The Waterbury Democrat., 1934-11-12

centered around his disclosures of what has been known as the Eat on raid" on Insull holdings.
 He denied that in 1929, when he and his associates held 151,506 shares of Insult operating company 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. t
 "In May, 1930, came to Chi cago and had a conference with MT Insull, his son and his brother, Martin" Eaton said in low voice, barely audible to spectators.
 Insult, although assured by Eat on that no efforts were underway to seize control of the operating companies, remained suspicious.
 T told him that our investors in Continental Shares, Inc, an invest ment company, were interested in a concentration of our utility hold ings," he continued. .I.
 "I told him that we already had interests in the United Light & Power Company with it's subsid- iaries, the American Power, Light & Traction Company and the Con- tinental Gas & Electric Company. "The holdings were national in character, extending to Detroit Milwaukee, Columbus and Lincoln Neb.
 T asked MT Insull if he would consider joining in a merger and heading it himself. It was, the op- perfume time for a. concentration of Middle West Utilities, I said.
 "But MT 1nsull 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 & Coke and Public Ser. vice of Illinois" e
 Insull offered $350 a share for the 151,566 shares held by Eaton but Cleveland capitalist held out for $400.
 T told him we weren't anxious to sell, so the deal wasn't closed then" Eaton said.
 Underquestioning by Floyd E. Thompson, attorney for Insult, Eaton said that he assured Insult during their conferences that if 2 merger was effected there would be no difficulty in obtaining financial backing to retire the short term debts of both units.
 Eaton said that he began ac- cumulating Insull stocks in 1926.
 During the Insull- Eaton battle there were reports that Morgan bankers were aligned with, the Cleveland financier in the effort to wrest control of the middle-west- ern Utilities from Insull.
 Easton, however, made only one mention of the Morgan interests in his testimony.
 He said the eastern capitalists were large buyers of Eaton se- curities.
 Eaton said he returned to Chi caco late in May when it was de- cided that the Eaton interests would consent to the sale at $Soo share.
 It was agreed. he said; that about six-sevenths of the purchase price would be in cash and one seventh in stocks of Insull ut1n- ties investment and corporation securities.
 You knew when you took these. Insull stocks that the condition or the Insull portfolio ana us nsteu value had not been revealed, didn't your"
 "Yes. but there was nothing un- usual about that. It is customary not to publish such things in the cases of permanent trust compan- ics." .
 Eaton. who was accompanied ln- to the courtroom by his daugnIer' Mary a tall blond, testified before an audience sprinkled with mem bers of Gold Coast society.
 Insull celebrated his 75th birth, day yesterday. He sat with hand cupped to ear and head bend Tor, ward as Eaton testified. Mrs lnsui, smiled rcassurinGly to her husband several times. . On cross exa imitation by Assist ant Attorney General Leslie Salter the witness denied he threatened Insult with loss of his companies.