Chapter 7 A Year of Prosecutions

January 1934
Unemployment: 21.2%
Dow Jones Industrial Average: 100

Summary:

The Roosevelt administration looking for scapegoats for the causes of the Depression prosecuted people such as Andrew Mellon, Sam Insull whose failure affected million of shareholders, and the Schechter Brothers for violating NRA codes for distributing unfit poultry to customers. The Roosevelt administration knew how difficult it was going to be to prosecute them knowing that they were well respected in their hometowns and had much political influence in their cities, however,they still found evidence and proof to do so. Insull, already foreshadowing the outcome of the prosecution fled to Greece where he evaded the Greek authorities when the American government asked for Insull and embarrassed themselves when Insull slipped past Greek security and escaped on a Ship to Egypt. Eventually, the American Government was able to track down the ship with the aid of many countries and captured Insull for Prosecution. In the end, Insull was determined not guilty proving how difficult it was to send a rich and powerful man to jail versus sending a wage worker who had very little influence. Mellon on the other had, turned himself in and later left his job to become an emissary for another powerful political figure and dedicated the remainder of his life to collecting and admiring artwork. Meanwhile the Schechter brothers were prosecuted on the Sick Chicken Case for selling unfit chicken to customers and were found to be break 60 violations of the NRA. Meanwhile, Roosevelt was dedicating himself to executing the New Deal plan and having fireside chats to sell and assuage american citizens.

Key Terms:

Commonwealth and Southern
Ishmael and Insull
The Money Muddle
SEC
NRA
Exilona
Willkie

Question

In what ways did the prosecution of Mellon and Insull significant? How did it affect Americans during the Depression?

Pictures:

Andrew Mellon, March 16 2015, http://www.post-gazette.com/ae/book-reviews/2006/10/22/Mellon-An-American-Life-by-David-Cannadine/stories/200610220177






Insull, Samuel, March 16 2015, http://www.britannica.com/EBchecked/topic/289532/Samuel-Insull