The Bismarck Tribune Newspaper, October 11, 1932, Page 3

THE BISMARCK TRIBUNE. TUESDAY, OCTOBER 11, 1932 After Building 50 Years Insull Crashed in 50 Days Quit 65 Chairmanships, 85 Di- rectorates, 11 Presiden- cies in Three Hours Editor's Note: This is the third of six stories on the rise and fall of Samuel Insull, public utility magnate, who has been called “the world’s greatest fail- ure.” (Copyright, 1932, NEA Service, Inc.) Chicago, Oct. 11—Samuel Insull’s climb to control of a public utilities empire that was worth $4,000,000,000 ‘at its high tide, required 50 years. His fall took just about that many days. On April 15, 1932, Insull’s vast Mid- dle West Utilities company, operating in 32 states, went into receivership. On June 6, the 73-year-old Napoleon of power abdicated. He resigned as chairman of the Commonwealth Edison company, the People’s Gas Light & Coke company ond the Public Service Company of Northern Illinois, three of the larg- est utility operating companies in the world. He resigned as one of the receiv- ers Of Middle West Utilities. He re- signed from 65 chairmanships, 85 di- regtorates and 11 presidencies. For tkree hours Insull sat at his desk Signing resignations. When Samuel Insull finally laid aside his pen he had nothing left but three yearly pensions of $6,000 each, granted him by his three major operating companies. The last days of empire saw a vastly different Samuel Insull from the hard-headed, autocratic financial tyrant to whom nobody in Chicago had dared say “No.” Back to the Bottom When reporters called at his lux- urious office for a farewell inter- view they were greeted by a care- worn old man whose hollow smile and trembling fingers indicated the strain under which he had labored in his vain effort to save his com- panies. Asked about his future plans, he was affable but reticent. As a closing question, someone in- quired about his health. “Well,” replied Insull, “I got a good Sleep last night; I feel pretty good today.” Something in his tone seemed to imply there had been other nights— probably many—not so restful. Later, an associate told reporters he had heard Insull say the day be- fore: “I have gone from the bottom to the top and now I am at the bottom again. I only hope I will be able to keep a roof over my head and care for my wife.” There is no mystery about Insull’s downfall. The real mystery is how he managed to keep his fantastic pyramid of holding companies stand- ing as long as he did in the face of the worst stock market decline in history. Insull had fought desperately. He had thrown in his own $100,000,000 fortune. In perhaps the most hectic chapter of frenzied finance in his- tory, he manipulated, borrowed, Joaned, exchanged millions of dol- lars between his various companies in a manner that now has given au- diters one of the most intricate and complicated financial tangles on rec- sold in 1930 in $101 stock units, at which time the price of one share of common was $28.25. Its 1932 low was 121, cents a share; latest data shows this stock offered “at the mar- ket”—and no takers. It is important to bear in mind that these are security holding com- panies. The operating companies that Insull’s genius built before he| turned to high finance are, on the whole, doing as well as other utili- ties. ? Commonwealth Edison, which soared to $450 a share in 1929, hit @ low of $35 in 1932 and has since climbed back to about $75. People’s Gas, which went to $104 in 1929, dropped to $39 this year but has since recovered to $75. Public Serv- ice of Northern Illinois, which was $435 in 1929, has recovered from a 1932 low of $35 to about $75. RUSSIA CELEBRATES MAJOR ACHIEVEMENT Gigantic Hydro-Electric Plant, Largest in World, Is Completed Dnieprostroy, U. 8. 8. R., Oct. 11.! ington 13.5 (x) and 14,864,000. —(?)