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SIR PATRICK HASTINGS' CASE-BOOK.......... CHAPTER 13
DIFFICULT AND RISKY DIAMOND
FIELDS CASE
HE case of the United carat from £4 10s. to £3 and and in May 1928,
Diamond Fields of less. The result was that U.D.F.'s were started.
from 2,000 output dropped British Guiana carais a month to less than 300. against the Diamond
T
sum.
W18 one
Was an enormous
that the Mr Norman Birkett, K. C. whe- two actions' helmer had certifed
profit was 54 percent and that appeared for Mr Oppenheimer, the price cut of 10 percent was also had bla 4,000 letters and even more documents than Mr Bevan,
It
Short point
The course I decided to adopt
One was for conspiracy and justified. fraw against the Syndfeate and
was a tale to a Mr van But there was worse to come. Mr Oppenheimer, and the other
the Antwerpen, and it was apparent of Syndicate
In May, 1927, almost exactly 18 for an account against the most difficult and
months after U.D.F. had begun Syndicate. The damages claimed from the entry that tie profit on that sale was not 54 percent as risky I ever handled. The business, Mr Oppenheimer told were £30,000,
Mr Oppenheimer had certified, príze
the Company he would have to
From the moment the action but 10 percent. again reduce the price per carat.
started, the Syndicate appeared
To render its There was no explanation of incurred, the risk that the court might suspect that there was He reminded U.D.F. that the determined The dificulty lay in produc-
diamonds de- ultimate trial, if not impossible, this discrepancy. ing. from a mass of more than value of new
Immediately I was told of this something in the documents I
to ignore because 4,000 documents, onc,fact which pended on unsold stock, and that at least extremely doubtful would win my
From the day the writ was discovery. I thought I had found intended case; the risk the value depended on the price was ignoring all the other dolall obtained "at the last preceding issued it was obvious that the a way of cutting through the was anxious to conceal it. But
sale." that one
proccedings would develop Into Immense Intricacies of the action. the risk had to be taken. and concentrating on
Either there was a proper I explained the story in a few taet, when found.
quite unmanageable proportions.
explanation of this incident and words, concentrating entirely on of Me Oppenheimer's certificate, Mr Oppenheimer's method of or there was not.
then told the
£300,000, The stake was The Diamond Syndicate was formed to restrict the output and sale of diamonds to main tain their price and it was so successful that by the beginning of the century practically all the diamonds in the world were in
their hands or under their con-
trol.
4,000 letters
hand.
and one tion
was forthcoming,
assortment, and
1
to
This price, he said, had been only 5 percent above cost, and thus he must reduce the price paid by the Syndicate for future
If there was, I would prob- jury that in my view there was The Syndicate insisted on pro- damonds by 10 percent.
The Company had no means ducing more than 4,000 letters; ably completely exonerate Mr only one short point in the case
those
figures or bundles of documents increased Oppenhetiner; but if no explana- which i would not take them of checking
the they were no to an incredible size,
more than a few minutes calculations;
the Syndicate's allowed to sce
understand and decide. establish in my mind that if we
I determined, therefore, 10 books, and they were bound by incident alone was sufficient to certificate was a fraud.
careful the action a certificate, which Mr Oppen- were not
Mr Oppenheimer's certificate throw over all the 4,000 letters entirely out of helmer gave them, establishing would Fro
and the bundle of documents was either honest or not, I said. that the profit on the last saté
and tell the jury from the outgot If it was not, they would have had been only 5 percent.
It was necessary to take the that we were prepared to stand no difficulty in coming to the
or fall on one issue. In vain the Company pleaded evidence of the original conces-
conclusion that the whole course- with My Oppenheimer that the slonnaire, a Mr Perez, on com-
He mission, reduction would ruin them,
although was adamant, and by Septem- evidence he could give was slight, to attract the Diamond Syndi ber, 1927, the average price had he was cross-examined for dave been robbed and nothing else thereby ruin the Company,
per fallen to £2 159.
cara!. cate's attention, and eventually U.D.F's output had dropped by a Mr Oilo Oppenheimer, their 75 percent, and the Company representative, arranged to buy 12,000 carats at an average price was ruined, of £4 10s, a carata fair price.
He
their Only one danger to control existed; the discovery of new diamonds from an un- known source.
In 1925 the precious stones
from British began to appear Gulana in sufficient quantities
Next came the formation of the United Diamond Fields of British Gulana, + company which contracted to sell its entire production of diamonds to the Diamond Syndicate at the same price as the first 12,000 carats.
Assortments
refused
But, fortunately for U.D.F. a gentleman of great ability, Mr Victor Coen, sat on its Board.
Mr Coon merchant
tobacco
and
the
If Mr Oppenheimer had given of conduct had been to prevent us a false certificate, we had the production of diamonds and
mattered. If his certificate was about honest and he was an honest He was questioned matters which, to my mind, had man, our case must faß. nothing whatever to do with the.. real issues involved.
