The Archive · 1934

INSULL FINANCING KEPT SECRET

Chicago, Oct. 18 An amazing story of @ stock market "war" between Mr. Samuel In-sull_and Mr. Cyrus Eaton, a rival capitalist, was told at to-day's hearing) of the charges against the Insull brothers and fifteen ce-defendants. in connection with the collapse of the Insult utilities companies The prosecution alleged that Mr. Baton had acquired such large hold. ings in the key Insull companies to endanger Samuel Insull's control, and that thegatter had been obliged to buy back {number of shares from Mr. Eaton at an exorbitant price. Mr. Eaton's terms, it was added, included $48,000.000 in cash and $94 400,000 in The Corporation Securities Ca, tone of the Insull companies, was drained to pay Mr. Eaton, while a oan, of $40,000,000 was floated to Provide more cash.

'The prosecution' alleged that this Jemergency financing was concealed from investors, who were simultaneously urged to buy stock from the

Text read from the printed page and cleaned; old type leaves the occasional error.

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