—Soviet Russia Monday cele- brated a major achievement of the five-year plan with the official open- ing of its gigantic hydro-electric plant here, designed as the largest in the world. Headed by representatives of the government and Communist party Igaders, thousands of persons crowd- ed the site of the new power devel- opment to hear officials of the Com- | missariat of heavy industry announce the beginning of operations of the country’s most ambitious industrial Project as current was turned on from the powerful generators. The foremost Soviet contribution to the electrification of Russia was Lenin's basic plan for industrializing the nation. Designed and constructed by American engineers and equipped with American machinery, the open- ing of the great electric station two months ahead of schedule marked a personal triumph for Colonel Hugh L. Cooper of New York, whose firm had the contract for the project and who personally supervised it from the beginning five years ago until the government accepted the plant a month ago. For his firm's work on the plant, the government decided to confer on Colonel Cooper the Order of the Red Star, making him the first foreigner to receive the decoration. The development represents an in- vestment of 220,000,000 rubles (nomi- nally $110,000,000) and will have an ultimate capacity of 756,000 horse- power with an annual production of eel da kilowatt hours of elec- icity. Curtis Defends Farm Tariffs at Billings * Billings, Mont., Oct. 11.—(#)—De- ord. He saddled stock on his em-j| fending Republican policies as they ployes and ordered, them to go out} and sell it, He borrowed heavily from banks—millions on millions of dollars. A Sudden Crash In the years when he was building} his giant chain, Insull had been called “the greatest money raiser in history.” In the end, this ability proved his undoing. For he contract- ed such burdens of debt for his in- vestment companies that they even- tually collapsed under their own weight. When the end came, Insull went down with his ship. Chicagoans tell you they are certain he lost every dime he had. The crash came with deadly swift- ness. In brief, here is the story: Last spring, Middle West Utilities Co. found itself unable to meet $10,- 000,000 in short term notes. frantically appealed to New York bankers . . . but, at last, his credit had dried up. He could get no more money. So a Chicago printing firm, to which the $3,000,000,000 Middle West Utilities owed an $8,000 bill, threw this industrial giant into receivership and the far-flung Insull empire top- pled. Middle West was the cornerstone on which the Insull pyramid rested. One by one, the other tightly-inter- laced holding companies dragged each other down. Among the first to fall were the great superholding companies, Insull Utility Investments and Corporation Securities, Inc., which capped the peak of the pyramid. They repre-/in sented control of the great Insull do- main. Losses in Millions When, the other day, auditors for the receivers of Insull Utility Invest- ments completed a five-month ex- amination of the books, they report- ed this condition had existed as of ril 16: i ARrnsull Utility Investments was hopelessly insolvent. It owed nine times as much as it owned. It had $24,473,364 of assets with which to pay $253,984,341 liabilities, a deficit 226,000,000. othe reason for all this was clear. ‘The auditors’ balance sheet showed this investment trust held securities for which it had paid $237,892,050 and which, at current prices, had a market value of $30,404,367, a shrink- age of more than $207,000,000. ‘As yet, there is no auditor’s report on Corporation Securities, Inc. The Jatest available data is the company’s palance sheet of Dec. 31, 1931. This showed investments with a book yalue of $145,455,706 and a current, market value Ke yh shrink- age of more than . ote is interesting, in this connection, to note what happened to prices of the most important Insull security es. +amiddle West Utilities common soared to a high of $570 @ share in 1929, was then split 10-for-1 and came to rest at $50. The 1932 low ‘on this stock was 12% cents a share; recent quotations, largely specula. tive, haa boosted it to about 37% cents, $160 to 1245 Cents Insull Utility Investments Co. hit $160 a share in 1929, dropped to a Jow of. 12% cents in 1932. Recently there ‘has been a little speculative uying at 26 cents a share. eeeteraiion Securities, Inc, was affect the farmer, Vice President Charles Curtis reviewed the tariff in @ campaign address Monday night and said Montana, as a farming state, should count it “good business” to have protection on the crops it grows. Curtis spoke at a state-wide rally of Republican leaders. Pointing out Montana exports $11,- 000,000 worth of goods annually, in- ere flour, sugar and wool, Curtis “These are all good reasons why you should have Republican protec- tion instead of a Democratic tariff that will admit a flood of cheap Aus- tralian wool, cheap foreign sugar or @ flood of Canadian wheat from across the border.” The vice president declared $3,219,- 000 worth of agricultural imports were “dumped on your home markets” Insulljin the final fiscal years of the last Democratic administration. Curtis praised President Hoover's various acts in seeking to correct Present economic conditions and said his program is restoring better times. The president's action in calling upon the federal land banks to extend loans ‘ather than foreclose mortgages and arranging for credit for seed and crop loans was referred to as indicative of the president’s interest in the wel- fare of the farmers. NOT 50 YEARS William Laist, custodian of the state capitol building, is a stickler for accurracy. It was erroreously stated in The Tribune Monday that he had attended the first cornerstone laying 1883 and had been employed by the state for 50 years. ‘The facts are, he said, that he came to North Dakota in 1885 and will have been employed by the state 38 years next Jan. 1. Sell your live poultry and cream now to Armour Cream- eries, Bismarck. | 54 and 83,584,000; Nebraska 76 and | 281,970,000; Kansas 56 and 127,505,- | Minnesota 13. | South Dakota 12.5 (x) and 13,912,000; ; Montana 14.4 (x) and 616,000. | Other Spring Wheat | North Dakota 10.5 (x) and 79,338, ‘NORTH DAKOTA CROP | ‘OF DURUM IS PUT AT 26,932,000 BUSHEL} U. S. D. A. Estimate Is Based | on Yield of 9.5 Bushels Per Acre | Washington. Oct. 11—(4)—The de- | partment of agriculture Tuesday is- | sued its October crop report by states | showing the condition and indicated! production in the important produc- ing states as follows: | Corn | Indiana, condition 84 per cent of jmormal and indicated production’! | 170,015,000 bushels; Illinois 88 and 363,720,000; Minnesota 84 and 166,- 464,000; Iowa 94 and 516,208,000; Mis- souri 83 and 189,240,000; North Da- kota 71 and 28,728,000; South Dakota 000. Durum Wheat (x) and 1,937,000; North Dakota 9.5 (x) and 26,932,000 Minnesota 13.4 (x) and 15,839,000; South Dakota 13.0 (x) and 35,282, | Montana 12.5 (x) and 45,500,000; | Idaho 29.0 (x) and 16,791,000; Wash- | Oats Indiana 30.0 (x) and 60,630,000; Mllinois 37.0 (x) and 162,467,000; Wis- consin 35.0 (x) and 89,495,000; Min- nesota 36.5 (x) and 170,309,000; Iowa 36.5 (x) and 221,993,000; Missouri 19.0 (x) and 37,563,000; North Dakota 21.0 (x) and 44,415,000; South Dakota 32.0 (x) and 77,056,000; Nebraska 30.0 (x) and 74,190,000; Kansas 21.5 (x) and 33,088,000. (x) indicated yield per acre, con- dition not given. Son of Chain Store Chairman Kills Self Chicago, Oct. 11.—(P)—Sewell L. Avery, Jr., son of the chairman of Montgomery Ward and Company, was found dead in the family apartmens Tuesday of asphyxiation. Avery, 31, was the oldest child and only son of the manufacturer and fi- nancier. He was the manager of United States Gypsum company, of which his father is president. A policeman found Avery dead in the library, gas escaping from an ar- tificial fire log in the grate. A butler had called the policeman after finding the young man lifeless, his head resting in the fireplace. Avery was unmarried. Tuesday was the 33rd anniversary of the wedding of his parents, who were prostrated by the tragedy. For several months young Avery, suffering from a nervous collapse and heart affliction, had been under the care of a physician. Lieut. Geary of the inhalator squad said he would report the death as sul- cide while despondent. Predicts Democratic Slate Will Win Nov. 8 Milnor, N. D., Oct. 11—(F)—P. W. Lanier, Democratic nominee for U. S. senator, Monday predicted “North Dakota will give Governor Roosevelt a strong majority over President Hoover at the polls Noy. 8.” Lanier declared