INSULL ARRESTED IN GREECE

Hawera Star, Volume LIII, 28 August 1933, Page 7

INSULL ARRESTED IN GREECE

REQUEST OF UNITED STATES CHARGES OF FRAUD (United Press Association—By Electric Telegraph Copyright.)

ATHENS, Aug. 26. Mr Samuel Insull has been arrested at the request of the United States.

An application for the appointment of a receiver for Insull Utility Investments, Incorporated, was made to the Circuit Court-, Chicago, at the end of March, 1932, bv Mrs Helen Samuels, who owned £BOO worth of debenture notes. She alleged that the company s assets, which were bought at a cost of over £SO million, were then worth only £5,400,000. The company lacked funds to pay off obligations amounting to £24,200,000. Samuel Insull, the 72-year-old president of the concern, who is now in Greece, was born in London and spent the first 20 years of his life in England. Going "to America in 1881, he became private secretary to the late Mr Thomas Edison, the famous inventor, and was in charge of his business affairs for many years. An application to the Greek courts in December last for the immediate extradition of M r Insull to the United States was refused. Insull Utility Investments was incorporated in Illinois in December, 1928, to carry on an investment business. Over 80 oer cent, of the company’s holdings consist of securities of Commonwealth Edison, People’s Gas, Public Service Co. of Northern Illinois, Corporation Securities of Chicago, Middle West Utilities, Central and South West Utilities, and their various subsidiaries All those undertakings are components of the Insull group. The report in 1931 showed that the company's investments had an aggregate cost of £50,475,725 and an aggregate market value of £15,595,092, the large depreciation being attributable to the fact that, the company’s portfolio was acquired almost at the height of a hull market periotl. The floating debt of the company, represented by bank loans and notes payable, amounted to £lO 651,429. A 5 petition for a receivership for the £SOO million Middle West Utilities Company, the primary Insull concern, was filed in the Federal Court, Now York, on April 14 last year. Tins was said to be the 'largest receivership in history. Tlie Lincoln Printing Company 'which claims to be a creditor to {he extent of £I6OO for printing, carried out to order, filed the petition. It was stated at the time that the Chicago bankers who were then in constant conference with Insull were sceptical! as to the company’s ability to meet its pressing financial problems. They did pet think it could meet notes to the amount of £2 million maturing on June 1, or the bank loans which will mature in the next few years. Middle West Utilities, which is a holding company under Insulll management, controls operations in 30 States of the United States and Canada.