THE TRIAL OF LORD KYLSANT.
ATTORNEY-GENERAL'S WHOLE-DAY SPEECH.
SECRET RESERVES AND DIVIDEND PAYMENT.
THE CROWN CASE OUTLINED.
what the particular is, all I get is that the said annust report con-
THE SCENE IN COURT. The trial of Lord Kylsant and cealed from the shareholders the Mr. H. J. Merland on charges arious position of the company. The ing out of the affairs of the Royal very serious allegation is that that Mail Steam Packet Company open-was with intent to deceive the share- ́ed on July 20 at the Old Bailey. holders. My submission is, in the Every section of the court was interest of all fairness, it is right. crowded. Counsel, taking part in
that the Crown should particularis, the case, who included seven K.Cs Lecause you do not do so by saying and ons woman barrister, occupied it is false in a material particular three benches and overflowed into without showing what the material the body of the court. In" front of
particular is." them innumerable clerka sätt a tabla which was laden with docu "ments, ledgers, and reference books, Behind them a corner of the court was reserved for, some 30 favoured members of the public; hore word to be found important men in the
Mr. Justice Wright: Are you ask- world of commerce and Snance,ing that the case should not be fashionably dressed women, friends taken here? of the iceland' mon, and distin- guished visitors from abroad.
The atmosphere was tense; but there was nothing grim, nothing forbidding, about the proceedings. Lord Kyliant and Mr. Morland, the latter wearing a brightly coloured tie and a light lounge suit, eat at case in the roomy dock.
An- Accountant,
Mr. Morland's features abowed a trace of emotion when a member of the jury said he thought it should. be known that he belonged to the
Institute of Chartered Accountants, of which Mr. Morland was a mem jer..
"Not Gality." Sir John suggested that these par ticulars would have to be given in a civil ense, adding: "This indic mont simply throws a thing at my head.
Sir John: Not'at all. I havə ki-: ready intimated to the Attorney General that I should make this ap. plication.
Mr. Justice Wright said that the defendants would plead, the case would be opened, and at the end of the opening the question of whe ther there should be further par- ticulars or not would then be dis uusaed.
15
Lord Kylsant then pleaded not guilty to the three charges against him and Mr: Morland pleaded not guilty to the two charges made against him.
Mr. Justice Wright asked the Patrick Hastings urged that it was Before the jury were sworn, Bir
juror if he wished to be excused or
most important that. the counts if any of the Counsel had any ·ol-
against the defendants should be jection to the juror serving.
Counsel intimanted that they had separated. He said that in the in- no such objection, and the jurorterests of fairness only the two
mid that "ho had no wish to
excused
The whole of the day was devoted to Sir William Jowitt's exposition of the case for the prosecution, Ho spoke for nearly six hours, with
charges relating to the accounts should be taken together and the third charge in regard to the pro- Kylsant only, should be tried by a pectus, which was against Lord
Reparate jury. The Attorney-Gen cráj would draw a very wide dis
Barcely a note before him, nover tinction between the facts relating raising his voice, and relying for
to the one and the facts relating
his effect on cool and unimpassion to the other, but he (Sir Partick) was quito utixfed that it would be
ed reasoning
As the afternoon wore on;
the
Attorney-General warmed up to his an extremely difficult task, and
subject. The neeused lennt forward
in the dock; the jury strained so
might be embarrassing to Morland.
Mr.
His Lordship: The Attorney-
as not to miss a word; the sup- General will have the benefit of porting Counsel suspended their whispered consultations to listen to the peroration.
"You think it pitiful that a great City firm is resorting to this sort of finance," he said, with re- ference to the deal in the Nelson shares.. How can that be justi fied? If this is done a hundred
your assistance so as to ranke it
easier.
S
Sir Patrick: There are so many of us, my Lord, that I am not w sure that it will be a benefit. It
may become more involved as we proceed.
Mr. Justice Wright said that times, it doesn't make it any better, there was no danger as far" às le
It is a grievous case, a grievous
could see at present of any pre case with regard to the honourable judice being sustained by either of career of the two men in this court, the two defendants if the matter
We give below the first part of was dealt with as a whole. the Attorney General's speech. The remainder will appear in the issue on Monday,
<
HONG KONG DAILY PRESS, SATURDAY, AUGUST 15,
1931
HONG KONG DALLY PRESS, MONDAY, FEBRUARY 16, 1931.
"FATHER'S - ADVICE TO DAUGHTER,
PHOTO OF NELVI CELLS SEEN THROUGÍA' MIELOSCOPS
HYDE PARK DEATH:
Trogir fathers by
elek who at Be
CAPONE'S SOUP SUSPENDED FOR
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NOT SA
„MANAGER SHOT.
THERE'S NO MAGIC IN IT!
THE
SIX MONTHS AGO THERE WERE FIVE
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must know would be a matter which the ordinary investor would take into his consideration.
