THE INSULL CASE.

Waikato Times, Volume 113, Issue 18874, 18 February 1933, Page 6

THE INSULL CASE.

ECHO IN UNITED STATES, “VIOLATION OF PRINCIPLE.” BANK PRESIDENT'S STATEMENT. United Press Assn.—Elec. Tel. Copyright WASHINGTON, Feb. 16. The former Vloe-Presldent of the United States, General Charles G. Davies, said before a Senate Committee to-day that his bank had violated the principle of the law in making loans to the Insull Companies. Samuel Insull, the American electrical magnate, and former associate of Thomas A. Edison, the Inventor, appeared before the Greek Court at Athens recently on an application for extradition on charges of alleged fraud committed in America. The action failed, the Court holding that under Greek law it had no Jurisdiction to grant the application. Mr Dawes’ Institution is the Central Republic Bank and Trust Company, Chicago. It lent 11,000,000 dollars to Insull enterprises. Though he agreed that this action violated the principle of the law Mr Dawes said it was intended to prevent the banks from “putting too many eggs in one basket.” When the loans were made, however, they were all supposed to be well secured.