BORROWED BONDS

One of the prides of Hartford, Conn. is Hartford Electric Light Co., nationally known as a model utility. It has no truck with holding companies, has only common stock (few bonds), has constantly slashed its rates. Head of this white sheep of the utility industry has long been genial old Samuel Ferguson, who four years ago moved up to chairman, turned over the presidency to handsome, Danish-born Viggo E. Bird. Last week, to Hartford's openmouthed horror, Viggo Bird turned out to be an embezzler.

This was the closest scandal had ever come to Hartford Electric Light Co. and it went no further. Viggo Bird resigned at once and Samuel Ferguson resumed the presidency, announced that the embezzlement did not involve the utility but New London Northern R. R. Co., of which Viggo Bird was treasurer.

Few days later, Bird pleaded guilty to hocking $160,000 worth of the railroad's bonds with four banks as collateral for personal loans. Flushed, but holding his handsome head high, Mr. Bird heard the prosecutor accuse him of living beyond his means, speculating in the market, and having a "hunger" for directorships. Then Bird's lawyer, George H. Cohen, rose to tell the story behind the crime. His story:

Born in Copenhagen 54 years ago, Viggo Bird came to the U. S. at 18, graduated from M. I. T., and married on a $2,000-a-year income from Stone & Webster. Slowly his salary rose to $40,000, but debts rose faster. First his wife had a $1,500 operation. Then his son got tuberculosis and Viggo Bird borrowed $9,000 to finance a cure in Switzerland. Just before 1929 his brother lost $30,000 belonging to their mother. Viggo Bird assumed the debt.

Then he met a broker named Drexel (now a fugitive) who got him into the stock market in a small way. In the summer of 1929 Drexel invited the Birds to a summer camp with no telephone. While they were there, Drexel told Bird's secretary that her employer wanted her to arrange a $10,000 loan from the bank. She used her power of attorney to obtain it and Drexel bought $100,000 worth of stock on margin in Bird's name. Before Bird could extricate himself, the crash had come and he was short $239,000. He borrowed that amount from a friend.

Since then, said Lawyer Cohen, Viggo Bird has made $304,000, paid $190,000 of it to the unnamed lender. This left only some $114,000 ($11,400 a year) before income taxes to support his wife and four children. Mrs. Bird frequently did her own washing and the girls sometimes scrubbed floors and cooked. Their moderate-sized house was beautifully kept, but they drove a Ford. Finally the strain got too great. Thinking the market was going up, Viggo Bird embezzled.

Last week, he was visibly glad the strain was over. He made good all but $30,000 of the loss, offered his house to reduce the deficit further, said he wanted to take his medicine. Impressed, the judge let him off with two to five years in State prison.

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