Evening star., 1932-10-19
insults, Indicted, Arouse New
Interest in Financial Giants

Proceedings abroad based upon the
desire of authorities in Chicago to bring
Samuel and Martin insult before a
court, because of tie collapse of great
combination of public utilities, remind
the country of a period before the de-
preston, when such business giants
held high place in the public esteem.
There Is speculation as to how success
full the methods employed would have
been if the world had not passed
through the depression.
The Des Moines Tribune is reminded
Of the time, in June, 1880. when "a
storm of protest arose in the country,
because it was learned that Samuel In
sull had attempted to censor a speech
prepared by Ambassador Sackett for de-
livery at the world electric power con-
gress in Berlin" The Tribune COM
ments: 1T seemed that the Ambassador
had planned to make some mention OF
the spread between production and re-
tail costs of power. Mr.. insult, to be
sure, had no real authority over the
envoy, but his name was so awe-in-
spring in the world Of industry and
finance that Ambassador Sackett phoned
the Berlin newspapers and tried to can
eel the original text of his address.
Now that Mr.. insult is in Europe with
a two-billion dollar utilities collapse be-
! hind him here, the pressure that he
sought to bring upon Mr.. Sackett Is a
little more understandable.
Much that was concealed by the
boiling tide of three years ago now
stands forth to mock the shrewd men
of business of that fantastic era" says
the Baltimore Sun, with references to
the "pyramiding' which passed for
sound business during the BOOM" and
the conclusion: Left high and dry on
the beach after the tide runs out, the
big fish of finance are prey for davis
their heydey most of us accepted what
they did without question Some of us
even denounced as Bolsheviks those
whose sensitivenesS was little keener.'
X X
"Insull and insult are kings in exile"
declares the Houston Chronicle, with
the statement as to the reversal in
their fortunes: The rise and fall of
the House Of insult will some day form
fascinating chapter m some monu-
mental work devoted to the various
phenomena Of financial expansion dur
ing the halcyon days of 1924-29. The
collapse Of the vast holding companies
which bear the name of their founder,
the indictments found against them in
Chicago as q result Of the crash which
followed their overextension, the hur-
ried flight and evident intent to place
themselves beyond the reach of prose-
cuticn, all will bear out the conviction
held by millions during the past decade
that the financial operations OF large
combinations Of capital should be rig
idly inspected and regulated"
X
"Ivor Kreuger and Samuel insult
both controlled properties valued at
billions, a condition hitherto unknown
in the history Of the world. but their
rise seems to have been too rapid"
observes the Peoria Star, with the con-
clusion that they were unable to
maintain the flimsy fabric of their
financial structures" The Texarkana
Gazette holds that "the foresight, the
skill, the financial acumen with which
Mr.. insult had built up his industrial
empire had served merely to erect q
top-heavy edifice which went down
with Q terrible crash when o stiff gale
blew" That paper continues: During
the prosperous years Americans got
into the habit Of overestimating the
value Of financial methods. If a man
was able to tie holding companies to-
gether in an endless chain he was
claimed as an industrial wizard. 1t
was assumed that the greatest men
were Naose who knew how to do the
most tricks with money and credit.
Here's q new light on things. The col
lapse of the insult holding companies
shows that business Of pyramiding and
interlocking Industrial securities Is
strictly . fair-weather game. It's lead
ers are not quite the giants they
seemed"
Pointing out that "the insults sacri-
decd practically everything they had. "
ths sst ~ onsrst Nsvs adviesa