INSULL ARRESTED

Poverty Bay Herald, Volume LX, Issue 18179, 29 August 1933, Page 5

INSULL ARRESTED

REQUEST OF U.S. CHARGES OF FRAUD - ATHENS, Aug. 28. Samuel Insull has been arxostcd at the request of the United States on a charge relating to (the transfer oi property in anticipation of bankruptcy. Insull is detained in a nursing home. An application for the appointment of a receiver for Insull Utility Investments, Incorporated, was made to the Circuit Count, Chicago, at the end of March, 1932, by 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 £50,000,000, were then worth only £5,400,000. The company lacked fundsto 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 1 the first 20 years of his life in England. Going to America in 1881, he -becarno private secretary to the late Mr. Thomas Edison, the famous in- * ventor, 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 Mr. Insull to the United 1 States was refused. * Insull Utility Investments .was in- ■ corporatod in Illinois in December, 1928, to carry on an investment busi--1 noss. Over 80 per 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 these undertaking 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 bull market period. The floating debt of the company, represented! by bank loans and notes payable, amounted to £10,051,429. A petition for a receivership for the £500,000,000 Middle West Utilities Company, the primary Insull concern, was filed in the Federal Court, New York, on April 14 last year. This was said to be the largest receivership in history. The Lincoln Printing Company, which claims to be a -creditor to the 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 wore sceptical as to the company’s ability to meet its pressing financial problems* They did not think it could meet notes to the amount of £2,000,000 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 Insull. management, controls operations in 30 States of the United States' and Canada.