Episode 80: A Mess Of Things
Secrets are unleashed when two wealthy industrialists find themselves in different dire straits only to make the same permanent fatal decision.
In March 1932, both Swedish “Match King” Ivar Kreuger and George Eastman commit suicide but for very different reasons. Kreuger’s empire falls apart after bad dealings, while Eastman suffers ill health. The impact of their deaths joins a long list of recent prominent suicides and a rising disturbing trend.
Other people and subjects include: Barbara Hutton, James Donahue, Princess Mary McCormic Mdivani, Prince Serge Mdivani, Samuel Insull, Mary Pickford, Douglas Fairbanks, Greta Garbo, Jonathan Kenneth Galbraith, Kodak camera, Eastman Kodak, Wall Street of 1929, Great Depression, 1930s suicide statistics, 1931-1932 Columbia University study, suicide prevention group, 1932 Top 10 Stories, Massie Trial, Lindbergh baby kidnapping, HBO documentary Weight of Gold, Olympics, Olympians, Michael Phelps, Jeret “Speedy” Peterson, Steven Holcomb, Sasha Cohen, Apolo Ono, Lolo Jones, Katie Uhlaender, African safari, American Museum of Natural History, euthanasia, financial scams, Ponzi scheme, shell games, embezzlement, boiler rooms, stock peddlers, larcenists, fraud, Enron, Enron Vice Chairman J. Clifford Baxter, Bernia Madoff, Silicon Valley Bank, Joe Rogan, Youtuber Coffeezilla Stephen Findeisen, crypto currency, Cryptozoo, Logan Paul, FTX, Sam Bankman-Fried, Celsius, Alex Mashinsky
Archival Music provided by Past Perfect Vintage Music, www.pastperfect.com.
Extra Notes / Call to Action:
YouTuber Coffeezilla
Exposing Scams on Joe Rogan
https://www.youtube.com/watch?v=5t9AQX0Hd9o
Exposing a Billion Dollar Fraud (Celsius)
https://www.youtube.com/watch?v=d3d8bRDAP3s
For those facing suicidal thoughts, please reach out to —
National Suicide Prevention Lifeline 1-800-273-TALK or 1-800-273-8255
Or other organization are to listen and help.
Share, like, subscribe
Publish Date: March 17, 2023
Length: 23:21
Opening Music: My Heart Belongs to Daddy by Billy Cotton, Album The Great British Dance Bands
Section 1 Music: These Foolish Things by Benny Carter, Album Perfect Blues
Section 2 Music: Lost In A Fog by Coleman Hawkins & His Orchestra, Album Nightfall – Sophisticated Jazz Classics
Section 3 Music: Nightfall by Benny Carter & His Orchestra, Album Nightfall – Sophisticated Jazz Classics
End Music: My Heart Belongs to Daddy by Billy Cotton, Album The Great British Dance Bands
AS THE MONEY BURNS
Podcast by Nicki Woodard
Episode 080 – A Mess Of Things
00:00
[Music – My Heart Belongs to Daddy by Billy Cotton, Album The Great British Dance Bands]
AS THE MONEY BURNS is an original podcast by Nicki Woodard. Based on historical research, this is a deep exploration into what happened to a set of actual heirs and heiresses to some of America’s most famous fortunes when the Great Depression hits.
Each episode has three primary sections. Section 1 is a narrative story. Section 2 goes deeper into the historical facts. Section 3 focuses on contemporary, emotional, and personal connections.
00:30
Story Recap
The world’s most famous baby Charles Lindbergh Jr. has been kidnapped, and Evalyn Walsh McLean is determined to help in his recovery.
Now back to AS THE MONEY BURNS
Title
00:45
A Mess Of Things
[Music Fade Out]
Episode Tag
Secrets are unleashed when two wealthy industrialists find themselves in different dire straits only to make the same permanent fatal decision.
*Please note this episode focuses on topics related to multiple suicides.
