The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-12
TRIED TO Save
insult, EATON
SAYS IN TRIAL
Cleveland Capitalist BareS
Details of Battle of
Millions
URGED UTILITY MERGER
Combine Would Have Aided
Fallen Leader, Is
Claim.
BVUnitcdPress

CHICAGO, Nov. 12.-Cyrus S.
Eaton, Cleveland capitalist whose
battle of the millions" with Samuel
insult was a sensation of the finan-
Cial world four years ago, revealed
in federal court today that he sug-
gested a merger to insult which
might have saved the latter's utility
empire from collapse.
Mr.. Eaton, whose appearance as
witness for the defense in the In
sui trial was a surprise to govern
ment prosecutors, told for the first
time his version of the S56,000, 900
battle during the dying days of the
insult companies.
1t was a s56,O0O,OOO debt thrust
upon Insults Corporation Securities
Company and insult Utilities In
vestments in the regaining of the
Eaton stock that helped bring about
the insult collapse in June, 1882.
Mr.. Eaton appeared primarily as a
character witness for Harold l..
Stuart, investment banker and con-
fidante of the 75-year-old insult.
His testimony. however, centered
around his disclosures of what has
been known as the Eaton raid" on
insults holdings.
Denies Control Plot
He denied that in 1929, when he
and his associates held Isl, SOC
shares of insult operating COM
pany stocks, he was attempting to
seize control of the companies.
We bought up these holdings
only as a sound utility security for
our investors" he said
In May, 1880, came to Chicago
and had conference with Mr.. In
sull, his son and his brother. Mart
in" Mr.. Eaton said in a low voice,
barely audible to spectators.
insult, although assured by Mr..
Eaton that no efforts were under
way to seize control of the operating
companies, remained suspicious.
I told him that our investors in
Continental Shares, Inc, an invest
ment company, we're interested in a
concentration of our utility hold
ings," he continued.
insult Offered Leadership
IT told him that we already had |
interests in the United Light and |
Power Company with its sub
salaries, the American Power,
Light and Traction Company and |
the Continental Gas and Electric |
Company.
The holdings were national in
character, extending to Detroit, |
Milwaukee, Columbus and Lincoln,
Neb.
L asked Mr.. insult if he would
consider joining in a merger and
heading it himself. It was the OPP
perfume time for a concentration of
Middle West Utilities, I said.
But Mr.. insult said he felt his
age would not allow him to take
on the extra burden. He said that
if our main object was to acquire
cash he would gladly buy our hold
ings in his three companies, the
Commonwealth Edison, Peoples
Light. Gas and Coke and Public
Service of Illinois"
insult offered $3.50 a share for the
ISL 500 shares held by Eaton, but
the Cleveland capitalist held out
for S4O0.
Il told him we weren't anxious to
sell, so the deal wasn't closed then,
Eaton said.
Financial Aid Available
Under questioning by Floyd E.
Thompson. attorney for insult,
Eaton said that he assured insult
during their conferences that if a
merger was effected there would
be no difficulty in obtaining finan-
cial backing to retire the short
term debts of both units.
Eaton said that he began accum-
ulating insult stocks in 1926.
During the insult Eaton battle
there we're reports that Morgan
bankers were aligned with the
Cleveland financier in the effort to
wreSt control of the middle-western
utilities from insult.
Eaton, however. made only one
mention of the Morgan interests in
his testimony.
He said the eastern capitalists
were large buyers of Eaton secur-
tiles"