DIRECTORS ARRESTED

Evening Star, Issue 21080, 18 April 1932, Page 7

DIRECTORS ARRESTED

KREUOER-TOLL TRUST FALSIFICATION OF BOOKS Press Association—By Telegraph—Copyright. STOCKHOLM, April IG. The police have arrested Lange, Huldt, and Holm, three directors of the Krouger-Toll Trust, who are charged with falsification of ''the balance-sheet in connection with the Kreuger affair. It is revealed that since 1928 Kreuger and Toll issued share debentures exceeding £50,000,000, including nearly £25,000,000 to the Swedish Match Company and over £20,000,000 to the International Match Corporation. SENSATIONAL ALLEGATIONS LARGE-SCALE FRAUDS STOCKHOLM, April 17. According to the indictment Lange, Huldt, and Holm were merely dummy directors, performing like automatons at Kreguer’s behest in concerns which were founded solely for fraudulently transferring funds. Other accusations in an amazing series of alleged frapds include a bogus bank, fictitious assets, a secret safe, and forged documents. Lange was a director of the Garanta Company of Holland, which was allegedly based mainly on a fictitious contract giving the company the retail sale of matches in Poland and an alleged bogus match monopoly with Spain in return for a loan of 180,000,000 pesetas. It is alleged that Huldt, at Kreuger’s orders, founded a Dutch bank for Scandinavian trade with Amsterdam, which never did business but only kept fictitious books. Assets amounting to millions appeared in the balance-sheet. Among the fictitious assets of the Kreuger-Toll Trust, of Which Holm was a director, is 35,000,000 Dutch florins in the Danzig International Bank, which Kreuger started in 1931. With regard to tho forgery of Italian State bonds, the discovery has been made that tho Krcuger-Toll documents were printed at Stockholm at an establishment to which Kreuger personally delivered tho necessary copper-plates, emphasising the imperativeness of secrecy. The plates were found in Kreuger’s secret safe. It is believed that Kreuger intended to use the forged bonds to balance the 1931 accounts, about which he issued instructions preceding his suicide. Experts have established that 42 bonds, each of £500,000, and printed in English, were forgeries. GOVERNMENT'S LOSSES INCREASED TAXATION EXPECTED. LONDON, April 16. The 1 Daily Telegraph ’ says it is expected that the Swedish income tax will be increased by at least 20 per cent, owing to tho Government losses on the Kreuger taxes. It is now stated definitely that Kreuger forged Italian Treasury bonds to the extent of £16,000,000, but it has not been discovered what use was made of them. [A message received from London on Saturday read as follows The ‘ Daily Telegraph’s correspondent at Stockholm says that one of tho most sensational rumours following Ivar Kreuger’s suicide was the alleged discovery of a large amount of forged foreign Government bonds. The rumour was denied, but there is no doubt now that it is true. Kreuger told his' board that a loan of £25,900,000 was being made to tho Italian Government in exchange for a match monopoly. As a matter of fact, no agreement was reached, but Italian Treasury bonds were printed at Stockholm to order and Kreuger entered them in the books as assets.] 11 COOL SWINDLER AND GAMBLER" STOCKHOLM, April 17. (Received April 18, at 10 a.m.) One newspaper declares that Kreuger was a cool swindler and gambler. He began the frauds in 1916, when he falsely announced that a big issue of new shares had been over-subscribed. A member of the expert committee investigating the frauds says that the last traco of Kreuger’s romantic halo has disappeared. j A Rome message says it is semiofficially announced that the Kreuger bonds are gross and brazen forgeries. The Government refused to have any business relations with Kreuger. HARDLY A GENUINE ENTRY SENSATIONAL REVELATIONS EXPECTED. LONDON, April 17. (Received April 18, at 11 a.m.) The Stockholm correspondent of ‘ Tho Times ’ says that the whole fabric of the once mighty Kreuger Toll concern is irreparal.y torn. It is worthless and rotten. It is certain that when the directors are placed on trial more amazing revelations will be made. Apparently there is scarcely a genuine entry in the Kreuger accounts. The investigators are more and more dumbfounded as they examine foreign transactions. —London ‘ Times ’ Cable. £28,000,000 INVOLVED STOCKHOLM, April 17. (Received April 18, at 12.15 p.m.) Kreugor’s frauds are now estimated to involve £28,000,000.