WILLIAM CHARLES HART SAXEBY, Breaking Peace > libel, 31st May 1910.

Reference Number: t19100531-73
Offence: Breaking Peace > libel
Verdict: Not Guilty > unknown

SAXEBY, William Charles Hart (43, clerk) . Unlawfully printing and publishing, and causing and procuring to be printed and published, a certain defamatory libel in the form of a printed pamphlet of and concerning Demetrius John Delyannis. Prisoner pleaded not guilty and put in a special plea of justification.

Mr. Travers Humphreys, Mr. H. W. Roome, and Mr. Mercer prosecuted; Mr. Valetta and Mr. Wing defended.

The pamphlet on which the prosecution was founded was entitled "The Story of Demetrius John Delyannis, alias D. J. de Lyann, alias 'The Cosmopolitan Financier.' The Vulture of the West"; and denounced prosecutor as a rogue and swindler, a bucket-shop keeper, etc.

The case for the prosecution consisted in formal evidence of publication.

(Evidence of Justification.)

WILLIAM CHARLES SAXEBY (prisoner, on oath). I have been practising for 22 years as a journalist here and in South Africa. On September 6 I entered into Delyannis' employ as sub-editor of the "Cosmopolitan Financier" (of which he was editor), owned by Cosmopolitan Publications, Limited. I received three guineas a week. The editorial business, so far as he was concerned, was carried on at Cable House, 54, New Broad Street, at which address the business with which he was connected of the Atlas Banking Corporation, Limited, and the Reorganisation and Control Syndicate, Limited, were carried on in the same suite of offices. The name "Cosmopolitan Publications, Limited," did not appear, the editorial work being conducted in the board room of the Atlas Banking Corporation. I had nothing to do with those two businesses except to go into the offices when I wanted to see Delyannis. The Cosmopolitan Investment Bureau had a room at Prince's Chambers which communicated with the office of Cosmopolitan Publications Limited but it was unoccupied; messages coming there used to be telephoned to Delyannis at New Broad Street. Its business, with which I had nothing to do, was principally to sell

options. People used to come in and ask either for their shares or the return of their money, and the publishing clerk used to say that the editor was not in at the moment, but that he would deliver the message. Sometimes the people would say, "We have been here three or four times and this is the same answer. Let us see this man who has had our money." The sheriff's officer came there fairly regularly; he used to sit at the end of my table; between the sheriff's officers and the officers serving writs and petitions to wind up the company I should say one came every week. A week before I joined Delyannis was attempting at Cable House to write an article on the option system, and he asked me to finish it for him, which I did. It appeared in the September 4 issue (Exhibit 7) under the heading "Straight Talks to my Readers." I wrote an article on a similar subject for the next issue. Delyannis added to the proof a recommendation to buy options on, Barranca Mines and Ashanti and Gold Coast United Shares. In December a letter was handed to me from a subscriber to the editor containing an inquiry; I answered all inquiries. It is now filed away with the Cosmopolitan papers. (Mr. Valetta called for the letter. Mr. Travers Humphreys objected to its admission, as no notice to produce it had been given. Objection upheld.) In consequence of this letter I had a conversation "with the secretary of the Cosmopolitan Publications Company, Riches, and we looked through the books. Ashanti Gold Coast shares stood then at 31s. 6d.—32s. 6d. Shortly after this I heard Delyannis say to Riches, "I have seen Mr. Grimwade, and he will not let me have the shares." The system of buying options was that clients would send the money with which to buy the options, and if the shares appreciated in value the options would be claimed, and then Delyannis, who had not bought the options, would try and get them; if he failed to get them the client would be asked to renew for another three months. On October 9 I wrote an article for the "Cosmopolitan Financier," recommending the public to buy Henriquez Estates, and submitted it to Delyannis, who said, "That's no good; it's one of Newberry's companies; he let me down over Nile Valleys, and now you must say these shares are of no value," and be altered the phraseology of the article so as to make it appear that the public ought to sell. In the issue of October 23, under the page headed, "Letters from Cosmopolitan Readers," appears an inquiry as to Arizona Consolidated Company's shares (one of the companies controlled by Newberry), signed by a Mr. "White Hill," and in different type there is the reply that so far as the Editor knew the shares were of no value, but he would make inquiries and communicate with him again. "White Hill" was Pappa, a great friend of Delyannis, and the inquiry and reply were dictated by him to me in Delyannis's room. In the same issue there appears an inquiry from "Enquirer" as to Nile Valley, Randfontein Extensions, and Mayblossom shares, and the reply was, "The gentleman who directs the policy of all the companies mentioned is a Mr. Frank Newberry. Although I do not know much about him, I do not think he is likely to be associated with so discreditable & proceeding

