The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-10-01
U. FIGHTS TO
regain insult
bubble MONEY
Suit, to Be Entering Wedge
for Recovery, Will Hit
Bonding Concerns.
JURY ACTION LOOMS
Fallen Utility Kings May
Face ExtraditiOn; Bare
Insolvency Facts.
JURY ACTION LOOMS
BIZ Lnited Press

~ tHfcd Press
CHICAGO, Oct. Federal Judge
Walter G. Lindley authorized the
first attempt today to recover some
Of the two billion dollars lost il
the insult utilities collapse-Ameri-
cas- greatest industrial failure.
He gave permission to Eugene
Thayer, attorney for the Mississippi
Valley Investment Company, tC
start suit for 100000 against the
New Amsterdam Casualty Company
and Lloyds of London, which COW
cred the 100000 bond of Martin
insult.
The bond covered, among other
things, loss dues to mysterious anc
unexplained absence"
Martin insult now is in Canada
Samuel insult, his brother and guild
ing genius of the fifty-five associ-
ated companies, is in Paris.
Jury Action Possible
Dwight H. Green, United States
district attorney, today said there
was possibility of federal grand
jury action this month in the In
sui case.
Green said such action would be
taken lin event enough evidence is
secured by that time to warrant it. ,
States Attorney John A. Swan
son adjourned his state investiga-
ton until Monday, when he will
question Oliver Mccormick, an Of
fetal of the Middle West Utilities
Company.
Swanson indicated he is ready
to use stern methods to force the
return of Samuel and Martin J. In
sui to this country, If the heads OF
the fallen utilities dynasty refuse to
appear here voluntarily.
This development in the sensa-
tionaH investigation of the insult
affairs came after a revelation in
federal court that one Of the prin-
cipal insult corporations was bank
rupt for four months before it went
into receivership, and announce
ment by Swanson that the insults
used $4,000 of corporation funds
to margin private brokerage &C
counts.
Study Extradition Treaties
Swanson previously had indicated
q grand jury inquiry in the insult
matter would open shortly, proba-
bly, next week.
The prosecutors Office then pre-
pared plans for the return of the
insults. Samuel insult Jr. left the
country only last week to join his
father
A study of extradition treaties
with France and Canada already
has been made by Swanson's aids
in preparation for the possible
forcible return of the once-power-
full utilities magnates.
Swanson announced an audit OF
Middle West Utilities Company ano
its subsidiaries, Mississippi Valley
Utilities Investment Company
showed Samuel insult had approved
an advance by the concerns tc
brokers of $170222. This amount
was used to cover the personal trad
ings accounts of Martin insult.
insult Made Profit
A second transaction OF Missis-
sippi Valley Utilities whereby Mar
tin insult made an apparent profit
of $l0.364 through sale of securities
to the concern above the market
price also was described.
The revelation that insult Util-
tiles Investments, Inc, was insolv-
ent in December, 1881, four months
before it went into receivership
came reluctantly from H. l.. Stuart
associate of the insults and partner
in the investment firm of Halsey
Stuart & Co.
Stuart agreed in United States
district court that value of stocks
in the firms portfolio at that time
totaled S77,000,000 against which
there were bank loans of $4,000
900 and a S6O,OO0,OOO debenturt
Issue