The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-11-03
LEAVES STAND WITH
LAST shout Of HIS
HONORABLE MOTIVES
Tells Jury He Would Have Been
Crucified Had He Returned
To u. S.
COMPLETELY OUT OF FUNDS
Defends "Hundred Million DOL
lar SwindIe" Company as
Necessary

Chicago, Nov. 3.-(P)-With q final
shouted defense Of his honesty, SAM
uel insult left the witness stand in
the insult mail fraud case Saturday.
his questioning by prosecutors at an
end.
Before stepping down, the deposed
Chicago utility executive denied firm
ly that he was running away" when
he left Chicago in June OF 1892, after
his vast utility empire crashed.
Prosecutor Leslie E. Salter asked
him bluntly:
when you were indicted by the
United States government, why didn't
you come back?"
insult turned to the jury.
II think / would have been cruel
fed he declared. Attorney Swan
son Estates Attorney John A. Swan
SOM even had dodgers distributed
showing me being brought through
the streets in chains
Denies Sir Basil's Aid
Reluctantly he admitted that he
was in communication with Chicago
advisers. by code cable messages, when
he began his flight across Europe
in 1892. with American authorities
at his heels.
The name OF Sir Basil Zaharoff,
Greek multi-millionaire, came into
the questioning, but insult denied
that Sir Basil had helped him avoid
being returned to the United States
when criminal charges were first
brought in the fall Of 1882.
Later, pressed for his reason for
fighting extradition when the GRIM
inal charges were brought to his at
tention, insult declared he didn't have
enough money to return to the Unit
ed States.
IT didn't have the funds-of my
own funds-to come back"
Prosecutor Salter, turning to the
affairs OF the Cooperation Securities
Co., under fire In the case as hun
dred million dollar swindle," sought
insults admission that the truth
about that concern was concealed
from investors.
It's investments, salter contended.
were chiefly in two other insult COM
panies. insult, aroused, answered IN
anger.
Shouts In Anger
II could have sold that stock to the
public If had represented that Ill its
securities were in those two COM
panies," he shouted.
ION the belief that people had In
my integrity-and which they still
have"
Shown the code messages which
cracked across the ocean during the
time insult was fugitive In Europe.
insult smiled wryly:
"You have got some pretty smart
code readers" he said.
Shouting, mo, sir! No, sir! No, sir!'
in q flare of anger, Insult denied that
he kept his biggest company afloat
only by juggling securities between
the other concerns OF his system, as
far back as 1928.
The deposed utility executive was
confronted with the income tax re-
turns of Middle West Utilities Co., his
giant holding concern and master key
to his system.
He had testified that he bought
stock in this company In 1929, as the
nest egg for the Corporation Securi-
ties Co., in which investors lost $780,
600 900. Assistant U. 8. Attorney
General Leslie e. Salter asked
No, Sir! No, Sir! No, Sir!
isn't 1t fact that you claimed
losses of more than $l2.400,O00 for
the Middle West Utilities Co.. and its
c,,hsidja rios in the wear 1Q14 that
these losses were not taken up on
your books and that If they had been
shown, there would not have been
dollars worth of profit for any stock
holder?"
Wasn't that the real reason you
had to reorganize?"
insult cried angrily: mo, sir! No.
sir! No, sir! You are entirely mis-
taken!"
Continued on Page 81