Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-09-25
insult COLLAPSE
HITS THOUSANDS
Investors and Former En-.
pIoyes of Utilities Magnates
Take Heavy Losses.
Special Dispatch to The Star.

Special Dispatch to The Star.
CHICAGO, September "a (N.A.N.A).-
Reports Of auditors of the Inflated insult
utility and securities companies have
furnished Chicagoans topics for CONVEX
sation Of late.
Amazing disclosures regarding COM
plete collapse of several Of these con-
Germs, the immense losses involved and
the revealing light thrown on certain
methods pursued IN promoting them
have interested not merly the public but
omcers Of the law.
The possibility that criminal proceed
ings may be justified III some instances
is being investigated by States Attorney
Swanson, and the Federal district attor-
ney, Dwight H. Green. has been dis
cussing significant angles Of the insult
debacle with the authorities at WASH
ington.
Thousands Suffered.
Thousands Of persons with faith In
the genius of the insult brothers-
Samuel and Martin J.-have suffered
severely. Thousands of others who
were en- the insult pay rolls. and more
or less involuntarily subscribed to stock
in their ventures, face hardships today
because Of vanished investments that
represented lifetime savings. Often they
borrowed in order to make the required
payments.
Many stories are told Of the strenu-
Gus methods employed when danger
faced the insult ventures and financing
became difficult. Pressure. 1t Is said,
- ~ toll ~ The
companies to sell stock. One Is quoted
as saying he had to busy himself at
night to dispose of q fixed minimum Of
shares in order to save his job.
Another story is told by a man who
says he was present in relatives home
at a transaction in which salesman
for an insult concerned succeeded in
unloading several shares of stock at a
price 10 per cent in advance Of the cur
rent market quotation. The sale was
made on the reputation of Samuel insult
as utility wizard.
Bitter things are being said about the
insults and some of them. probably, are
deserved. But even in the shadow Of
their gigantic failure. justice will recog-
nize that their utility companies gave
good service and did much to develop
Chicago and other communities In which
they operated. Ambition, overstimu-
lated by success, persuaded them to
venture on dangerous courses While
the prosperity psychology was rife in
the country it was no difncult matter
to rationalize and justify policies that
later depression developments proved
unsound.
An Uncrowned King.
Samuel insult, the older brother. whose
shrewd mind and impericus spirit domi-
mated his associates seemed almost to
believe himself superior to those eco
nomic laws by which lesser persons
must be governed. He was sort of
God in the machine of Chicagos social
political and economic life. He saved
grand opera when it was languishing
He built the magnificent civic opera
palace on the river bank, made the
floors above its spacious auditorium his
Offices, and sat as an uncrowned king
In box on opening night.
That building is now q splendidly
tragic mausoleum for the memories Of
a brilliant, but blighted career. Opera
is dead; the Offices are empty; the halls
and corridors give forth only mourn
full echoes to the footsteps Of the casual
visitor
insult gave generously to charity; he
contributed to party campaign funds
with an impartial liberality designed to
make friends on both sides Of the po-
htical fence
and He S wss to giving Ana orders se
when policy made it wise, he could ad-
Just himself to unpleasant situations.
Years ago the City Club of Chicago
black-balled him on the ground that its
devotion to civic affairs might be COM
promised by admitting so powerful q
utility magnate to its membership. He
cherished bitter resentment over that
slight, but when he needed the support
| Of public opinion for some feature of
his program that required legislative
action, he accepted an invitation to ad-
dress the club and was smilingly anna
BILE in presenting his case.
Dreams New Nightmares.
Martin J. insult, who was presiden.
OF the Middle West Utilities Co.. and
who eMled himself to the little town of
Orillia. In Ontario, when Samuel went
! to Paris, is less aggressive man. For
that reason many thought him the
more likable of the two. Subordinates
say he could drive hard, but away from
his desk he looked more the dilettant
than the man Of intricate business af-
| fairs. He is tall, white haired. with
slow, drawing speech in ordinary con-
versation, in contrast to the stock and
incisive older member of this wrecked
| fraterna1 partnership
| The insults are gone from Chicago
The structure Of speculative values
which they reared has been disastrously
debated; the golden dreams OF many
who believed in them have turned to
nightmare; but the utilities they de.
veloped for light, heat, power and
transportation still serve the people.
| (copyright. 1882. Nv North American News
! paper Alliance. 1nc)