IVAR KREUGER

Hokitika Guardian, 26 September 1932, Page 8

IVAR KREUGER

MERELY a swindler. ASTONISHINOTRICKERIE^ When Ivar Kreuger, the Swedish inatch kipg, died a few weeks wrdte a lidftdeh corespondent in May, he was hailed as a cblossus 1 of international finance. Now we know that Ivas a Swindler whose trickeries were or vast extent and astonishing, success. ' / Ivar Kreuger' was' corrupt from the beginning. There was no solid business enterprise, even in the Kalmar match factory which set. him, upon his career* Thb fiiatcK Business was founded by his grandfather, 'Wlio had only three men Working for him: As there seemed to he no opening at Kalmar, Ivar Kreuger itaigrated 'to ’the United' States. Here' he became familiar with ideas of. amalgamation, which -he proceeded ..to put into practice when the Kalmar factory eatoe under his control in 1912. A pro-,.

; qess ; Of Steady absorption extending 4 over five years enabled. Kreuger to amalgamate with his rivals, 1 so that iby 1917; he-was' fiiankgirig directbr d'' a Swedish match company which coh-. trolled eighteen factories. A few years *■ liter the company 7 had -grown. ifitor the (Swedish Match Combine, with factories' in forty countries, controlling, thegreater part of the world's production Barefaced Bribery. J ‘ Apparently this achievement-Was brought about by bare-faced bribery j and swindling." Such coiifitHes as Geiy, t lhpy, wahted niqhey; and Kreuger v ; • efferCd millibfiH" iii‘ ejtcbangg for further match, As ■'a' fhct, Kf eiigef ( chn-; trdl .ed' hnlimited; ‘ ‘pa per, ’ * rathe’r> thanreal money; Bankers all Over Europe: and ‘the United States knew liilfi.-so ■ vfell "that" they accepted his stateirtentsi Without explanation. The tlohg in Sweden have; revealed that oh qne occasion Kreuger deppsiiticlW'a« bundle of ? Coupottg with a bank, which * he-described as representing 400,000,000 francs; The manager put the coupons in :his strohgroom 'and gaveareceipt.; A >day or so later the' coupons wqre coiinted, and they amounted only to 5,000,000 frfincs. In the . meantime K?euget*had ; ’ shown the 400,000,000; frhne reeeipt t<? other bankers,- and ; ha£F‘ used it for megotiatihg further business; When the 1 first- “error”'• -was pointed‘ onf; 'Kreuger at once admitted his mi?-, take, {ind ' withdrew the deposit without -arousing :thfe - least 'suspicion; ■ito.. ! v.. :'.•>• ... Most Imposing Fraud.. ! * •' : Perhaps Kreuger’s most imposing, '.fraud*-was the. forging, of-; forty Italian Treasury -bills, representing:£2B,soo,ooo,. ; He had -commenced, negotiations OWith Mussolini for- an Italian- match.omono* poiy,w but the plan; ..never reached’ m»dmritv. riyAnr exchange n -of ■ however,"; enabled* dKyengev to procure 4 the, signatures necessary to ■iorging- tht" Italian .bonds; - which, figured • later - asa'skets in a .Kreuger . and Toll : balance-;.' sheet.' - 'Another?ymethod of -• raising, >. fund's* twas to-establish, ft; -private - bank. aiid-nthem to ‘credit Wwiewti with;..m6neysr which were alleged- to • bedeposited with thee bank. Thu& Kreui-ger-;«sthblishetl. the International 'fln<l. Fcnanzurungs AjG, at Danzig,, and credited‘the • Kreuger and Toll balance* sheet- Of 11980 ' with' £3,000,000 • - cash: which was said? to be -in >thd pcsseSsiop of". International and Finanzuruug** . v' > At-< ihe . time :the bank-existed orily>oh papery thonghvit came • into fieii% <S».tei. .»«.• -v. ,

A Grot* Libertine. After business hours Kreuger never associated-.with' ;bu siness acquaintances.: iand ihe^was'-igenerally, credited spending most qft his -nights in - evolving his worldisbakfcering financial schemes-. He was, aim: fact, a gross 1< ?ctine: He never cared - for' sport;:'. hut he spent, 'anger sums■ of .anoneyrmpon- tfieafcciqalr enterprises, particularly -Tor, wards; >the end,r some, oi hisi cbUsines::; asflfociatesin New York- Paris anddßferUn, became'suspicious, sod, Krueger, •ivas called upon for explanations.' Prom New, York, 5 Kreuger i-: went-' ’ where he found aj telegram from Berlinrequiring.' anirmnediate; explftnation pf; pertain transaction*,-. :About <rtbe* same tinje-two.t pf; 'his •.•Krenchi".’ codirectors seem ’-to.' have displayed unwonted c.ii:iosity,- Realising that- he could not escape, Kreuger said, “I, will answer yoUr« questions to»m<vrowj” He went oufci bought s a revolver, and. returning, to this V. flat 5 - .in the,■ Arenne; .Victor Fa iumnnelllT., shot hir self through, the' hearty -v -• •