as an attempt to rig the market. I will, however, make inquiries during the course of next week, and if I find anything to warrant your suspicions I will refer to the subject in my 'Straight Talks' next week. You may depend on my exposing any underhand work if I find any taking place.—Editor." The inquiry and the reply were the joint production of Delyannis and Pappa, and it was dictated to me on this same occasion within a few days of that issue. I was told not to refer to Newberry's companies or to Newberry again until I received instructions. On November 20 I wrote an article on Delyannis's instructions, saying that the position of the Henriquez Estates Company was much better than the reports would lead one to suppose. (Exhibit 11.) Also on his instructions I wrote a long article explaining the winding-up of Atlas Banking Corporation, stating that it had no connection with Cosmopolitan Publications, Limtied, or the "Cosmopolitan Financier," which appeared in the issue of October 16 (Exhibit 12). In the issue of October 23 (Exhibit 13), on his instructions, I wrote an article headed "Russian Estates and Mines, Limited: Some Questions for Mr. Walter Crotch to Answer"; it was an article attacking Gotch and Farrow's Bank, and saying they were rigging the market. On October 19 Delyannis sent for me to his office, and introduced me to a Dr. Pooptis, a Greek, and a Mr. Barutch, a Russian. On Friday, October 22, I was in the office of the Reorganisation and Control Syndicate, at 54, New Broad Street, when. Delyannis came from the inner room, spoke to Riches, and went back again. Dr. Pooptis then came to the office and gave Riches some loose money. After a little whispered conversation Riches went in to Delyannis with the money, and came back with the gold still in his hand and spoke to Dr. Pooptis, who went away. I did not see him take the gold with him. He then came back again, and after another whispered conversation and more jingling of money Riches went in again to Delyannis. On his return Dr. Pooptis went away. Delyannis never left the inner room when I was there. Towards the end of October he told me to write an article about the Anglo-American Cold Storage Company, which Count Ward was promoting, without committing ourselves either way. The following week, on his instructions, I tried to get an advertisement from Count Ward for the prospectus of the company, but failed. I told Delyannis this, and the next time Count Ward rang up, Delyannis told me to tell him that he was up West, adding, "I bet he is in a fine funk." He rang up again, and Delyannis made an appointment with him. He came round and saw Delyannis in his own room. After he had gone Delyannis said to Riches and myself, "I've got 100 shares." We subsequently got a blank transfer for 40 Preference and 60 Ordinary shares, and I transferred them from Count Ward's name to his name. I subsequently transferred 30 of them to B. Pede. He said, "We have got the advertisement; now write it up, and in the issue of October 30 (Exhibit 14) I wrote a very favourable article about the company. In the advertisement, which takes a whole sheet, Count Ward is spoken of as the vendor. In the issue of November 16 (Exhibit 15), on Delyannis's instructions, I wrote two favourable notices with reference to Barrancas and Hudson's

Consols. In the November 20 issue (Exhibit 16) I was told to insert a column of the Barranca directors' yearly report to be presented at the next meeting, and on November 27 I inserted a full page report of the actual meeting of that company. Delyannis said I was to put them in as he would succeed in getting them paid for. He subsequently told me to make out an invoice charging £10 for the one column of directors' report and £20 for the page report of the meeting deducting a special discount of £10, and to send it round to Hudson's Consolidated, by which the Barranca Company was controlled, which I did. They refused to pay until they saw the written order. They have never paid for it. There was a circular being sent out by the Huinac Company, over which Hudson's Consolidated had an option, asking for money, and Delyannis said, "If Hudson's are not going to do anything for us I go for them"; and we brought out an article in the issue of December 18 (Exhibit 17) entitled "Huinac Directors' Mendacity," attacking them.

(Friday, June 10.)

