Deal Closed

Last week International Telephone & Telegraph Corp. acquired full title to 610,000 shares of L. M. Ericsson Telephone Co. of Sweden, giving it 20% voting power. Control of the company was held by Kreuger & Toll Co., and I. T. & T. had planned to buy a larger block until it was discovered that the Ericsson accounts were garbled. The shares received last week are in return for an $11,000,000 down payment made by I. T. & T. and end the relationship between I. T. & T. and Kreuger & Toll. It was I. T. & T.'s discovery of irregularities in Ericsson that started the chain of discoveries leading to the collapse of Kreuger & Toll. I. T. & T. last week reported a nine-months' net loss of $1,379,000 against a $6,591,000 profit in the same period last year. But its big subsidiary Postal Telegraph & Cable lost $1,233,000 in the same period, which was $14,500 less than its 1931 nine-months' deficit.

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