utility magnate, said Eaton's
retirement resulted from the recent
filing of several stockholders suits
charging irregularities and dissipa-
ton of funds under the Eaton man
agement.
In announcing the new arrange
ment whereby Pierce and Company
would handle their stock exchange
transactions, Otis and Company Of
f1cials emphasized they were con-
templating the segregation of their
investment and commission business
for some time and that it was in
no way influenced by the Contin-
entail reorganization.
Extended It's Interests
From the outset principally inter
ested in the utility field, Continent
tai Shares extended it's interests
last October when it increased its
voting stock to approximately 40
per cent in the United Power and
Light Company, a concern which,
with its subsidiaries and auxiliaries,
serves 1893 cities in the middle west,
southwest, south and in Brandon,
Manitoba, Canada, and boasts as
sets of perhaps 81, 500, 100000
Reorganization was preceded by
six suits within the last six months
by Continental shareholders against
Eaton, Continental Shares, Otis g.
Co., Industrial Shares Incorporated,
and Public Utilities, Lit, a company
which Eaton is charged with own
ing in its entirely, or in conjunc-
ton with members of his inmedi-
ate family. Five Of the suits were
filed here and the sixth in Mary
land, where Continental is incor-
porated
Charles S Wachner, Cleveland
attorney, filed three Of the suits, al
leging irregularities in the transfer
Of stocks and securities to the
amount Of approximately $4,000, 900.
All of the actions sought return to