KREUGER AFFAIR.

Press, Volume LXVIII, Issue 20524, 18 April 1932, Page 9

KREUGER AFFAIR.

COMPANY DIRECTORS ARRESTED. FALSIFICATION OF ACCOUNTS ALLEGED. (UNITED PHES3 ASSOCIATION—By ELECTRIC TELEGRAPH—COPYRIGHT.) (Received April 17th, 6 p.m.) STOCKHOLM, April 16. The police have arrested Langc, Huldt, and Holm, three directors of the Kreuger-Toll Company. ivho are charged with falsification of the balance-sheet and profit and loss account in connexion with the Ivar Krouger affair. __ It is revealed that since 1928 the Kreuger-Toll Company has issued share debentures exceeding 5i50,000,000 including the following issues:—-Swedish Match Company, nearly £25,000,000, and International Matcli Corporation, over £20,000,000. Tho directors of the Krcugcr Company are charged with having assisted the late Ivar Krouger (Swedish millionaire, who committed suicido in Paris) in falsifying the books of the firm. The auditor's report states that the irregularities started in 1925

COLOSSAL FRAUD.

AMAZING DISCOVERIES

(Received April 17th, 11.50 p.m.)

STOCKHOLM, April 17,

According to the indictment Langc, Huldt, and Holm were morely dummy directors, porforming like automata at Krcuger's behests in concerns founded solely and fraudulently for the transfer of funds.

Other accusations in an amazing series of alleged frauds include a bogus bank with fictitious assets, and a secret safo containing forged documonts. Lunge was director of the Garanta Company of Holland, which was based mainly on, as it is alleged, a fictitious contract giving the company tho retail sale of matches in Poland, and also an alleged bogus match monopoly with Spain in return for a loan of 180,000,000 pesetas. The contract was found in Krcuger's room.

It is alleged that Huldt, at Krcuger's orders, founded a Dutch bank for the Scandinavian trade at Amsterdam which never did business, but only kept fictitious books. Tho assets, amounting to millions, appeared in tho balance-shoo-.. Among the fictitious assets of tho Kreugcr Toll Company, of which Holm was a director, was, it is alleged, 35,000,000 Dutch florins irt the Danzig International Bank, which Ivar Krcugcr startcd in 1931.

Regarding the forgery of Italian State bonds, the discovery was inado that tho Kreuger Toll Company's documents were printed at Stockholm at an establishment to which Kreuger personally delivered the necessary copper plates, emphasising the imperativeness of secrecy. Tho platos were found in Kreuger's secret safe. It is bcliovod that Kreuger intended to use tho forged bonds to balanco his 1931 accounts, concerning which he issued instructions preceding his suicide. Experts hero established that 42 bonds, each for £500,000, printed in English, were forgeries. SWEDEN'S LOSSES. INCOME TAX TO BE INCREASED. (Rccoivod April 17th, G. 45 p.m.) LONDON, April 16. The ''Daily Telegraph" says it is oxpected that tho Swedish income tax will bo increased by at least 20 per cent, owing to tlio Government's losses on Kreuger taxes. . x It is now stated definitely that Kreuger forged Italian Treasury bonds lo tho extant of £10,000,000. It has not been discovered what use ho made of them.