251.11 Insull, Samuel/121: Telegram

The Secretary of State to the Chargé in Greece (Morris)

17. Your despatch No. 2386, March 18. The Department desires you to request personal interview with Greek Foreign Minister and to inform him orally and in strictest confidence that Federal authorities, as result of involuntary petition in bankruptcy filed on April 18, 1932, against the Corporation Securities Company of Chicago, have been investigating affairs of that Company and operations of its officers among whom is Samuel Insull. United States Attorney at Chicago is preparing to obtain indictments charging accused officers and agents on five counts with unlawfully, wilfully, knowingly, feloniously and fraudulently transferring to Northern Trust Company, National City Bank of New York, Continental Illinois Bank and Trust Company, and Central Hanover Bank and Trust Company, in contemplation of bankruptcy of Corporation Securities Company and while the Company was insolvent, assets of the Company amounting approximately to $2,330,820 with intent to defeat the Federal Bankruptcy Acts.

Inasmuch as proposed indictment of Insull is based upon facts entirely unrelated to those set forth in connection with previous request for extradition, it is contemplated in view of statements in paragraph 4 of Greek Foreign Office note of March 7,34 to submit to Greece new request for his extradition.

The Department wishes that you discuss matter with Foreign Minister in spirit of paragraph 7 your despatch No. 2386 and telegraph his reaction as well as any suggestions which he has to make.

In order to prevent flight of certain other defendants now within jurisdiction of the United States, please stress need of strictest confidence and earliest possible reply.

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If Insull attempts flight you should take such steps as you may deem proper to prevent it.

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