The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-10-11

tnlru OF SIX stories on the rise
and fall of Samuel insult, public
utility magnate, who has been
called "the worlds greatest fail
ure.'
Copyright, 1892, NEA Service, 1nc.)
Chicago, Oct. 1l.-Samuel insults
climb to control of public utilities
empire that was worth $4,000, 900 900
ct its high tide, required so years.
His fall took just about that many
days.
On April Is. 1882, insults vast Mid
ole West Utilities company, operating
in 80 states, went into receivership.
On June 6, the 73-year-old Napoleon
Of power abdicated.
He resigned as chairman of the
commonwealth Edison company. the
Peoples Gas Light & Coke company
end the Public Service Company of
Northern Illinois, three of the larg-
est utility operating companies in
the world.
lie resigned as one Of the receiv-
ers OF Middle West Utilities. He re-
signed from IS chairmanships. IS d.
recsorates and II presidencies. For
teree hours insult sat at his desk
signing designations.
When Samuel insult finally laid
aside his pen he had nothing left
but three yearly pensions of $4,000
each, granted him by his three ma or
operating companies.
The last days of empire saw a
vastly different Samuel insult from
the hard-headed, autocratic financial
tyrant to whom nobody in Chicago
had dared say NO"
Back to the Bottom
When reporters called at his lux
urious office for a farewell inter-
view they were greeted by a care
worn old man whose hollow smile
ana trembling fingers indicated the
strain under which he had labored
in his vain effort to save his COM
panies. Asked about his future
plans, he was affable but reticent.
AS a closing question, someone in
quired about his health.
Well replied insult, II got a good
sleep last night; I feel pretty good
today
Something in his tone seemed to
imply there had been other nights
probably many-not so restful.
Later, an associate told reporters
he had heard insult say the day be-
fore: Il have gone from the bottom
to the top and now I am at the
bottom again. I only hope will be
able to keep roof over my head and
care for my wife"
There is no mystery about insults
downfall. The real mystery is how
he managed to keep his fantastic
pyramid of holding companies stand
ing as long as he did in the face of
the worst stock market decline in
history
insult had fought desperately. He
had thrown in his own $l00OOOOO0
fortune. In perhaps the most hectic
chapter of trenzied finance in his
tory, he manipulated, borrowed
loaned, exchanged millions of dol
lars between his various companies
in manner that now has given au-
differs one of the most intricate and
complicated financial tangles on rec
ord. He saddled stock on his en-
ployes and ordered. them to go out
and sell 1t. He borrowed heavily
from bankS-millions on millions of
dollars.
A Sudden Crash
In the years when he was building
his giant chain, insult had been
called "the greatest money raiser in
history" In the end, this ability
proved his undoing. For he contract
ed such burdens of debt for his in
vestment companies that they even
tually collapsed under their own
weight.
When the end came, insult went
down with his ship. Chicagoans tell
you they are certain he lost every
dime he had.
The crash came with deadly swift
ness. In brief, here is the story:
Last spring, Middle West Utilities
Co. found itself unable to meet $10,-
100000 in short term notes. insult
frantically appealed to New York
bankers but, at last, his credit
had dried up. He could get no more
money.
So a Chicago printing firm, to
which the $4,000, 000! 900 Middle West
Utilities owed an $4,000 bill, threw
this industrial giant into receivership
and the far-flung insult empire top
pied.
Middle West was the cornerstone
on which the insult pyramid rested.
One by one, the other tightly-inter-
laced h gliding companies dragged
each other down.
Among the first to fall were the
great superholding companies, insult
Utility Investments and Corporation
Securities, Inc, which capped the
peak of the pyramid. They repre-
scented control of the great insult do
main.
Losses In Millions
When, the other day, auditors for
the receivers of insult Utility Invest
ments completed five-month ex-
animation of the books, they report
ed this condition had existed as OF
April 16:
insult Utility Investments was
hopelessly insolvent. It owed nine
times as much as it owned. It had
s24.473.36 of assets with which to
pay $253, ,341 liabilities, q deficit
of $226, 100000.
The reason for all this was clear.
The auditors balance sheet showed
this investment trust held securities
for which 1t had paid $237 ,892, $50
and which, at current prices, had q
market value of $50, 404 1867, shrink
age of more than $207 100000.
AS yet, there is no auditors report
on Corporation Securities, Inc. The
latest available data is the company's
balance sheet of Dec. 81, 1881. This
showed investments with book
value of $145.455,706 and current
market value of $33 $40 ,252, shrink
.e ,,,oro thoy, All mn mn