Evening star., 1932-09-23
Investors Face Loss of All
Money Through Court
Proceeding.
NAMES OF Favored
STOCKHOLDERS" SHOWN
Many Given Opportunity to Buy
at $12 a Share Before Securi-
ties Were Listed.
BY the Associated Press.

BY the Associated Press.
CHICAGO, September 23.-Corpora-
ton Securities Co. and insult Utility In
vestments, Inc, the two insult invest
ment trusts in which the public had
100000, 900 invested, were adjudged
bankrupt today by Federal Judge Walter
c. Lindley.
The DEGREES, which Judge Lindley had
indicated last night he would sign, were
filed with the clerk of United States
District Court during Judge Lindleys
absence in Danville, his home
1T seems unlikely" Judge Lindley
declared, that the stockholders will
receive anything on their investments.
Both companies have been operating
under equity receivershipS since April
l6. Judge Lindley, at his home in
Danville, Ill, last night consented to
act on a bankruptcy petition against
the concerns presented by a Chicago
law firm which represents a group of
bondholders in both companies.
Earlier in the evening the receivers
for the Corporation Securities Co. filed
their report, in which they held that
the investment trust was "hopelessly
insolvent."
The assets Of the once $4,000. 900
concern were so meager. the receiver
reported, that they were unable to meet
the expense Of having an inventory
made
There were bales and bales of worth
less stock certificates in the treasury
when we took possession April 16," they
reported. The only assets convertible
into cash were 10000 in tax anticipa-
tion warrants"
Frantic Effort to Save Company.
Through the maze of statistics con-
tanned In the report could be traced the
last desperate efforts Of Samuel insult
to save the tottering company. The
statement of liabilities Indicated he had
obtained succor from banks, from
afllllated companies, and from manu-
facturers with whom his companies did
business. Then. with other sources ex-
hausted and the market value of the
company's securities steadily declining.
he had pledged his own credit in a last
vain attempt to stave of disaster.
Yesterday was replete with develop
ments in the investigations being con-
Quoted into the affairs Of the companies
once headed by Samuel insult, and his
brother, Martin, now both voluntary
exileS in foreign lands.
States Attorney John A. Swanson
made public, without comment, a list
of 205 favored investors in the stocks
of the insult Utility investment, Inc,
a $3.50 ,000, 900 enterprise.
With the list was attached a COPY OF
an agreement purportedly made in
January. 1929, by Samuel insult and
the 205 persons whereby they were per-
mitted to purchase 250,OOO shares Of
insult Utility Investments at Sl2
share. A few weeks later the stock was
first offered to the public on the Chi
coga Stock Exchange at s27 a share.
Later, in the same year, before the
stock market collapse OF October, the
stock reached its peak of STAT a share.
The purchasers, however, were bound
in the agreement not to dispose Of the
stock for two and one-half years with
out first offering it to the company at
its market price. This provision, how
ever, was referred to by Assistant State
Attorney Charles Bellows as "a joker"
Prominent Investors.
The list Of persons and firms and
the number of shares allotted them as
Continued on Page 2, Column IL