Friends of Insull, Cont'd

Fortnight ago it was revealed that 205 of Samuel Insull's friends were allowed to buy his Insull Utility Investment shares at $12 before the public got them at $27 (TIME, Oct. 3). Last week was uncovered another, larger inside scheme of the same kind--a 115,000-share syndicate list for I. U. I. shares at $50 when the market value was $59.25. The 250 members put UP 5% cash, later another 15%. Some did not pay the final assessments, may be sued by receivers of the company. All lost money on the venture. Part of the list:

Mayor Anton Joseph Cermak

John Daniel Hertz (Paramount Publix, Yellow Cab)

Oscar Hewitt (longtime financial writer on the Chicago Tribune, "released" last week on publication of the list)

Michael Lambert Igoe (delegate. Democratic National Convention of 1932)

William Lorimer (onetime U. S. Senator)

Rosa Raisa (Chicago Civic Opera)

George McClelland Reynolds (Continental Illinois Bank & Trust)

Patrick Roche (chief investigator of State's Attorney's office)

David Edward Shanahan (speaker of the Illinois House of Representatives)

James Simpson (present head of the Insull operating companies)

Frank Leslie Smith (Republican National Committeeman)

Clement Studebaker Jr. (president, North American Light & Power)

Edward Foster Swift (late head of Swift & Co.)

Gerard Swope

Joseph Patrick Tumulty (President Wilson's secretary)

Melvin Alvah Traylor (First National Bank of Chicago)

Owen D. Young

Other Insull developments last week included receivership of Chicago North Shore & Milwaukee, model Insull-controlled interurban electric line. The road was unable to pay interest and taxes. Meanwhile, as State and Federal inquiries continued, louder & louder grew the clamor for the return of Samuel Insull and his son from Paris, of Martin John Insull from Canada. Each of them last week received a communication from State's Attorney John A. Swanson: "Revelations . . . disclosed by my investigation make it imperative that you return . . . for questioning. Advise by cable if you will return voluntarily."

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