The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1932-04-05
Kreuger concern.
BY BURCK

The Kreuger trust acquired special import
ance on account of the State match monopolies
which it acquired in return for loans. They
best characterize the parasitic character Of the
trust and reveal in the most striking manner
the close connection between the economic and
political interests of imperialist nce-capital
The following is survey to date of the Kreu-
ger match monopolies and State loans:
1925 Poland: million dollars; 1880 renewed,
32.4 million dollars monopoly for production,
wholesale trade and EXPORT.
1926 Greece: million Pound Sterling (non-
opoly for production and import. Peru, one
years agreement, 100000 pounds Sterling (mon-
poly of production and trade.
1929 France: rs million dollars import OF
about one-third Of consumption, supply with
machines and raw materialS). Ecuador: 8 mil
lion dollars monopoly Of production and trade).
Bolivia: million dollars monopoly Of produc-
ton and trade).
1928 Esthonia: II million crowns monopoly
Of production, sale and export). Hungary: SO
million dollars monopoly of production and
wholesale trade. Yugoslavia: % million dol
lars monopoly OF production and whole trade)
1929 Rumania: 80 million dollars monopoly
Of production and wholesale trade).
1880 Germany: 125 million dollars Swedish
German monopoly company. Lithuanla: 6
sale trade and exporD Danzig: l million dol
lars monopoly Of production and wholesale
trade). Turkey: 10 million dollars monopoly
Of production and wholesale trade).
War Kreuger had affiliated to his trust a
number of banks. His oldest family bank is the
"Scandinaviska Kredit ABB" which he con-
trolled with a nominal SO million crowns share
capital. In addition he owned the "Stockholms
Inteckning GaranH A.B," the majority Of the
shares Of the Holl. KoopmanSbank in Amster-
dam (share capital 8 million florins), the ma
jority Of the Banque de Suede ct de Paris Share
capital 100 million frances and participated in
numerous other banks, including the German
zentral-B odenkredit (aleged capital IL million
crowns Warsaw and a second Amsterdam
Bank For the purpose Of carrying out his
great financial operations Kreuger founded in
1925 the Swedish American Investment Cor
poration" 100000 founders shares without NOM
inal value Of which the Kreuger och Toll pos
sesses 270000). and the IN. v. Financielle
Maatschappij Kreuger och Tolr' (share capital
10 million florins. OF which 1870 are in the pos
session Of Kreuger}, Consequently his financial
operations we're more and more confined to
these two companies, te., to the Dutch and the
American money market.
The rapid development Of the trust however,
was possible thanks only to the circumstance
that Kreuger, in addition to his own bank in
Stitutes and financial companies had the great
est support of international finance capital he
was in close cooperation with the Deutsche
Diskonto Bank with Lee Higginson & Co.
RockefeIler), Credit Lyonnais Paris; in parti-
cular he had very close connections with the
American Rockefeller group; but he also estab-
lished good relations with the Morgan trust.
The CasYces ~ the col1af,Se NJ tina KreIYoer
Trust are at present still yelled in secrecy. 1t
it generally known that both the ore and the
wood pulp companies were seriously suffering
from the lack Of capital. But 1t may well be as
sumed that gigantic losses have occurred due
to the disastrous decline Of production.
It is highly probable, however, that the losses
on the loans and other financial business will
decide the situation of the Kreuger trust 1t is
known that all the other South American States
are insolvent, and even If Kreuger in his denial
of August, 1881, categorically declared that all
the interest on the loans had been paid, never
theless one must be somewhat skeptical towards
this statement. 1t is also hardly likely that
Hungary, Rtrnania Greece and Yogoslavia, all
OF which states are In great financial difficult
ties, have paid the interest on the Kreuger loans
At the present time 1t is by no means possible
TO survey the results Of thee ollapse Of the
Kreuger trust. One thing is certain; Swedish
capitalism is very seriously shaken The Swedish
government has therefore decided to grant a
moratorium on the debts Of the Kreuger con-
Germs. But 1t Is probable that q number of
other countries especially the U.S.A., will feel
the effects of this gigantic collapse.
The crisis OF capitalism has caused the over
throw OF q powerful world trust Mene-tekel
Tor The capitalists Of Az oountr1eea