The Attorney-General drew a dis- tinction between intention and
motive.
tion to deceive..
de the
of the
kik known in
en provoni generations,
YEAR
CLOSED
NESDAY,
USUAL
P.M.
SPT.
BED
INSERTIONS
$1
PREPAID.
„Anal Subscripi
CLASSIFIED ADVERTISEMENTS.
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OF UM SÍRPRISIamos India Colors kindoem for many per £100 Tarkable resemblance to the choru Bank, & makabin from k APRIL BD Reary Beadals, in there-194ply DAVID HARMON forestry of ose to whom he has pure fiallery in Milas' 16's, there.
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· Erman' Pagi, K.G.. of Ein Hausichusetts, in 1908, the anti-43 LAK, FRFOR BAKA DEILDING (106 | Daly Fran Pick gardens. – Glen, 137, a query having brought is from ♣ outer teacher of the Japer Tom collector. It had endentü, been in plʼanji lase Ramorín of Carilale, imenos aboss seven-fra poses, and Libuifmen of the Grad Boat, East ja believed by expern so have been “KOTANZANIA, Sighty den jeuri, who taken from the Church of Barte lekcha entzia bë 81297, stated in Maria dells. Orado in Milan, where be with " & cocomend my very doug Launardo was working at that age wife to the lowing can of our child upon has famous" "Lan" Suppets" | no, I know this my childera by Napoleon-so Prasse, whaden is
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ADVERTISEMENTS.
The following stamm af stsenaments are starjel ju thi pea gyms, bulowin SITUATIONS TAGMET.
BUUSEN AND APARTMEOUTH WANTEDAN
SECOND, DECRES FOR A
WIFE
*
MAN, SHE REMARRIED.
APTEN DIVORCE
A woman who`rmmered her hand
of the month
band after she but divorced him | Kontest
wis geanted 1 wemd, dřezen mas
| ngàypse kam pa the Divores Court,
XAPPROM=Than Soaplatena. TIẾN PHI DC. Lens Barie, bar pet Anond sem ng Brinkmoms Woddanad," Bouras [lived fairly happily, des in May, aruth. She maked for the dimolu, 1900 Mrs. Barley à inpicikon s fin af her marringens, the ground promed, with pngar) in hi hop of the showdon of her husband, bend's amoesntion with the woman Kalier – Herberg Burley, with 4 pamed Zucker. Beloquenjły Mrs. vissa samad Tucker åt na bota) | Barley flad bor provas petition for in Northawkerfandevenas, WC. Į divoros.
There was an Lord Marria
Steret miði, said h
¿draded
Dr. and Mrs Bazley were mai. Įtiegs should be a digres bed in 1997 be the register offer 21 | Alter 10 years of married life, Bayning. Bone Tavy bad barn (Xeu Barley divorad Boe knakand savionety married in 1915, but fircumn of big slasondemn, milk a Mrs Burley divorced her izumband Įtomas i was aci concerned, in because of kia miwoedwes with the present pestiion Mr. and Mrs. other woman. The drover is that Barley lived together again and he suit, was made absolute în 1995 became acquainted with the woPLA ¿Conilaved at foil of amet onƐmasa) 'abo waa son named-
1
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TAS FORM MAY BE USED.
Adrian-The ADVERTISEMENT MANAGER, "Hongkong Taily Prese
11, ite House Street, or PO. Box” L,
tion Company, Limited, who were | Kylsant was concerned, was that he shipowners
had a very clear personal and Then there were Robert Macan pecuniary interest in having a drews & Company Limited; David dividend of five per cent., paid. He MacIver & Company, Limited, and became untitled in 1927 to £97,000. perhaps the most important of In 1920, when they only paid a them the Pacific Steam Navigation dividend of four per cent, Lord Company with an authorised and Kylsant only got £3,000, issued capital of one and a
half
Pile of Papers, million pounds.
That does not in any way relate There were a large number cfto Mr. Morland," the Attorney- associated companies with very oom General emphasised. So far as I plicated interlocked shareholding know it did not matter in regard which he did not think came into to Mr Morland's remuneration the picture.
whether they paid "five" per cent. of fifty per cent, or no dividend at all
Director's Responsibility." The Crow Case Pas put by Sir
integrity and honesty of the two which are phrases so carefully con- William Jowite, who said that ond
men. That is a very relevant fac structed as to enable the defendants could well understand that the
tor for you (the jury) to take into to say the subtle refined diction.
director of a company would be re-
consideration when you are trying ary meaning of the words would COUNSEL'S. STATEMENT.