W. C. H. SAXEBY, recalled. In the issue of January 15 (Exhibit 18) under "Straight Talks to my Headers," entitled "Huinac Copper," is an article which I did not write condemning their directors and those of Hudson's Consolidated for the circular letter that was issued. In the January 22 issue (Exhibit 19), in answer to "Gunner, Portsmouth," it is stated that there was no justification for Ashanti Gold Coast Shares (one of the Hudson's Consolidated Companies) standing at their then price. There was no such letter of inquiry, and Pappa supplied the answer. In the issues of February 20 and February 26 (Exhibits 21 and 22) there are further attacks on the Hudson's Consolidated Companies. On November 11 I attended a statutory meeting of the Reorganisation and Control Syndicate, at 54, New Broad Street, and made a report which appeared in the issue of November 13 (Exhibit 22) as altered by Delyannis. Whereas in the discussion that followed I put in the names of the real speakers he altered them; "Mr. Adams" was Pappa, "Mr. Kelly" was Mr. Neilly, his solicitor, "Dr. Lewis," was Dr. Lehwess (it was his debentures for which he had no use that the company was formed to acquire), and "Mr. Pepps" was Pappa under another name. Some of the speeches he cut up and put into several persons' mouths. It" is not a, fair report of the proceedings at all; it was written up to give the view of Delyannis instead of the view that was expressed at the meeting; the continued loss of the running of the 'busses of the Electrobus Company, Limited (one of the companies this company had acquired) was not allowed to be shown. I attended the meeting of the Cosmopolitan Publications, Limited, on December 31, and drew up a report which, as altered by Delyannis, appeared in the issue of January 1 (Exhibit 23). Independently of Delyannis's friends, Mrs. Greening was the only shareholder present. There were other-people present. I can tell you all their names. As to the concluding part of that report there was no such persons as "Mr. Laxon" or "Mr.

Hart" present, and "Mr. Adams" was Pappa's company name; no such questions were ever asked as to the Cosmopolitan Investment Bureau, and no such answers were given by the chairman. Not one of the things there mentioned took place except the re-appointment of directors. Delyannis told me to insert this notice in different issues, "Subscribers who have been dealing with members of the London Stock Exchange on our recommendation will benefit by communicating with us,' and people would write stating what brokers they had dealt with, and we applied to those brokers for our half commission. The Cosmopolitan Publications, Limited, and Delyannis banked with the Mines and Banking Corporation, and the Reorganisation and Control Syndicate with the British Linen Bank. I left their employ on January 22. I wrote a letter to him on January 4. (Mr. Wing called For the letter, but it was not produced). The first trouble arose in the middle of December, when King, who had been the manager of the Atlas Bank, said I was to insert a favourable notice concerning South-East Africa properties, which I knew from my own knowledge should not be advised, and I said to Delyannis that I thought it was not fair, but he said it was no business of mine. On the evening of December 31 Delyannis instructed me to offer options on cotton, having previously written up cotton, and I said then that it was not fair as cotton was at breaking point. Cotton broke the next week. He gave me a pamphlet called the "Mining Investor" (Exhibit 24), and told me that we could use it. I put a few words of introduction to it, and inserted it. A week after, while looking through the letter-book, I saw a letter written by him to a Mr. Wheatley that "that man Saxeby inserted it into the paper as his own copy." I told him that I though't it was wretchedly unfair to me, and that he ought to take the responsibility of it, but he tried to throw it on my shoulders. From then there were always disagreements, and on January 14 I had a registered letter terminating my engagement. In consequence of that letter I brought an action against Cosmopolitan Publications, Limited, in the Mayor's Court, but that company has gone into liquidation.

Cross-examined. Unfortunately I cannot find the letter. I have been a digger in the goldfields and a prospector. I have held a subcontract for part of a railway in Manicaland in Portuguese East Africa. Whilst I was a sub-editor of a paper in Kimberley I also owned an hotel which my wife managed. I was first on the "Johannesburg Star" in 1889 for 12 months as a reporter, at £18 a month, and then, to better myself, I went to Natal as first reporter on the "Natal Mercury," under Sir John Robinson. I lost all my South African references in the war, but I can produce some excellent ones in England. I was in Africa from August, 1888, to May, 1902. In 1892 I was sub-editor of the "Kimberley Independent," under Reginald Stathan. When I arrived home I was on a paper called "South Africa" for 14 months. I fought for 29 months at the front; I came down from Rhodesia with Colonel Plummer. I had been away for 14 years, and I wanted to come home; I had had enough fighting. I was charged in 1892 with stealing a bicycle which had