01:10
[Music – These Foolish Things by Benny Carter, Album Perfect Blues]
Section 1 – Story
[Music Fade Out]
01:23
Friday, March 11th, 1932 in Paris, France
Over the years, the former Swedish civil engineer turned industrialist 52 year old Ivar Kreuger has finagled business dealings into controlling anywhere from two thirds to three quarters of worldwide match production. Yes, those little sticks behind man’s ability to control and spark a fire.
Earlier business involves concrete and construction before switching to take over his father’s match business and growing it into a major power. Kreuger even dabbles in the film industry becoming the major shareholder of the company AB Svansk Filmindustri in 1919. In 1924, he hosts a party with Mary Pickford, Douglas Fairbanks, and Greta Garbo.
In 1929, Kreuger controls the majority of shares in the telecommunications Ericsson. By 1930, he has an estimated 400 companies under his control.
02:20
On the surface, he is a success while playing a little bit fast and loose. Since he pays large dividends, few complain or pay attention to his actual dealings. Below the surface, a complete an utter mess. Kreuger is a gambler both in his personal life and in business. He leverages one company against another, maneuvers and swaps around money in a most convoluted shell game, even runs a semi-Ponzi scheme using new money to pay off old investors.
He is running high on debt, taking out multiple multi-million dollars loans around the world from 1925 to 1930. The total is around $387 million in 1930 (eh-hem that’s $6.9 billion in 2023).
After leaving his advisors prepping for a meeting in Berlin in two more days where he must admit to financial insolvency and potentially bankruptcy, Kreuger returns to his Parisian apartment.
03:18
Saturday, March 12th, 1932
The next morning after 10:45am, Kreuger sits on his bed contemplating his choices. He picks up a 9mm semi-automatic.
At 12:10pm, his body is found by servants, and the French police and a physician immediately arrive on the scene.
Kreuger leaves behind a sealed envelope with 3 more sealed envelopes inside.
In one note, Kreuger writes in English to his vice president Littorin –
I have made such a mess of things that I believe this to be the most satisfactory solution for everybody concerned. Please, take care of these two letters. Also see that two letters which were sent a couple of days ago by Jordahl to me at 5, Avenue Victor Emanuel are returned to Jordahl. The letters were sent by Majestic – Goodbye now and thanks. I K
After his body is found, the news announcement is delayed for another 8 hours, due to the 6 hours left on the New York Stock Exchange.
His body is taken back to Sweden where it will be cremated.
His death unleashes another effect known as the Kreuger Crash as investors and companies associated with him are all impacted. Over 600,000 investors will be collateral in the fallout.
04:44
Meanwhile an ocean away,…
Monday, March 14th, 1932 in Rochester, N.Y.
Inside a large elaborate mansion filled with flowers, the owner George Eastman’s greenhouses are known for their orchids. Several dens filled with big game trophies, the top floor has a private laboratory and private kitchen where Eastman likes to bake chocolate cake or lemon meringues. He has friends over for lunch with delightful chatter. He bids them well, and after they leave he hobbles his way back to his bedroom chamber.
77 year old George Eastman has been suffering for the last two years with a disorder of the spine. He has trouble standing and walks with a slow shuffle. The lifelong bachelor had watched his mother Maria Eastman’s slow decline confined to a wheelchair until her death in 1907. His father died from a brain disorder in April 1862 and an older sister Kate suffered from polio and died late in the year 1870 when Eastman was 15. He remained devoted to his mother, and her death took him a long time to overcome.
05:58
In the 1870s, Eastman works as a bank clerk when he takes an interest in photography. After some photography lessons, he develops a machine for coating dry plates in 1879 then establishes with Henry Strong the Eastman Dry Plate Company in 1881. Eastman receives a patent for a film roll in 1885 and patents the Kodak camera which holds a roll with 100 exposures in 1888. Eastman creates the term Kodak – a strong name, easy to spell, and even better able to register a clear trademark after previous troubles.
After the customer uses the camera, they send it to the Eastman Rochester headquarters for development with $10. The company then prints each exposure, refills the film, and sends the camera and prints back to the customer. The camera is an immediate hit. Eastman coins the slogan, “You press the button, we do the rest.”
