KREUGER’S OPERATIONS

Otago Daily Times, Issue 21643, 13 May 1932, Page 6

KREUGER’S OPERATIONS

FINANCIERS HOODWINKED REMARKABLE DISCLOSURES. • (By Electric Telegraph—Copyright) (United Press Association.) .NEW YORK, May 9. (Received May 12, at 5.5 a.m.) Remarkable revelations with respect to the easy manner in which Kreuger hoodwinked some of the. best known bankers and financiers of Wall street were made at the bankruptcy hearings of the International Match Company. The Lee Higginson Company, which received 6,300,000 dollars for the flotation of 150,000,000 dollar securities for the company never even thought of asking him for verification of the match monopolies, two of which,, in Italy and Spain, are now shown to have been non-existent Members of the family and friends of the Lee Higginson Company are still holding 8,000,000 dollars of Kreuger stocks and debentures, such is their confidence in his intregrity. The Match Company permitted Kreuger to take 50,000,000 dollars of German gold bonds belonging to it, which he used to raise a large personal loan. • The financier, Mr Percy Rockefeller, is disclosed as a heavy purchaser of Kreuger issues after meeting him. • It was a polite request by Kreuger’s American bankery as td bow he wished to repay a loan of 11,000,000 dollars due to the International Telephone and Telegraph Company that is believed to have been the immediate cause of his suicide. Bankers were so unsuspicious that even after his suicide they did not sell his stock, which they held' as collateral.