Evening star., 1932-03-31
'KREUGER & TOLL
ASSET FIGHT IS ON
American Interests Seeking
to Separate Companies in
Struggle for Control.
BY WILLIAM H. sToNEMAN.
oecial Radio Dispatch to The Star.

Special Radio Dispatch to The star.
STOCKHOLM, March Silt is now
possible to state positively that the
financial statement presented by the
late War Kreuger to the public January
| 20, showing Kreuger a. Toll assets to
correspond to $50 for every 10o-crown
| debenture and share, did not correspond
with the true condition Of affairs
The statement issued by Lee, Higgin-
son & Co., of New York, last Saturday
limited at this, but 1t appeared incon-
ceivable that the match magnate could
have put his name to an irresponsible
| document.
The Swedish directors of Kreuger &
Toll are now understood to claim that
they knew nothing of the statement
issued in their name until after it was
published.
New Facts Uncovered.
The pessimistic statement issued by
| the swedish commission investigating
the Kreuger affair apparently was only
a hint of the revelations to come. AS
| the days go on the commission, it is un-
derstood, is learning a number of start
ing facts regarding Kreuger'S manipu-
lations, which led to his downfall. Not
| only has it been discovered that Kreuger
lost gigantic sums in an attempt to sup
HSHS A-Ao SAAoA 90 anu NCDJilLNINS UIl lIle
market, but he lost even greater sums
in other ways
While the total losses Of Kreuger &
Toll are unknown, it is indicated that
the kreuger financial debacle will be
/ one OF the worst in history.
Ihe stage Is now set for a giant in
ternauonal contest between the Swedes
who are determined to keep the Kreuger
q Toll organization together until bet
ter times may enhance the value of its
assets, and foreign interests, who seem
| determined TO grab the leavings as
quickly as possible.
The principal battle promises to be
/ waged about the International Match
| Co, an American concern, in which
the Swedish Match Co. holds the ma
Jority stock. The Americans, 1t is in
dlcated, are anxious to avoid having
tne1r company thrown in the Kreuger &
Toll melting pot and, with this in view
are seeking to separate it from the
/ Swedish concern.
Tne SWedes are understood to feel
that maintenance of the Connection
between these two companies is utterly
necessary to the future of the Swedish
matcn monopoly system, and certainly
70 the future OF the Swedish Match Co
Iney are prepared to resist efforts tn
force separation.
Inasmuch as the majority of Kreuger
| q Toll debentures are held in the
United States and any holder of de-
oentures may force the company into
bankruptcy if the per cent annual
dividend is not paid-as is the case
this year-the Americans have a strong
weapon in their hands.
Oppose Forced Liquidation.
While it is true that Kreuger a. Toll
IS now enjoying a moratorium, which
VIII be extended upon its expiration
| April l, American demands for liuuida-
ton OF the company would cause con-
siderable embarrassment to Sweden.
The Swedes' argument is that forced
liquidation at this time would leave the
shareholders with nothing, while a calm
reao1ustment of the concern with inter-
national cooperation may save them
The Swedes, it is understood, would
welcome the formation of an Interna-
t1onal Committee to supervise the
Kreuger & Toll reorganization.
Representatives of the New York fl
! nancial houses of Lee, Higginson &
Co. and Dillon, Read & Co, including
Donald Durant and N. P Hallowell. di-
rectors in Lee Higginson. are now in
Stockholm awaiting further informa-
ton from the investigating commission.
Copyright, 1922