Evening star., 1932-03-15
Everybody's S
Business
Economic World Likely to
Be Shaken BY Match
Kings Suicide - Headed
B,1l1on:Do11ar Interests.
BY DIR. MAX WINKLER.

Special Dispatch to The Star.
NEW YORK, March 15.-The suicide
of Ivar Kreuger, head of the gigantic
Swedish match trust, for the time be-
ing at least, is likely to have a far
reaching effect upon world economic
conditions
Within a relatively short period of
time Kreuger, an engineer by profess
! sion, built UP an enterprise, or rather
series of enterprises, with resources ag-
gregating well over billion dollars.
His interests were confined not only to
Sweden, his own country, but were
scattered throughout the entire world.
The nucleus of the Kreuger bubsiness
was the Swedish match company, which,
through aff1liates, produced and dis
tributed annually upward Of 20,000,-
900 900 boxes of matches.
The company began to assume an
international character during and after
the war.
BY taking advantage of the deteriora-
ton of exchanges which resulted from
the conflict Ivar Kreuger was successful
in acquiring at attractive prices various
| enterprises in a number of countries.
Thus he soon came to control match
concerns, iron and steel companies,
telephone establishments, real estate,
paper and pulp corporations, banks and
insurance companies, and a variety of
enterprises directly or indirectly afflli-
ated or identified with the match busi-
ness.
The work of Kreuger reminds one
somewhat of the activities of the late
Hugo SHINES, who also was successful
in creating gigantic enterprise, which,
like that created by the Fuggers of the
Middle Ages. welded greater power
than did many crowned monarch.
The development of the SHINES in
dustrial empire is in many respects sim
liar to that which characterized the sem
sational rise of the Kreuger combine.
The German magnate, however, did not
share the tragic end of his Swedish COL
league Whether it was the unusual
strain in connection with guiding the
destinies of his vast enterprises during
nomic history which caused Ivar Kreu-
ger to end his life will remain in all
probability mystery which few will be
able to solve.
Irrespective of the causes of his act,
the death of Ivar Kreuger is bound to
be felt very keenly both in Sweden and
abroad. In his home country steps
have already been taken to prevent
possible decentralization in the various
Swedish securities. especially those iden-
titled with the Kreuger interests. The
Stockholm Stock Exchange has been
ordered closed, and the King has been
empowered by Parliament to grant
moratoria on private payments when
the circumstances warrant.
AS regards the United States, it may
10 i7farncf m niyNf - tLn
$290000,000 which are estimated to
represent Americas stake in Sweden
the bulk comprises issues identified with
the kreuger enterprises. They include
the bonds and the preferred shares of
the international Match Corporation,
the common stock of which is owned
almost entirely by the Swedish Match
Co.; the bonds and debentures of the
kreuger d Toll Co., holding concern
for the various Kreuger enterprises, and
the shares of the Ericsson Telephone
Co., which, through exchange of stock,
is afhliated with the International Tele-
phone q Telegraph Corporation. There
also are understood to be outstanding
in the American market bank loans
which have from time to time been
arranged on behalf of the Kreuger
interests.
AS nisn as $6U,OOO,OVO.
According to some estimates, these
advances are placed as high as s80,-
000,0 900, secured by adequate collateral.
For months the shares of enterprises
identified with Ivar Kreuger have been
registering declines, SO that the latest
tragic occurrence is not likely to de-
press prices much further, unless there
is something radically wrong with the
combine, which does not, however, ap-
pear to be the case.
In this connection 1t is interesting to
recall that Kreuger had very substan-
tial investments in Germany, so that
the effect Of his tragic death is likely
to be neutralized materially there by the
highly constructive developments yes
terday.
The marked increase In the vote for
Won Hindenburg and the setback for
Hitler augurs well for Germany, and
leaves little doubt of the result of the
election on April 10.
rl-Lt