The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-02-27
INDLCT INSULTS ON MAIL FRAUD
CHARGE; /. s. JURY ACCUSES 10
Action Follows Federal
Probe of Corporation
Securities Collapse.
INVESTORS ARE VICTIMS
Widely known Leaders in
Chicago Finance World
to Face Court.
By Jpitcd Press

By UIitcd Press
CHICAGO, Feb. 81. =
Nineteen of Chicago's widely
known fnanciers were in
dicted by the federal grand
jury today on charges of u.s.
ing the mails to defraud in
vestorS in varioHs insult en-
terpriSeS.
The indictments followed United
States government inquiry into the
collapse of the Corporation Secur-
tiles Company a holding company
Tor the colossal Middlewest Utilities
Company, Set-up of insult opera
ting companies.
Nineteen Are Indicted
The nineteen indicted were:
Samuel insult Sr., deposed head
OF his utilities empire, now a fugitive
in Greece.
Martin J. insult, his brother, a
fugitive in Ontario.
Samuel insult Jr, son of the form
er head of the empire.
Stanley Field, chairman of the
board of the Continental Illinois
national bank and former director
of Corporation securities.
Harold d. Stuart, head of Halsey,
Stuart e. Co., and formerly presi-
dent of Corporation Securities.
G. w. Stills, vice president of Hal
Sey, Stuart.
Frank K. Shrader, vice-president
of Halsey-Stuart.
P. j. McEnrote, vice-president of
Corporation Securities.
John F. OKeefe, secretary, Cor
poration Securities.
Accuse Commonwealth Chief
Edward j. Doyle, president of the
Commonwealth Edison Company,
operating unit.
John H. Gulick, official of the
Commonwealth Edison Company.
Clarence T. MacNeille, vice-presi-
dent Halsey-S Stuart.
Fred H. Scheel, president
Utility Securities Company, another
insult holding company.
Robert w. Waite, treasurer Utili-
ties Securities.
Frank R. Evers, secretary UtiH-
ties Securities.
George A. Kemp. assistant secre-
tary Utility Securities.
Clarence R. Whitworth, auditor
for Corporation Securities.
Bonds for each were set at $4,000.
IS Counts in Indictment
The Indictment contained twenty
five counts. 1t charged specifically
that the defendants devised a
scheme and artifce to defraud and
to obtain money from prospective
investors by false pretenses. repre-
sensations and promises in the sale
of Corporation Securities Company
common stock"
Another element Of the charge
was that the defendants engaged in
nationwide campaign in the sale
of stock through Halsey, Stuart 81
Co., Utility Securities Company,
Corporation Syndicates, Inc; insult,
Son & Co., and others.
The story of the Insults domi-
nance of middle west finance and
their sudden debacle ending in the
flight of the two brothers, has be-
come known everywhere.
Today's indictment brings in new
names.
Stanley Field Civic Leader
Stanley Field long has been a
leader in business, civic and social
realms in Chicago. He is a director
Of Marshall Field 81 Co., and is
president Of the Field Museum of
Natural History. Other companies
in which he has been q director in
clude: Illinois Central Railroad, Peo-
pies Gas, Light and Coke Company,
Commonwealth Edison Company.
Public Service Company of Northern
Illinois and Mutual Life Insurance
Company Of New York.
Edward J. Doyle started working
for the old Chicago Edison Com
pany at 16 as an office boy. He
worked his way up the scale of i'm
portance until in February. 1880, he
was made president of the Common
wealth Edison Company.
Halsey, Stuart g. Co. is an in
veStment brokerage concern with
branches in many cities. The COM
pany handled sale of several security
issues for the INSULT holdings COM
panies. Harold S. Halsey recently
was questioned by a senate commit
tee in Washington, D. G.
Operated at Loss
The indictment charges that the
defendants falsely represented TO
the investors that they would find
safety of principal based on the
great physical properties that
secured the investments" when the
fact was that the Corporation
Securities Company did not own
any great physical properties and
the security back Of the stock was
worthless.
Other charges were:
The fnanciers represented that
the stock would pay large return
when the earnings of the company
were inadequate to pay any
dividends on common stock and the
company operated at a loss
throughout its existence.
They represented that the COM
mon stock was the pest buy on the
market when it really was WORTH
less.