Evening star., 1933-01-13
KREUGER 'SET-UP
METHODS EXPOSED
Form Basis for Criminal and
Civil Actions Against
10 Directors.
BY the Associated Press.

BY the Associated Press
STOCKHOLM, January 13-Crimi-
nal and civil actions against 10 Of the
directors of Kreuger & Toll, some OF
them already under way, are based upon
striking picture of the Kreuger set
up" drawn by accountants who have
grappled for months with the match
magnate's tangled accounts.
The accountants summary OF the
Kreuger system is explained as follows
in a recent report by the liquidators IN
bankruptcy:
Q) Each Of the main companies Of
the Kreuger concern were organized
with a series of subsidiary companies,
frequently several deep. The ultimate
point of control was usually Kreuger
himself, or some uncontrolled firm, or
possibly some fictitious debtor.
(2) AS a rule the same persons were
not managers or bookkeepers in more
than one undertaking belonging to the
same chain.
Carefully Selects Underlings.
(3) Where there was any chance Of
finding out the real import OF his trans
actions, Kreuger seems to have been
most careful to select individuals who
had the fewest possible qualifications
for their job.
a. Practically every business trans
action was carried out by Kreuger per-
sonally, and often passed through his
personal account.
Back of this turks the important, still
unanswered question, Where did all the
money go?
Kreuger dealt with fictitious profits,
to be sure. But he handled millions of
dollars of real money as well. He
loaned approximately $285, ,000,0 900 to
foreign countries. Many of his compa-
MES turned in real profits. Millions
came to him through sale of securities
at high prices. He squandered millions
personally.
Where did all the money go?
The accountants have figured out q
profit and loss statement from 1927
through 1880. 1t showed loss Of 103,-
426,I91 Swedish kronor (about $25,-
856 900 at par). For Is months ended
March 81. 1892. the loss was figured at
1875. .008, $50 kronor.
Gated and worthless assets written off,
the accountants figured at 72S,6sS,645
Swedish kronor, or 23,000,000 at nor
NAL exchange.
Enormous Personal Account"
In Kreuger's personal account" the
Alladdin's lamp by which he created
assets and profits as he willed, the ac-
countants found total debts over Ave
year period of 1855, ,609,706 Swedish
kronor. OF more than $453 100000 at
normal exchange. The credits to this
account totaled 1,706, ,409,815 Swedish
kronor.
But explanation still Is lacking.
Unfortunately, declare the hquida-
tors in bankruptcy, in q recent report,
I'VE must say that at present stage Of
the investigation 1t is impossible to give
even an approximately exhaustive reply
to the question, Where has the money
gone?
"It will probably never be possible to
find out the truth about very large
amounts. particularly during the last
six months before Kreuger's death. as
he has clearly very largely used for his
speculations q series of middlemen and
tools who were unknown to the official
organization of the company"
Additional investigation, as revealed
In the court hearings and through tes-
timony OF the defendants, may help an
swer the question Of what Kreuger did
with the money which cannot be ac.
counted for. In the meantime, mystery
is still q part Of the Kreuger drama.