he based his fore- cast on observations he has made in 52 cities and towns since Sept. 21, when he began a flying campaign. He said he had made 49 speeches before audiences averaging 700 per- sons. “Furthermore, the drift to the Democratic party is sufficient to elect the entire North Dakota Demo- cratic ticket,” he said. Lanier opened his campaign in the eastern half of the state here Mon- day morning. Monday afternoon he was to speak at Enderlin and at Lis- bon in the evening. Lanier's itinerary for the duration of the week follows: Tuesday—Cas- selton, 10 a. m.; Hope, 3 p. m.; Coop- erstown, 8 p. m; Wednesday—Aneta, 10 p. m.; Finley, 3 p. m.; Mayville, 8 P. m.; Thursday—Hatton, 10 a. m.; Northwood, 2 p. m.; Larimore, 4 p. m.; Grand Forks, 8 p. m.; Friday— Park River, 3 p. m.; Grafton, 8 p. m.; Saturday—Cando, 2:30 p. m.; Cal- vin, 8 p. m. STORM HITS MEXICO Mexico City, Oct. 11—(P)—A dis- Patch from Vera Cruz said strong winds began to lash the port there Monday night and that the storm was expected to grow into tornado pro- Portions Tuesday. All rivers on the Central Chiapas Plateau were report- ed flooded, following 24 hours of tor- rental rains. Several towns were threatened. ‘RATTLESNAKE PETE’ DIES Rochester, N. ¥., Oct. 11—(P}— Peter Gruber, whose knowledge of venomous snakes made him interna- tionally famous as “Rattlesnake Pete” died at his home Tuesday. He was 16. MESSAGE @ A patented slotted center, and easy- flexing end sections make the Gillette BLUE BLADE instantly adjustable to the requirements of your face and beard. You can prove the importance of ithis feature yourself. Try the Gillette Blue Blade tomorrow moming. $250,000 Distributed To Counties in State Checks totaling $260,000 are being distributed to the various, counties for county highway aid as a part of the state gasoline tax for the quar- ter ending Sept. 30, State Treasurer Berta E. Baker announced Monday. Cass county received the largest amount, $23,328.75, with $13,998.75 going to Ward county and $13,199.75 to Grand Forks county. Distribution to other counties in- cluded: Adams, $2,675.75; Billings, $746.00; Bowman, $2,318; Burleigh, $8,552.25; Dunn, $2,656.50; Emmons, §3,445; Golden Valley, $1,804; Grant, $2,975. 25; Hettinger, $3,795; Kidder, $2,62 Logan, $2,296.75; McHenry, $5,638.7! McIntosh, $3,096; McKenzie, $3,612. McLean, $6,267.25; Mercer, $3,008; Morton, $7,158; Oliver, $1,239.7! Sheridan, $2,453; Sioux, $1,108.5 Slope, $1,518; Stark, $5,935.50; and Wells, $4,692.25. Indian Veterans to Discuss Bonus Plan Gettysburg, S. D., Oct. 11.—(P)—A soldier's bonus for members of the Sioux tribe on the Cheyenne river Indian reservation west of here who served in the World War will be con- sidered by the general tribal coun- cil when it convenes at La Plant, Oct. 11 and 12, it was announced by Luke Gilbert, chairman of the council. A resolution giving each ex-service- man of the tribe $400 in cash and 160 acres of land, will be presented to the council by members from the Eagle Butte district, Gilbert said. The cash bonus is to come from the tribal lands. There are two dozen ex-service-men on the reservation. 16 Bismarck Persons Listed in ‘Who’s Who Sixteen Bismarck persons are list- ed in the latest edition of “Who's Who,” American blucbook of accom- plishment. The state list contains 91 names, Grand Forks leading among the cities with 24. Fargo has 15. Minot five and Valley City four. ‘The Bismarck list contains the fol- lowing names: Isaac P. Baker, Lu- ther E. Birdzell, Edward T. Burke, John Burke, Alexander C. Burr, A. M. Christianson, Thomas Hall, Wil- liam Langer, George D. Mann, James Morris, Wil- liam L. Nuessle, Bertha R. Palmer, Eric P. Quain, George F. Shafer and Vincent Wehrle. Deadwood Youth Held After Shooting Father Deadwood, S. D., Oct. 11—(P)— Ralph Gaughan, 15, Deadwood, is in the county jail here following a quarrel with his father, Patrick Gaughan, in which the latter wis shot and wounded fatally Monday night. According to police, the son said Clarence B.. Little. ND, PRESBYTERIANS ASSEMBLING IN CITY FOR STATE MEETING Sessions to Open Wednesday Night With Divine Worship, and Reception Presbyterians