been given to me by a dealer in consideration of my having induced the champion of South Africa to ride one of the machines he was exploiting; the Public Prosecutor sent back the papers, and I was discharged. When I was on "South Africa" I took too much to drink once, and I was discharged, but I had a good reference as a journalist. I have never been unemployed whilst in England, but for three months I was not attached to any paper. I was not employed by Delyannis before September. On the previous July I wrote at the request of Delyannis the money article for that week as a specimen of what I could do. I deny I was taken on from then at three guineas a week. I wrote another article the following week, and then Delyannis promised me a definite letter of engagement at five guineas a week as sub-editor. I did a certain amount of work, but as I could not get my letter I did no more. I was eventually paid for the work I had done. In August I suggested to Delyannis I should write an article called "Two Years' Successes: A Review of the Movements of various Securities which we have Recommended for Speculation," and he gave me the order to write it. I did not absent myself for 10 days and go on a drinking bout, and I did not go back to Delyannis and say I was sorry, and that I had almost had delirium tremens. Not being able to get the money for the articles I had written I had to sell my home up where I had lived three and a half years. I attended the office 20 times to try and get my five guineas. I eventually got it in small amounts. After having written the article "Two Years' Successes." I did not ask Riches to intercede with Delyannis to take me back again. In September Delyannis suggested I should join the staff permanently, and I said I would if he would give me a proper engagement letter. He said he would like me to take the pledge. He saw me coming out of a bar in London Wall, and I do not think he likes anyone going into a bar as he does not drink himself. It was a matter of indifference to me. I see I say in my letter to him of August 24 (Exhibit 26) that I would again take up the editorial work, but that does not mean I had been permanently employed before. I see I also say that I should be prepared to comply with "those conditions." I cannot tell what they were; one may have been to abstain from drinking. It goes on, "I would suggest that the first month be a sort of trial during which I hope to regain your confidence"; they did not know what work I could., do inside; I had only been working outside. I do not know how I had forfeited their confidence except that I went away when I found I could not get my letter; it was not drink. He did not refuse to take me until I signed the pledge. I did sign it in September, and kept it till December 26. I wrote the libel myself. He used to boast about his having put himself outside the pale. I heard it from people he told it to; he did not tell me himself. Hawton and King told me about it. I should say he is 45 years old, and 22 years ago would be 1887. I did not know he was at school then; and that he was vice-consul in 1891, and that he fought in the Greek Army in the Greco-Turkish war in 1897. I only know what people repeated about him. If I said it was 23 years that he

fled his country and it was only 13 years ago I do not see that that makes a great deal of difference. I was not in a position to refuse to write articles; I do not say that I would have written anything whatever its nature may have been. Wood, one of the clerks, would be with me at Prince's Chambers some part of the time. Riches, who was at New Broad Street, would come about twice a week to take what money there was from the sale of the paper. I cannot give you the name of anyone who came in and asked for shares or the money back. It would surprise me very much if Wood says he did not see these people call. The shares they asked for would be those obtained through the Cosmopolitan Investment Bureau, which was one and the same thing as the "Cosmopolitan Financier." Delyannis was the investment manager—he was everything, none could move without him. Hawton was the manager of the Manchester branch. I have seen letters that Delyannis has written to people who had complained of their not having received their shares, showing that he took an active part in the business. All the London business was not left to King, who was the manager of the Atlas Bank. As soon as the bank was wound up in October he took an office in Queen Victoria Street. Hawton used to send the money from clients received in Manchester to the Investment Bureau's bankers, the Atlas Bank, and when it could not meet its liabilities to the Bureau the Bureau failed. Hawton came to London to see if there was any way he could get the shares for which he had received the money. The issue of September 26, 1908, says that the "Cosmopolitan Financier" is going to open an Investment Bureau in Manchester and other places with a view to providing information and advice on investment securities. People would send money for shares to be bought for them and they never got the shares. I know that Delyannis sent out a circular to all the readers asking them to buy shares in a new concern that was going to buy the goodwill of the Cosmopolitan Investment Bureau, which had now broken up. He was not one of the directors. Hawton, who was the manager of the new concern, refused to let Delyannis manage, and they quarrelled; the quarrel was not because Hawton would not pay the creditors of the old bureau out of the purchase money. Delyannis thereupon circularised the shareholders running down the men who were directors of the new company. The "Cosmopolitan Financier" always advised the option system; no notice appeared while I was there that they neither encouraged nor discouraged options. I used to give £50 and £25 selections, and Delyannis, saying that we might as well get the little fish as well as the big ones, told me to give £5 and £10 selections as well. It was not carried on by the Cosmo-politan Investment Bureau, Limited. I see the prospectus of that company (Exhibit 27) is dated September 16, but it was a long while after that was issued before they got the share money. There was a second prospectus after that. Hawton, Allen, and Colonel Thomas were the directors of this new company. Hawton or Allen, as directors, used to supply me with the lists of the lots for sale every Thursday. Delyannis used to sit in the same board room. I saw this circular letter of December 1 (Exhibit 29) sent

