Evening star., 1933-10-27
EXTRAD|T|ON HELD
SURE FOR |NSULL
Public Prosecutor Destroys
Elaborate DefenSeS Of
Utilities Magnate.
By Radio TO The Star.

BY Radio TO The Star
ATHENS, Greece, October 27.-Public
Prosecutor An,onios Riganakos today
turned a whitening fire on the elaborate
defenses erected by the counsel OF
Samue! insult in the opening days of
the hearing in the Athens Court OF
Appeals, which is deciding the second
action of the American Government to
extradite the former Chicago utility
magnste,
1t was the prosecutions first real at
tack, since Riganakos opening address
was confined to outlining the case. He
had been holding his real fire until ne
saw what the defense had to offer. AS
a result of this strategy came todays
reply to the defense. devastating to the
fugitive's chances of victory.
Ricanakos style Of pleading was
marked by dry laconic wit. remorse-
less massing of incontrovertible facts
and inescapable logic His argument
was in Sharpest contrast with Attorney
Christos Ladas' flights of impassioned
oratory. with which Insults attorneys
closed their opening offensive.
Both Sides "Dig In."
At the conclusion of today's hearing
both sides had clearly dug in on
four main issues. Whether insult re-
turns for trial depends on the courts
Judgment on these points:
l. Was the Corporation Securities Co.
solvent when insult transferred its as
sets to preferred stockholders and GER
tain banks?
2. Did insult transfer the assets with
fraudulent intent?
g. Did the insult acts constitute a
basis for a criminal charge in the
United States?
4. Would they. if he had been in
Greece, and committed them here?
To the question whether the acts are
liable to prosecution in the United
States, the defense says that the Amer
lean bankruptcy laws are unconstitu-
tional and, even if they were not, In
sulls acts we're not covered by them.
The prosecution replies that the law
Is entirely constitutional, covers insults
acts and. Furthermore, it is not within
the competence of the Greek court to
decide whether American law applies in
this case or is constitutional.
Held Insolvent.
lIC HuColiOll WiClllCl lllc COlllpdlly
was solvent depends upon the value
assigned to the insult Utilities Invest
ment Co. stocks held by the Corporation
Securities Co. The Federal Court up
held the prosecutions contention that
these stocks were worth so little that
Corporation Securities was insolvent.
The defense here blithely retorts that
the court does not know what it is talk
ing about.
The defense claim that the stocks
should be valued at the market price
at the time. although they have some
what befogged the issue by insisting
that Insull i vas @ entitled Il lee to & value them EN-
market price is taken, the company was
solvent
The prosecution retorts that the mar
ket price was fictitious and inflated
because 1t was maintained by wash
sales.
Their real value, according to the
prosecution, was the price set on the
stocks by officers of the insult Utilities
mately one-fourth of the market price
II this value is taken, the company was
insolvent.
Sales Called Fraudulent.
The defense insists that maintenance
OF the price in the market is commend
able. The prosecution says that it
might have been if done by real pur-
chases. but since it was done by wash
sales, it was fraudulent
On the question whether insult acted
with fraudulent intent, the defense says
that he did not. and that his honest in
tentions were proven by the fact that
he used his own and his familys for
tunes to save the company, did not
profit personally, and considered the
company solvent. He acted to prevent
Its bankruptcy. according to the defense.
insult was absent when the dis
puted dividend was voted and there
fore cannct be held responsible, the
defense argues
To these contentious the prosecution
replies that insult never used his own
and his family's fortunes to save the
companies, but, on the contrary to
help satisfy personal creditors, that
family proflted enormously, that insult
knew from his own confidential reports
that the company was insolvent
Voted for Loan Motion.
Far from acting to prevent bank
ruptcy, it was these very transfers
which caused the bankruptcy-andt this
was upheld by the Federal Court in
adJudlcating the company bankrupt,
according to the prosecution.
While 1t is true that insult was alb
sent when the dividend was voted, he
was present when the directors voted
to borrow money with which to nav
the dividend and he voted fer it, the
prosecution says
The only real issue now remaining is
whether insults acts would warrant his
commitment for trial in Greece if he
had been committed here. Riganakos.
with Forrest Harness of the American
Attorney Generals Office at his elbow.
has clearly demolished the other defense
contentious.
This question is so involved in refine
ments of corporation financing and
legislation in Greece that it is impos-
sible to predict the courts decision in
this case 1t is safe to say, however,
that, on the basis of the hearings thus
far. the chances are in favor of extradi-
ton.
One Attorney Big Aid.
The only one of the three insult at
torneys who seems capable of arguments
likely to turn the scales in the former
millionaire's favor is Denis LazaremoS
He does not indulge in oratory like
Ladas and speaks with less of an air of
authority than does Pericles Phaillis.
but, on the other hand. is never caught
in misstatements of acts like Rhaillis
nor is he guilty of hopelessly spawned
logic like LadaS.
Ladas' logic collapsed most COM
pletely in his conflicting descriptions
of insults present financial situation.
Early in his argument he claimed
that the insult companies securities
were very valuable and therefore the
company was solvent Later. in trying
to show how insult acted in good faith
he claimed that his client still held all
the shares he ever bought in his own
companies. On Ladas' own showing
insult is thus a millionaire today.
But when it came time to appeal
for sympathy for insult. Ladas worked
himself In to a pitch of such en-