luctant, if things were going bad
whether there was or not an inten-cover what we did
Counsel in the case are
ly, to advertise to the world that
If you think such phrases would "Whether it was, the motive of For the Crown: The Attorney. his company was in difficulties or
** Just this other side of the pie provent the ordinary man under General Sir William Jowis, to fright shareholders or personal enrichment or the motive ture. Great positions carry withstanding what was being done, then that springs from false pride in be them great responsibilities. Casarthe very fact that the phrases were ¡K.C.), MG D. N. Pritt, K.Q., courage competitors, but whatever
and Mr, Eustace Fulton; for the difficulties might be a directoring reluctant to let the true posi wife should be above suspicion. It constructed in the way I have in Lord Kylmat: Sir John Simon, was not entitled to publish a dotation of a company be known, or the is an obvious thought that we must dicated might force you to the cón- K.C., Mr. J. E. Singleton, R.C.ment which he know to be false, motivo oven of protecting the shate-look to those who have achieved clusion that there was an intention and Mr. Wilfrid Lewis; for Mr. with intent to deceive.
holders by putting forward that great positions in our publia life deceive,"
Morland: Sir Patrick Hastings,
Lord Kylsant's Remuneration, In the same way an auditor of which is untrue, the desire to re to uphold untarnished its great re K.C., Mr. Stuart Bevan, K., & company not infrequently found in a distinguished personal posi- cords for fair and straight dealing. If you find in this case that Mr. C. J. Conway, K.C., and himself in a position somewhat tion, or a desire to avoid having Mr. F. J. Tucker.
to take a course which might lead these accounts were false, I think to unpleasantness and bickering you are bound to come to the con- whatever the motive it does not clusion that they were known to be matter so long as there is an inten-falso. If you come to the conciu
difficult. He was not merely As soon as Mr. Justice Wright specialist in some mystic or some took his sont, Sir John Simon asked mysterious science called account. him to consider whether or not, in anoy, and he was certainly not per fairness to the defence, particular forming a-kind of symbolic net, wi ity should not be shown in making net of mere mumbo-jumbo, when le the allegation which the indictment, gave his certificate which appeared which consisted of three counts, con on the company's accounts. tained.
In one case not long ago he was The first count, as an example, described as the watchdog to see that
tion to deceive.
"This case, like all cases in this Court, must give an anxiety anxiety, not the Ita but the more because the two men being tried are both men who bear honourable and
sion that the accounts were known to be falso, you must, in my sub- mission, come to the conclusion that the persons who put forward that which they know to he false intend to dowdive somebody.
to
....
Sir William reviewed at length the affairs of the RM.S.P., whose Lord Kylsant was chairman not constitution, he said, went back into only of the Royal Mail Steam almost distant history. He dealt Packet, but also chairman of each with a mass of complicated figures of the 100 per cent, subsidiaries.
without glancing at his notes. He was paid a quite modest sum He pointed out that a little over by way of fees for being their chair, £700,000 would be required for the man, but the relevance of that fact service of the debenture, preference was that it differentiated him from capital and ordinary stock, on a Mr. Morland, five per cent, assumption, and went Lord Kylsant's remuneratios, to on to discuss the six 100 per cent, far as the Itoyal Mail Stent Packet Who, could that somebody bs but subsidiaries "own
by the com
Company was concerned was settled
Sir r Patrick Hastings; You.ink}" take it, not the slightest.
The Attorney-General said that ho noticed that in 1920 the item for auditors foes was £2,000, but it was quite likely that a lot of that would relate to auditors employed by the company elsewhere.
t
Siz Patrick Hastings: Is it not better to have it made quite clear
Sir John said, roferred to the an, the shareholders' interests were duly distinguished records both in the shareholders? You will lo, Lpany-the Royal Mail Meat Trani 1007, He was to have half per at once! He was paid four hun.
nual report of the court of directors safeguarded and observed, audio and private life."
Accused Men's Integrity.
of the Royal Mail Steam Packet when an auditor signed an account Company for 1930, and, the allegatlint the balance-sheet was properly Sir William skotched the careers tion was that this annual report of drawn up so as to exhibit the true of the accused mon and added: "It many pages was false in a material and correct view of the company's is righ that I should say, and any particular.' Our affairs as shown in its books, ho emphatically, that prior to the One naturally wishes,” said dir was sta ng something upon which allegations we are now investigat, John *** to know » something about the ordinary investor was entitleding, there has been no cuspicion at but when, one loko, to að tó rôly, and something which he 'all," no poraible doubt, passed on the
think, the more irresistibly driven ports, Lämited (with issued capital cent, commission on the gross tak. Į dred guineas whether the dividend to that conclusion-if you come to of one million), the Nelson Steam ings of the company, provided that was large or small. the conclusion--that carefully pro- | Navigation Company, Limited, and the company paid in any year a pared phrasen were made use of H&W Nelson, Limited, E. & W. | Uividend of 3 per cent, on its ordi- which would alloy any suspicich of: Nelson, Limited, was really carry nary shares. If it did not pay live uneasiness in the mind of the ordi- ing on a commission and brokerage per cent, on the ordinary shares mary prudent investor, which would
se mathon Lord Kylsant gut 23 död. The conceal the true position, and yet agers to the Nelson Steam Nayika relevance, therefore, so far as lord
The Attorney-General then pro- duced documents relating to the ne counts for 1920. It was a volumin. ous collection, and, Sir Willism ex- plained that i
"Countinued on Page 12.)
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