STINNES TRUST.

Press, Volume LXI, Issue 18402, 8 June 1925, Page 9

STINNES TRUST.

REPORTED COLLAPSE. FINANCIAL DIFFICULTIES. («T CABLE —PRESS ASSOCIATION— COPIBIOHT.) (AUSiaAUAN AKD V.Z. CABLE ASSOCIATION.) BERLIN, June 5. T,he Stinnes Trust is splitting up. The proposed reorganisation has been brought to a head by the withdrawal, owing to family differences, of Dr. Edmund Stinnes. The task of controlling the vast interests proved an overwhelming burden for Hugo Stinnes, junior, who stated that the bankers were not curtailing their financial policy towards tho trust, and were, indeed, willing to extend their credits if necessary, though there had been great anxjety during the transition from the inflation period. There had also been a slump in the circulations of the Stinnes newspapers. Under the heading "Stinnes Collapses," "Vorwaerts" declares that the trust has experienced an extremely rapid breakdown. Amsterdam reports from Berlin state that tho trust has been unable to meet ita liabilities abroad amounting .to 120,000,000 marks, while efforts to obtain new credits in the United States have failed.

BANKS TO THE RESCUE. (AUSTRALIAN AND N.Z. CABLE' ASSOCIATION.) (Received June 7th, 5.5 p.m.) BERLIN, June 6. The Bourse is depressed, fearing that the failure of the Stinnes concerns is the forerunner of similar trouble. The big banks, with the co-operation of the Reichsbank, are coming to the rescue of the Btinnes Trust with forty million marks to prevent the complete collapße of the organisation, which has encountered a financial crisis, allegedly due to taking up too many, short-term credits, which it is unable to meet upon maturity.