The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-09-30
GRAND Jury TO
PROBE insult
FIRMS CRASH
Action Will Be Started in
Next Week, States Attor-
ney of Chicago Predicts.
POOL LIST MADE PUBLIC
Favored Friends Given
Bargain Stock Include
Famous Figures.
By United Press


CHICAGO. Sept. 30.-Prediction
that a grand jury will be studying
the tangled finances of the Samuel
insult utility empire within a week
was made today by States ATTORNEY
John A. Swanson.
AS Swanson spoke, financial, polit-
lcal and social circles still rocked
from the surprise revelation of 3ls
names of prominent persons on a
preferred stock pool list.
Additional lists of persons. who
bought stock in insult companies at
less than the market price were ex-
pected to be made public in Federal
Judge Walter G. Lindley's court to-
day or Saturday.
The states attorney. who for the
moment was in the fore in the in
VeStlgation as the hearing in fed
eral court was delayed. SURVEYED
reports of his investigators on the
Mississippi Valley Utilities Company
ana termed it "a dumping ground
Tor the insult subsidiaries.
1t was understood that the name
OF Samuel insult ST.. is due to an
pear Saturday in notes of the in
veStlgatorS working on transactions
deemed worthy of study.
Subpenaes to Be Asked
Attorney Lewis F. jacobson, rep
reSenting petition creditors, siad to-
day that he held by his determine
ton to ask ''in due time" that sub
penaeS be issued for Samuel insult.
his brother Martin and his son
Samuel Jr. The brother is in Can
ada and the father and son are in
Paris.
Jacobson said that should the
subpenaeS be issued and ignored. he
would ask the right to take deposit
lions from the former heads of the
utilities pyramid that crashed with
an estimated $1,000 5000, 900 loss to
investors.
Announcement of the second list
OF 3l8 prominent politicians, bank
erS, lndustrialists and officials ia
vored by insult with an opportuitv
to purchase stock in one of his now
defunct enterprises at bargain prices.
was revealed that all who partici-
pated in the 100000 syndicate lost
their investment.
Well-KnOwn Names Listed
The list was studded with welI-
known names, among them, Mayor
Anton j. Cermak; Melvin A. Traylor.
banker; Owen D. Young; Pat Roche.
chief investigator of the States at
torney'S office; Frank L. Smith. Re-
publican national committeeman
the late Edward F. Swift, meat
packer; Joseph Tumulty, president
Woodrow Wilson's secretary; James
Simpson, new. head of the insult
operating companies; Clement
Studebaker, industrialist; Rosa
Raisa, opera star, and General
James A. Ryan.
Others were; John Hertz, capital
Ist; George M. Reynolds, banker;
Michael Igoe, former Democratic
national committeeman; David E.
speaker of the Illinois
house Of representatives; William
Lorimer, former United States SEN
ator, and Stuyvesant Peabody, coal
The syndicate purchased $4,000
shares Of insult Utility Investments,
Inc, at a price of $50 share. The
market price at the time was $59.25.
Each paid in per cent of the pur-
chase price and there was a later
Is per cent assessment.
Seek to Recover Funds
The syndicate was closed last
February with sale of the stock at
81 Ga share All who participated
,ook 20 per cent loss.
Many, however, did not pay the
second assessment, and creditors of
the bankrupt corporation said they
would seek collection to add the
money to the nearly vanished as
sets of the corporation.
Among those listed as members
Of the syndicate was Oscar Hewitt,
for fourteen years a political and
economical writer for the Chicago
Tribune. The Tribune, immediate-
y after announcement of the list,
announced the release Of Hewitt
with deep regret"
mo one on this newspaper was
aware of the fact he was one of
,he subscribers to the syndicate"
,he Tribune said. HE had SUBJ
'cribed without thought of the inn
olication that in doing so he was
a favor from the insults