06:55
Constant innovation and near monopoly by both patents and acquisitions of rivals lead to rapid and dominant growth. With the rise of the motion picture industry, Eastman Kodak becomes the almost exclusive supplier until a 1911 anti-trust investigation results in a lawsuit. Kodak will continue growth through innovations in film and cameras.
By 1915, Kodak has 8,000 employees in Rochester, N.Y., and is worth $15.2 million (that would be $444 million in 2023).
07:25
In 1926 at 71, Eastman joins and partially finances $100,000 ($1.7 million today) African expedition for the American Museum of Natural History. Over the 4 ½ month trip, he never complains and sleeps on a canvas cot in mosquito country. At one point, a rhinoceros spots the party and turns towards them. Excited, Eastman grinds his little movie camera as the rhinoceros charges straight for him. He orders the hunter not to shoot until he has to – the beast is felled only 12 feet away from Eastman.
08:05
Now, Eastman faces debilitation, ongoing depression, and fears senility. Inside his bedroom, he picks up a gun and presses it against his heart.
Once worth over $120 million (that’s $2.6 billion today), upon his death Eastman is worth $20 million (or $436 million in 2023). Only his decrease in fortune is due to his philanthropy and substantial donations over his last few years. Beyond the University of Rochester, other recipients include Massachusetts Institute of Technology, Tuskegee Institute, at least $6 million in stock for Kodak employees, plus various institutions for music, technology, YMCA, YWCA, parks, and public services for medical and dental services. His entire remaining estate is bequeathed to the University of Rochester.
09:05
These two prominent deaths catch attention. Eastman is definitely a tragedy but the eulogies exemplify a dedicated and beloved man.
For the other, rumors abound. There’s a substantial amount of money missing. Kreuger might have cashed it out in gold and is hording it somewhere. The suicide is a hoax as he goes on the run. His cremated body – smelled of wax during burning. His own brother continuously claims Ivar was murdered.
Only time will tell what truths might come out…
09:45
[Music – Lost In A Fog by Coleman Hawkins & His Orchestra, Album Nightfall – Sophisticated Jazz Classics]
Section 2 – History & Historiography
[Music Fade Out]
10:01
Going back over the statistics on suicide. It’s a bit astounding. We have long heard the tales of mass suicides related to the Wall Street Crash of October 1929. However that supposed statistic fact is wrong. In the year 1929, more suicides had occurred in the summer and earlier in the year prior to the Crash. Though there are a few prominent suicides close to that event which seem relevant. The biggest is banker and investor J.J. Riordan (covered in Episode 26: Contagion).
Now here are some more reported statistics.
In 1930, it is estimated rate 20 per 100,000 commit suicide across the entire United States.
But 1931 saw a notable rise. For the entire year, there are 24,000 completed with an additional 30,000 attempts.
Then the rate doubles dramatically over the next two years. The main cause is determined to be ill health with very few related to financial difficulties. Sadly, the despondent come from all walks of life, including millionaires, socialites, even 3 ministers, 1 rabbi, and a Mormon bishop. In 1932, a Quaker missionary with his wife and son execute a death pact.
By spring of 1932, the estimate is 70 people per 100,000 will commit suicide a day.
11:27
In New York, the Save-A-Life League was organized over 25 years ago and is the only suicide prevention group. Its president Dr. Harry Warren believes over half the suicides could be prevented. The organization estimates that 1000 people are saved a year through its services.
Still the increase causes alarm. Research back then draws the somewhat biased conclusion that suicide is likely to happen by the more intelligent. The urge for prevention based on the need to preserve valuable members of society.
11:59
At a recent 1932 medical convention, Topeka, KS, neuro-psychiatrist Dr. Carl Menninger states, “Suicide is an important problem because it is apt to occur in superior individuals whereas murder or some other form of death is likely to involved people less important to civilization. If we can recognize the real motivating causes of suicide we can often save ourselves the loss of a valuable member of society either through psychological treatment or hospitalization.”
A recent 1931-1932 Columbia University survey reveals that persons who commit suicide are above average intelligence. Dr. J.W. Castroll explains, “Better intelligence leads to more education, more interests, more deeds, more responsibilities, more problems and greater difficulty in solving them, and the dissipation of the fear of death and its consequences.”
