Further Oustric

That amiable greybeard Prime Minister Theodore Steeg lost three members from his already enfeebled ministry last week,* but guaranteed the life of his government for at least three weeks by adjourning Parliament until the second Tuesday in January, the fateful 13th. The political spot-light shifted from the Chamber of Deputies to its parliamentary commission investigating the famous Oustric Scandal. Observers realized that until former Prime Minister Andre Tardieu was completely whitewashed of any complicity in the swindles of Banker Albert Oustric it would be impossible for him to succeed to the prime ministry on the fall of the Steeg cabinet, a move which many French newspapers continued to urge last week. Nervy, plump-cheeked Albert Oustric started his career before the War as plain "Albert," a white-aproned waiter in a Toulouse cafe. A little influence kept him out of the trenches, got him a berth in a munitions factory. After the War he started speculating. Financiers doubted last week whether he ever actually made much money, but with all the nerve in the world he rode high on the wave of French inflation, established Banque Oustric et Cie, later was able to buy control of the Banque Adam, the oldest bank in France. Then his method was the old established one of buying out a number of companies in the same industry--shoe companies were at first his favorite--consolidating them, selling stock in the merger at four or five times its actual value. Came the Wall Street crash and World Depression. Banque Adam, Oustric et Cie and other Oustric companies failed for a total of $56,000,000. Among the many roars of protest from bilked investors it was loudly charged that Raoul Peret, Minister of Justice, had been receiving secret sums from the Oustric bank. Prime Minister Tardieu defended his minister in the Chamber, was booted out of power by the Senate (TIME, Dec. 15). Last week the Oustric case grew hotter & hotter. Clement Moret, governor of the Bank of France, testified that in 1926 as an official in the Ministry of Finance he had published a favorable report on one Oustric stock, an Italian artificial silk company known as Snia Viscosa, at the direct order of M. Peret, then Finance Minister. Later testimony showed that the then French Ambassador to Rome, Rene Besnard, had received large sums from Oustric after recommending this same company for listing on the Bourse. Andre Tardieu still remained unsullied personally last week. Cynics wagered that any more damaging testimony would bring the entire affaire Oustric to an abrupt close.

* The Minister of Pensions, Under Secretary of Agriculture and Under Secretary of the Interior, all members of the Right, resigned when they heard that Steeg had received Socialist support for his tottering Cabinet by agreeing to a disarmament program.

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