KREUGER FRAUDS

Wairarapa Daily Times, 13 May 1932, Page 5

KREUGER FRAUDS

BANKERS' HOODWINKED REMARKABLE REVELATIONS. Press Association Electric Telegraph—Copyright NEW YORK, Thursday. Remarkable revelations of the easy manner in which the late Ivar Kreuger hoodwinked some of the best known bankers and financier's of Wall Street weer made at bankruptcy hearings m connection with the International Match Company. . The Lee Iligginson Company, wlncli received 6,300,900 dollars for the flotation of 150,000,000 dollars’ worth of securities for the company, never even thought of asking him for verification of the match monopolies, two of which (in Italy and Spain) arc now shown to be non-existent. Members of the family and friends of the Lee lligginson Company are still holding great blocks of Kreuger stocks and debentures. Such was its confidence in liis integrity that the Match Company permitted Kreuger to take 50,000,000 dollars in German gold and 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 bankers as to 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. The bankers were so unsuspicious that even after his suicide they did not sell his stock, which they held as colateral security.