12:57
The recent onslaught of 1931 prominent suicides seem to support that fact. The list covers industrialists, capitalists, a New Hampshire Superior Court judge, an editor of Fortune magazine, former all-American fullback Knowlton Ames, famed caricaturist Ralph Barton, and lastly Barbara Hutton’s uncle James Donahue (discussed in Episode 57: Covered Losses)
Now in 1932, two famous bachelors George Eastman and Ivar Kreuger join the list. Kreuger’s death will also trigger another suicide of a prominent associate. There are 4 more industrialists to follow including a retired president of Standard Oil Company of Louisiana.
13:42
In December 31st, 1932, an article details the 10 biggest stories of 1932 –
No. 9 the Massie Case in Honolulu, covered in Episode 75: Fiery Eruptions
No. 4 Ivar Kreuger’s suicide
No. 1 the Lindbergh baby kidnapping
Other stories will include – No. 3 the upcoming Presidential election, No. 5 the Olympics, and No. 10 another historic transatlantic flight. It should be noted that No. 7 involves another U.S. company that will face a similar collapse resulting in the investigation of the utilities magnate Samuel Insull, previously mentioned as friend and confident to opera singer Mary McCormic – the second Princess Serge Mdivani – during her time in Chicago (Episode 54: Coldest End)
14:35
The Crash and other subsequent economic failures expose another trend and one also heavily related to prominent suicides – the crime of embezzlement. Embezzlement, Ponzi schemes, and shell games can all flourish as long as money is coming in enough to cover and hide losses, but when money becomes too low or worse stops then all else comes to the surface.
15:00
The larger than life Kreuger had touted his success on 3 principles – all being related to silence. But oh how that silence covered up so much and devastated so many.
Kreuger’s financial quagmire is quite a significant mess. There are the loans he made to European countries as they recover from World War I’s devastation, those total over $400 million. Now supposedly, his corporations had over $650 million in bank loans with less than $200 million in assets as shown in the following bankruptcy. Kreuger had issued so many bogus or convoluted stock certificates, debentures, some Ponzi maneuvering, and plus plenty of shell game trades using one company to bail or hide the other’s finances. Economist and intellectual John Kenneth Galbraith called Kreuger “the Leonardo of their craft” for stock peddlers, boiler room operators, larcenists, and similar disreputable swindlers intent on defrauding others.
The magnitude of Kreuger’s collapse will cause massive financial reforms. The size of the scam not seen again until Enron and Bernie Madoff, and of course we must wait for FTX and Silicon Valley Bank scenarios to settle down.
It seems every decade has at least one or more large corporation exposed, so who knows what will come out in these next few years.
16:30
[Music – Nightfall by Benny Carter & His Orchestra, Album Nightfall – Sophisticated Jazz Classics]
Section 3 – Contemporary & Personal Relevance
[Music Fade Out]
16:43
The pandemic has led to many troubling situations and questioning of how to handle such occurrences. From health to finances, nothing seems untouched.
In 2021, Canada recently expands its criteria for conditions within its euthanasia laws, which have already been in effect since 2016. There is naturally criticism, concern, and in contrast praise for such policies. George Eastman’s debilitating condition again brings up the question of euthanasia as a choice. Anyone who has watched a loved one suffering in endless pain has struggled with that realization. I have had several loved ones live harshly and painfully their last moments. Queen Elizabeth II’s last months and drop out from public activity was largely due to bone cancer. One of my most recent losses suffered heavily from that affliction, and I had to aid in their final moments of comfort.
17:39
Kreuger’s suicide is more reminiscent of those related to financial ruin, public scandal, or future criminal punishment – unable to face the consequences of his long ongoing choices. Much like how Enron’s former Vice Chairman J. Clifford Baxter committed suicide in his Mercedes Benz after agreeing to testify at a Congressional hearing on the company’s collapse but long before the actual proceedings occurred.
However both Eastman and Kreuger also show how the wealthy and/or grand public figures are not immune from taking such a fatal choice simply due to fortune or their otherwise enviable lifestyles.
