Alexander the Great

Nobody knew much about Alexander L. Guterma when he arrived in Wall Street five years ago. But he quickly showed himself such an expert in frenzied finance that he got control of F. L. Jacobs Co. (auto parts maker), Bon Ami Co. (scouring powder), Hal Roach Studios (Gale Storm Show), and the Mutual Broadcasting System. Last December Guterma's empire began to crumble.

The New York Stock Exchange suspended trading in Jacobs stock for failure to file financial statements. Last week SEC suspended over-the-counter trading in Jacobs and Bon Ami. When space was booked in Guterma's name on a plane to Ankara, SEC quickly obtained a warrant for his arrest, said that losses to investors would reach many millions. Picked up with him was a longtime financial associate, Robert J. Eveleigh, who was found in a Manhattan call girls' apartment fortnight ago when police raided it.

Mystery Man Guterma, 43, claims to have been born in Irkutsk, Siberia, though he speaks like a native New Yorker. His story is that he went to the Philippines in 1938 by way of China, managed to escape a World War II Japanese concentration camp. The war over, Guterma flowered as a trader, also obtained a bankroll from Philippine and Italian businessmen, which he brought to Florida in 1950 to start a project growing flaxlike ramie fiber. He then moved to Manhattan and with a partner opened McGrath Securities, a firm that often floated stock in his new companies:

P: Shawano Development Corp., marketed widely at more than $4, now (after a 4-for-1 split) offered at 8 1/2-c-.

P: Micro-Moisture Controls Inc., floated at $1, now selling at 1/2-c- .

Control of another Guterma company, Western Financial Corp., was sold by Guterma to Benjack Cage, the Texas swindler (TIME, Feb. 18, 1957). From $2.50 a share, the sales price in a few months dropped to 2 1/2-c-.

Last week SEC was also digging into Guterma's dealings with Lowell Birrell, another Wall Street high flyer, last reported hiding out in Brazil. Birrell sold control of United Dye & Chemical Corp. (now Chemoil Industries) to Guterma's group. The stock was run up to $38.25 a share. When Guterma got out, the price sagged to 1 1/8. SEC is also interested in Guterma's relationship with George A. Heaney, former president of the Huntington, N.Y. Security National Bank, which bought F. L. Jacobs notes.

At week's end Guterma said he could not understand all the excitement. Cried he: "Outrage! This is like getting a man for spitting on the sidewalk."

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