Entire hopes
worried, take it.
were
I told the jury they would have to listen to hours, and possibly days, of cross-examina- - tion which, in my view, would be absolutely irrelevant.
It began to look as though Basing our entire hopes of
But at some time or another the intricacies of the case would success on this one small point
risk, and my the defendants would have to make it practically impossible was a terrible
Mr considerably explain
Oppenheimer's: but I determined to certificate. If they succeeded, for any jury to appreciate what advisers they would have to try.
they would win; they failed, Unless we could discover some
they would lose. The action came on for trial and knew nothing. one incident, however small, on
Mr he was which to concentrate our atten- on March 4, 1930, before about diamonds, but
merits of our case Justice McCardle and a special satisfied that his Company had tion, the bern unfairly treated and he would be swamped in the mass jury. Seldom can a special jury court have been littered with so determined to bring the matter of detail,
The case dragged on, day come a stroke of many documents and papers.
after day. Mr Victor Coen was before the courts.
for four days During the preparation Mr Stewart Bevan, KC, who cross-examined
for the Syndicate,
And then
Dragged on
Now this price was only fair if the method of asparting the
Mr Oppenheimer struggled luck. TC- of the diamonds quality
Mr Coen to for the trial it became necessary appeared hard to persuade
to show us was provided with his 4,000 by Mr Bevan-but the defen- mained the same--which meant consent to some form of arbitra- for the Syndicate that the whole future of United tion, but Mr Coen refused. He some entries in their books, and letters and his bundles of docu- dants Diamond Fields depended on obtained a considerable amount amorig these entries we saw the ments, which increased day by certificate. the fairness with which future of support from shareholders "last sale" on which Mr Oppen- day as the case proceeded; and stones were assorted.
The Syndicate insisted that the assortments should be under the complete supervision and unrestricted control of Mr Op penheimer which, of course, placed the Company's completely in his hands.
future
Two other provisions of the mentioned. contract must be First, the Syndicate insisted that Mr Oppenheimer, though their should be appointed Sorvant,
adviser
United 10 technical Diamond Fields which meant that Mr Oppenheimer was the only person in a position to re-
SUGAR RAY ROBINSON,
plus WIFE and
STARTLES PARIS
PARIS. By R. M. MacCOLL Sugar Ray was to fight French
gulate the price to be paid by CUGAR RAY ROBINSON, Swords welterweight
the Syndicate for the stones.
'GANG,
>
never explained
the-
Then Mr Birkett began and, four days later, at long last, with a jury waiting impatiently to hear the explanation,
certi- Birkett introduced the fleate.
יח
Mr.
Poor Mr Birkett! He must have found the explanation as difficult to give as we dificult to understand.
found
vital
Apparently, after the sale to Mr Antwerpen, the buyer had been dissatisfied with his bargain, and, as the Syndicate would not help him, Mr Oppen- heimer had come
Mr "Am I going to help Sugar Antwerpen's rescue and bought spend the £8,000? Certainly back the diamonds himself.
He not
to
Wit is widely duty. His mo What bearing this was sup-
middleweight Jean Stock..
and he cannot spend it all him-posed to have on the truth or The second provision-ulti-champion and one of the
It turned out that Benaim was self. So I am going to buy lots falsity of the certificate I was unable to understand, and Mr. mately the most vital-was a great Negro fighters of
Justice McCardle, whose mind stipulation that the price pay-modern times, has descend- doing a little mental arithmetic. of dresses. How wonderful."
Back in the conference room had been centred on this point able by the Syndicate could be ed on Claridges Hotel in
"To bring this party of nine from the States cost me about walters trundled in whisky and for days, was as puzzled as w reduced at the end of any six- month
an Paris.
£1,400," he explained. "Then I other refreshments in lavish were. He found it necessary t period provided
someone asked if Interpose, and asked: certificate was
am responsible for their entire quanlity, auditor's
And he has produced an hotel bill, which I calculated Sugar Ray worried about when presented to say that the value of the diamonds in stock and air of wildly opulent fan- comes out at about £10 a head his boxing days are over.
unsold had fallen.
}
like tasy. that seems
roaring
The value of the unsold stock glimpse of the
was to be priced at the figure twenties. realised by the Syndicate at the last sale preceding the issue of the certificate.
roared
Do you meant that Mr Oppen-. helmer bought them back for himself, or for the Syndicate, or what?
Manager Gainsford & per day.
"I have guaranteed Robinson with happy laughter. £6,000 for the fight-a large
"No worries there, boys," he
Mr Birkett: He bought them: sum for France."
said, "The champ owns several back for himself.
Even if it city blocks of real estate In
o lingerie was done wrongfully (that is to Harlem, a laundry,
say, if his action cannot really And why does Sugar Ray shop, and two barbers' shops." be justified) and mistakenly, it travel with eight people?