18:19
The 2020 HBO documentary “The Weight of Gold” covers how Olympic medalists can struggle from 6 months to 1 year with suicidal thoughts after their defeats or victories. The readjustment to life after the completion of an all-consuming goal is very disorienting. The most decorated Olympian and swimmer Michael Phelps both narrates as well as discusses his own struggles. The documentary originally began as a conversation about one particular suicide 3 time Olympian and silver medalist aerial skier Jeret “Speedy” Peterson then gold and bronze medalist bobsledder Steven Holcomb died two weeks after his interview. The documentarians decided to expand the story to include the struggle of multiple athletes including silver medalist figure skater Sasha Cohen, two time gold medalist speed skater Apolo Ono, hurdler & bobsledder Lola Jones, skeleton racer Katie Uhlaender, and several others.
19:17
Then there is also the other side of scams. Recently, Joe Rogan on his podcast spoke with YouTuber Coffeezilla’s *Stephen Findeisen on modern scams especially with cryptocurrencies involving Cryptozoo and influencer Logan Paul, FTX and Sam Bankman-Fried, and Celsius Network and Alex Mashinsky. Coffeezilla comments that lawsuits will unlikely come from smaller investors who are hit the most by their losses, and in regards to Celsius several people committed suicide when they lost their life savings.
I will put in the transcript and notes sections links to Coffeezilla’s Joe Rogan clips and Celsius expose:
Coffeezilla – Exposing Scams on Joe Rogan
https://www.youtube.com/watch?v=5t9AQX0Hd9o
Coffeezilla – Exposing a Billion Dollar Fraud (Celsius)
https://www.youtube.com/watch?v=d3d8bRDAP3s
19:54
And even now as of this week in March 2023, panic is setting back in. The current financial crisis has run long enough that more Ponzi schemes and other shell games are being exposed. With those collapses, bank runs have started again, and forcing the government to step in to stop the madness before more devastation occurs.
The recent collapse of SVB – Silicon Valley Bank, which experienced recent bank runs as people rushed to withdraw money to prevent further losses. Those in the tech industry and Silicon Valley are heavily effected, potentially rumored including the likes of Oprah Winfrey and Prince Harry and Meghan Markle. SVB is the 16th largest bank in the country and might be the 2nd biggest bank failure in history.
As of this recording, the largest bank failures are No. 1 Washington Mutual in 2008 with $307 billion, No. 2 Silicon Valley Bank in 2023 with $209 billion, No. 3 Signature Bank in 2023 with $118 billion, and No. 4 Continental Illinois National Bank and Trust in 1984 with $40 billion.
21:06
It should be noted that the tales within our story eventually lead to much of the regulation today to prevent such losses from having larger impact and devastation. The fallout from Ivar Kreuger will be one of the most influential in structuring those reforms.
The benefit of discussing these parallel events is that we already know the end results decades later. And sometimes it really does take several decades for the truths, lies, and long term effects to be sorted out. The domino effect in the immediate and the future.
But also take that as a sign of hope. As dark as things get, the cycle will shift again to the positive. Some losses might not be recovered, but there is much more to life.
21:50
So please if you find yourself struggling, don’t give up all hope.
For those facing suicidal thoughts, please reach out to —
National Suicide Prevention Lifeline 1-800-273-TALK or 1-800-273-8255
That’s 1-800-273-8255.
Or other organizations are ready to listen and help.
If you enjoy As The Money Burns, then please share, like, & subscribe.
Hook
22:31
[Music – My Heart Belongs to Daddy by Billy Cotton, Album The Great British Dance Bands]
Next when we return to AS THE MONEY BURNS…
A popular tap dancer and a highly decorated World War I general both appear at a popular dining hotspot, so has the hostess finally solved her money troubles?
Until then…
Credits
22:54
AS THE MONEY BURNS is an original podcast written, produced, and voiced by Nicki Woodard, based on historical research. Archival music has been provided by Past Perfect Vintage Music, check out their website at www.pastperfect.com.
Please come visit us at As The Money Burns via Goodpods, Twitter, Facebook, or Instagram. Transcripts, timeline, episode guide, and character bios are available at asthemoneyburns.com.
23:21
THE END.