from all parts of North Dakota were gathering in Bis- marck Tuesday for the opening here Wednesday evening of the 48th an- nual meeting of the Synod of North Dakota. Sessions will be held in the First Presbyterian church here with Rey. G. W. Stewart, Mandan, as moderator and Harry W. Gill, Portal, | 88 stated clerk. | The convention will open at 7:30 p. |™., Wednesday with divine worship, |® sermon by Rev. Stewart as retiring moderator, the Sacrament of the Lord's Supper, a constituting prayer, the report of Rev. F. E. Logee, pastor of the local church, as chairman of the committee on arrangements, and @ reception in the church parlors for the members of the synod. a. m., Thursday with the election of a moderator and temporary clerk, ap- Pointment of a vice-moderator and the appointment of standing com- cial business, minutes of the general j assembly, records of the presbyteries, tribal fund and the 160 acres frori} finance, correspondence and mileage. Introduction of corresponding mem- bers will be followed by reports of the Stated clerk, treasurer, trustees and tion, Rev. S. Doty, Oakes, chairman, Many Reports Listed Other reports will be given as fol- lows: Committee on necrology, Re' B. A. Fahl, Devils Lake, chairmai E. Webber, Jamestown; Historical Committee, Rev. J. C, Wilson, James- W. Huey, Bottineau; sions, Rev. D. K. Ford, Stanley. |D. D., St. Louis, will close the Thurs- {day morning session. | __ At the afternoon session, Rev. H. E. Dierenfield, Minot, will report the committee on program and field activities; Rev. W. R. Harshaw, D. D Minneapol er meeting conducted by Rev. Logee; report of the committee on national j missions by Rev. Gill; report of the | Synodical executive by Rev. W. C. Snider, Fargo, and an address by Rev. J. C. Somerndike, of the Board of Na- tional Missions, New York city, also are on the program. Recess at 4:30 p. .. Will be follow- marck and Mandan. Plan Complimentary Dinner A complimentary dinner his father was mistreating him. As| served Thursday evening by the Pres- the father reached for his throat, the shot striking the father in the Tight chest. Gaughan, 45, died later at a hospi- tal. song service. Addresses are: National Missions,” Mrs. Agnes Bell Sessions will be resumed at 8:45} mittees on bills and overtures, judi- | jchurch representatives on the North} : Dakota Council of Religious Educa- | evidence that underlying conditions | have changed definitely, and that im- | lily by extraneous influences, but not Young People’s Conference, Rev. J.|Teversed for any extended length of | | town; American Bible Society, Rev. J. foreign mis-|months on merchants and manufac- |__ An address by Rev. J. E. Detweiler, | | quality, in contrast to the emphasis for ,| firms to jeopardize their standing by the Foreign Missionary,” by Rev. De- tweiler. At the Friday morning session, Rev. Wilson will report for the committee on pensions; Rev. D. D. Meyers, New| York, will speak on the work of the| church board of pensions; Rev. B. H.! Kroeze, Jamestown, will report for the committee on Christian education and H. M. Taber, chairman of the board of trustees of Jamestown Col- lege, will present a report for that institution. A representative of the board of Christian education also will speak. The Friday afternoon session will be given over to the reports of con- vention committees and the selection | of the next convention city. Following a devotional song service Friday evening, the Presbyterian League of the Bismarck Presbytery will present a pageant, “America Grows Up,” to close the convention. BUSINESS ANALYSTS. NOTE INPROVENENT Commercial Firm Says Position | Now Is Better Than That of a Year Ago | Continued improvement in the fac- tors underlying business expansion are noted in the weekly business re- view of R. G. Dun and_ company, commercial statisticians. This firm's analysis of the current situation fol- lows: “The final quarter of a_ difficult year has opened with business in a stronger position than it was three months ago, and decidedly improved over the status at the comparative | period in 1931, offering irrefutable provement will manifest itself as! time goes