"And a brewery and a res-really cannot be a fraud. "Even before ah was champ, taurant," added Sugar Ray, "50
con- He called a Press ference. And he sat in a Unfortunately for the pros- yellow silk dressing-gown perity of United Diamond Fields in a corner of his suite,
an unexpected and elsewhere in yawning hugely but an ah always travelled with a big you see how it is," Gainsford Not entered
the world revealed enormous
He is a tawny, handsome
gang," he drawled. "Ah like it said." that way. And see, ah'm in a very high income tax bracket,
Richard Simon,
quantities of diamonds - so swering questions amiably. many that they threatened thr very existence of the Diamond Syndicate.
Obviously, then, unless the Diamond Syndicate could restrict the output of diamonds
young man who bears resemblance
Joe Louis.
from
to
窳
the hair-1
Mr Justice McCardic: If it
a so ah've what, the heck, so dresser, plump and personable,
long as Uncle Sam is getting set next claimed my attention. "Ah was sceret, of course, I say no five more than that it might well be Robinson young to grab what ah earns, ali night been with Mr
the the grossest, fraud. Where are as well spend it on mah friends." years." he said.. "He has
most silkiest scalp. Every morn- the accounts by which he ad-
He
By him zat his munager, Later I found myself wedged ing he takes a plunge in the justed this transaction? Lichtenberg, where the new George Gainsford, a mountainous against June Clark. He wore a pool and then ah take over." Mr Bikett: With all due de-
F1 Clark Gable moustache, a blue find was made, and elsewhere. Negro ex-middle-weight, in the world market might be startling plaid lounge suit.
bow tie, and an extraordinarily flooded and
Syndicate bent and whispered in Sugar's cut pepper and salt sult. the
car from time to time as though trousers finished up under his ruined.
he were his second in the ring. armpits.
More diamonds
And at this moment United Diamond Fields were going into operation BO that even more diamonds would como into the markot.
The
"Trouble is we cannot get the champ to eat," Gainsford was shouting above the uproar,
"Ah just like candy," added Sugar Ray. "Any time at all ah'll eat candy."
Would he fight Jack Gardner of Britain? "Sure sh would, if the money's right," he said."
ference, no such accounting would be necessary.
Mir Justice
Mr McCardie: Birkelt, are you going to suggest that the books showing a sale to Mr van Antwerpen do not re- present the truth of the matter, at the moment when the certi- ficate was given?
Mr Birkett: Yes, my Lord. Mr Justice McCardlo: Is the "Say, we are only interested
in any other in money," said Gainsford. "With truth contained us it is strictly a question of documents or document what-j finance, not glory or anything soover?
"I used to play the trombone Drifting in and out of the in Louis Armstrong's band." Pee Wee piped June, "Would you care to crowded room were
trainer;
June meet Mrs Robinson? Follow me, Beale, Sugar's Clark, his secretary-In spite of please."
Ho ushered me into another his name he is a man who was worried because some of the 47 room where Mrs Robinson, trunks had got lost and Mr. strikingly beautiful woman with complexion However, if the price paid by Robinson had mislaid her pass a cream-coloured
who is and wearing black lace negit Wiles, the Syndicate to United Diamond pori; Harry
Mrs gee, lay in bed. secretary: Fields could be reduced, U.D.F. Gainsford's
"How do you do?" she said. would be unable to operate at Gainsford; Shelton Oliver, who
with
Mr Birkett It is, soy Lord, a prost, and the flow of gems is Sugar Ray's golf professional; shaking hands. "I am just taking silly like that
Sugar then stood is a little rest. Last time I was in and Richard Simon, who
Mr Justice McCardle: But not. would stop.
Paris was with the Cotton Club lazy grace and gave the signal Sugar's personal hairdresser. And
in 60,
pro-reflect on what you are saying, “ ensuing Looking thoughtful in another show back in 1937. I was just a for his party to organise itself entered in your books.
Not entered in Mr months,
Oppenheimer corner was the Jack Solomons little girl then. We did a mili- for the daily ritual-the
your books! la that, what you pool for a dip and a massngo. changed his method of assort of France, Gilbert Benaim, the tary number. I watch all my cession to the hotel, swimming Mr Birkett.
meant ment and reduced the price per promoter of the match In which husband's Dghts.
Dessert song
the
POP
IN THE OFFICE THEY
CALL ME-THE-
OLD DESERT
RAST!
SIT DOWN COLONEL" THAT'S NOTHING "TO
WHAT THEY CALL. BOURINETHE
REGIMENT..
קט
i
Just
If you say that it means the these accounts which you a now putting before me an i accounta of the defende Syndicate are not.. worth paper they are written on.
Reflect, Mr Birkott. At t slago the ac!len may, aerume grave expectKNES
Mr Birkoti: AV these matters. have been the subject of mort the anxious consideration by advleer of My Oppenheimer, my Lord.
Mr Justion McCardle: Lei mie tell you atenco Mr Birkett, 1mt cuntaine ed ingenious mug- Wition will be no good in the
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