International Match Corporation - 1927 dated $1,000 Gold Bond - Great History - Kreuger & Toll
Inv# GB5220 Bond
Orange $1,000 5% Gold Bond. ABN Co. 18 of Most coupons remain.
Kreuger & Toll, a construction and holding company, was established on May 18, 1908, by two Swedish engineers, Ivar Kreuger and Paul Toll. Henrik Kreüger, Ivar’s cousin, served as a consultant and chief engineer.
In early 1908, Ivar and Henrik Kreüger had the ambitious plan to establish a construction company that would work for the US company Trussed Concrete Steel Co. on the Swedish market. Their goal was to promote Trussed Concrete Steel Co.’s innovative building methods based on reinforced concrete. At the same time, Henrik Kreüger introduced Paul Toll to Ivar.
Ivar formed the company with Paul, who had several years of practical experience in the construction business as an engineer. Paul had previously served as the site manager for the Swedish construction company Kasper & Höglund AB.
On May 18, 1908, Kreuger & Toll was officially founded with a total start capital of 10,000 SEK. The company was structured as a construction company, with Ivar Kreuger owning 60% and profits being split 50/50. The initial capital was raised by the banker Oscar Rydbeck, who became Ivar’s primary bank contact and economic advisor throughout the company’s history, except for the infamous Kreuger crash in April 1932.
On August 10, 1911, Kreuger & Toll underwent a legal transformation and became an AB, officially known as Kreuger & Toll AB.
Ivar Kreuger also had made complex transactions that no one else except himself knew about. Only Kreuger had the full view of how the company was built up. A summary of the economics for the holding company Kreuger & Toll AB, including the American holding company IMCO, excluding the construction business within Kreuger & Toll Construction AB, was carried out in 1943, showing the following figures. Actual profits generated from 1917–1932: 151 million SEK (in year 2007 equal to 4 000 million SEK). Actual return value to owners of shares and debentures, 1917–1932: 668 million SEK (in year 2007 equal to 18 500 million SEK). To cover this huge gap, analysts have claimed that Ivar Kreuger's intention was probably to slowly increase the match prices as soon as he had gained control of the entire match production in the world, parallel with the increased profits from his industrial companies that soon became a large part of the holding company's business, and continuously increasing during 1930, while the match industry had a tendency to slowly decrease in importance. Swedish Match and Kreuger & Toll AB holding company headquarters was the Tändstickspalatset (Matchstick Palace) with the address Västra Trädgårdsgatan 15 in Stockholm, where Ivar Kreuger had his Swedish office. The house was built by Kreuger & Toll Construction AB. The main office for the Swedish Match remained in the same building until 1991. Read more at https://en.wikipedia.org/wiki/Ivar_Kreuger
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.
Ebay ID: labarre_galleries