The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-09-16
insult CRASH
/. COSTS PUBLIC
BILLION Loss
Tragic Story Told in Red
Ink by Middle West
Company Receivers.
PROBE PLANS MAPPED
States Attorney and u. S.
Judge to Cooperate
in Inquiry.
BIZ United Press

BIZ United Press
CHICAGO, Sept. 16.-Ths tragic
story of where approximately $1,000
100000 of the investing publics money
went in the crash of the middle west
Utilities Company was told in red
ink in a receivers report submitted
to the federal court today.
The report covered the giant
insult holding company, but not the
f1fty-four operating and Subholding
companies. 1t deals with the period
from Jan. /, 1890, to April IA. 1882,
when the company went into re-
ownership.
A loss to investors of more than
STA 900 900 in common stock, alone,
was indicated in the summary of
auditors for Edward N. Hurley and
Charles A. McCulloch, receivers. Nc
Culloch commented:
THE audit speaks for itself In
the opinion of Mr.. Hurley and my
self. the future of the company de-
pends on change in business con-
ditions and on good management"
No Criminality Evidence
While the receivers and their at
torneys we're en- route to Federal
District Judge Walter c. Lindleys
chamber to confer regarding filing
of the report, Lindley and States
Attorney John A. Swanson complet-
ed brief conference looking to an
inquiry into the entire insult utili-
ties empire.
I'VE have found no evidence of
criminality so far Judge Lindley
said.
Swanson's comment was: We dis
cussed the entire insult situation,
but found no evidence of law viola
ton. We reached an agreement to
collaborate, the state to assist the
federal government in any matters
under its jurisdiction, and the fed
eral government to aid the state
in like manner"
May Save Some for Public
Judge Lindley expressed hopes
that most of the potential loss to
investors in both the Middle West
Utilities Company and its subsid-
larry, the Mississippi Valley Utilities
Investment Company could be pre-
vented.
He said he saw only a gloomy
prospect for two other insult COM
panies-Insull Utilities Investments,
Inc, and the Corporation Securi-
ties Company.
1t was pointed out that the
common stock of the Middle West
company is carried on the books
at $144.809 900. The $714000, 900 to-
tai is shrinkage from peak prices
Subsidiary Chief Ousted
Before the Middle West Utilities
report was submitted, attorneys for
that company and for the MISSISSIPPI
pi Valley Utility Investment Com
pany, a subsidiary, agreed to turn
over control of the American Cen
trail Holding Company, a s500O,OO0
or $6,000000 concern, to R. w. Nor
rison, San Antonio, Tex.
The American Central holds
stocks in Mexican operating COM
panies. The move was made, it was
explained, for the benefit of stock
holders in the parent concerns.
Resignation of Marshall SampselI
as president of the Central Illinois
Public Service Company, SUBJ
sidiary, and as a director of the
parent company was on demand OF
the receivers, the report revealed.
Both Brothers Out of U. 5.
According to the receivers, Samp-
sell had taken 1000 shares of IS
preferred stock, depositing his trust
receipts. After his resignation, the
report said, Central Illinois &C
CURED 1000 of the shares which had
been held on joint notes of Sampsell
and Martin J. insult. These shares
were acquired by purchase of the
notes. Claims have been filed with
bonding companies on the remain
ing shares.
Samuel insult, guiding genius of
the maze of utilities companies and
their holding concerns, is in Paris.
His younger brother. Martin, who
acted as president Of many of the
companies and who apparently was
a large speculator in the stock mar
ket, Is in an Ontario village.