on. The economic trend is expected to be interrupted temporar- time. “Fear of severe inventory shrinkage has lost the grip that it held for many turers alike, and production now is in tighter control than in nearly a de- cade. The marked change in consum- er preference for merchandise of good that was being placed a year ago on price appeal solely, will force fewer adopting the policy of selling inferior goods at cheap prices in order to build sales volume.” INFORMATION IS DEMANDED Washington, Oct. 11. — (®) — The civil service commission Tuesday called upon John F. Costello, Demo- | District of Columbia, to furnish any |information he had of “intimidation ed by an automobile drive about Bis-|and petty tyranny,” to prevent gov- | will be) cratic national committeeman for the BURLEIGH RESIDENT DIES AT FARM HOME Frederick Sabot, 74, Believed to Have Been Victim of Heart Disease Frederick Sabot, 74, who came to |Minn,, and John, Emil and Vincent, | all of Burleigh county. Funeral services will be conducted in St. Mary's church at 9 a. m. Thurs- day with Rev. Father John Slag of- ficiating. Burial will be in St. Mary's ceme- tery. Cash in With a Tribune Want Ad Burleigh county from France 44 years | ago, died at his farm home in Gibbs | township at 2 p. m. Monday after an} illness of only a few hours. In poor health for the last five years, he is believed to have been a victim of heart disease. Sabot came to America in 1888 with his wife shortly after his marriage in France. He took up a homestead south of Bismarck and a few years later moved to a farm in Gibbs town- ship, where he had been a prominent farmer up until the time of his death. Besides his widow, he leaves a county and four sons, Fred, Duluth, Good News! PREVENTING colds Used at that first stuffy, sneezy irritation —Nature’s usual warning that a cold is coming on—many colds are avoided altogether. Amaz- ing relief, too, for Makes Possible | Vicks Plan for Better CONTROL-OF-COLDS ernment employes from voting. ‘TIMBER LO: have no place Seattle, Oct. 11—(!—Timber losses | byterian church of Bismarcx andj from recent forest fires in Oregon the boy reached for a rifle and fired,| Mandan, followed by a devotional and | were estimated Tuesday by the West | scheduled |Coast Lumbermen’s association at “Presbyterian Responsibility for | “approximately one bililon board feet or about one-third of the probable Snively, New York; and “Why Retain | production of all mills in 1932.” —and raw This new aid in preventing colds and Vicks VapoRub for treating colds form the new | Vicks Colds-Control Plan. Used as directed in each pack- age, Vicks Plan makes it pos- sible for you this winter to cut the number and costs of colds inyourfamily more than half! Cuts Costs of Colds in Half numbered 20 to 1 Empire—as descri daughter, Mrs. H. B. Tucker, Burleigh | “Nature in the Raw”—as portrayed by the noted artist, Karl Godwin... in- spired by the fierce and brilliant assault by Clive and a handful of followers, out- bloodthirsty natives at the Battle of Plassey—the birth of the British Indian Henty book, ‘With Clive in India.” tobaccos CAPITOL —== THEATRE Matinee at 2:30 — 25¢ Evening 7 - 9 — 35c LAST TIMES TONIGHT Politics was his i | sion. Love was his pastime. Tomorrow “Thirteen Women” The book that fascinated a million women. by savage hordes of bed in the famous in cigarettes They are not present in Luckies --. the mildest cigarette you ever smoked Ze ber See te very foe to baccos in all the world —but that does not explain why folks everywhere regard Lucky Strike as the mildest cigarette. The fact is, we never overlook the truth that “Nature "If a man write a better book, in the Raw is Seldom Mild”—so these fine tobaccos, after proper aging and mellowing, are then given the benefit of that Lucky Strike purifying process, described by the words— “It’s toasted”. That’s why folks in every city, town and hamlet say that preach a better sermon, or make better moust-srap than bis mcighber, the he build bis house in the woods, the world will make « beaten path to bis deor.”’ RALPH WALDO EMERSON. Does not this explain the world-wide acceptance and approval of Lucky Strike?