cut by Delyannis. What it says is nothing to do with me. The "Mr. Hart" mentioned in the report of the meeting of December 31 is probably my middle name; there was no such person present. The speech from the chairman was written in the morning at Delyannis's office. That was typewritten, and I was given two copies, one of which I gave to the printer before the meeting to set up, one to the clerk to check the speech, and Delyannis read from his typed copy. When he found there were no shareholders to listen to it except Mrs. Greening he considerably reduced it. I have the copy from which he spoke showing his markings out. There was no discussion whatever after the meeting, but they gathered together after Mrs. Greening had gone, and Delyannis said, "We must have some sort of discussion. We must have a knock at Hawton," who with Colonel Thomas had been refused admission to the meeting. Although the questions and answers were not dictated to me, between Delyannis, Pappa, O'Neill, and Lehwess the general lines on which the discussion was to be reported were given to me and I was told to write it up. I composed it, and with the altered speech I took it to the printers. I wrote in speeches that I knew were never made. The original report that I referred to in my examination-in-chief as having been altered was Delyannis's speech preceded by the usual heading. I was anticipating what would occur and put in the formal matter. I made notes of what they wanted me to put in in my note book. I have not that here. It will be found that the copy I wrote is very different to the stuff that actually appeared in the paper; Delyannis came down at 8 p.m. that night to the printers and he altered in ink the proofs of the discussion that I had written up, saying that it was not strong enough against Hawton. He practically pulled the paper to pieces, and it did not get on to the machine until 1.30 or 2 a.m. owing to the alterations that had to be made. (Mr. Valetta called for these altered proofs.) This is the first portion with the chairman's speech attached, which I gave to the printer before I went to the meeting (Exhibit 29), and this is the concluding portion of the meeting as written by me when I returned to the printer's. According to this marked copy, except for the name of "Adams" being substituted for Pappa in my writing, I see no alterations here. I was under the impression that Delyannis made the alterations in this portion, but it appears I am mistaken. I should like to see the body of the report; if the alterations were not made in the discussion they were made in the speech. I am prepared to swear he came to the printer's at 8 p.m. and he remained till 9 p.m., and if the proofs that were passed that night at the meeting are produced I can show his writing on them. I had the 16 pages made up in news-paper form when Delyannis came down, and he pulled the paper to pieces. The workmen told me afterwards they were there till 1.30 a.m. making the alterations. It can be proved by the minutes of the meeting that the report is not a true one. Laxon will not be found as being present. He is the professional billiard champion of Johannesburg, and I knew as a fact when I put him in that he was not present. I knew hardly any of the people who attended the meeting of November 11 of the Reorganisation and Control Syndicate

Delyannis altered the name of "Pappa" to "Adams" in red ink on my original manuscript, but I am not prepared to say what other alterations were made without seeing that. I never altered the names in consequence of being "fuddled." I was a strict teetotaller at this time. None of the 40 shareholders present, as far as I know, complained that the report was an incorrect one, but I did not see the correspondence. It may be substantially correct except for the names. I remember now Mr. Scott Ellis, a share-holder, complained that a question he had asked Delyannis, whether he was the same man as "De Lyann," through whom he had bought Atlas Bank shares, was not put in. I remember the question being asked. It was I who wrote the altered article on the Henriquez Estates as it appeared, and not Raymond Radcliffe, who is a very well-known writer on financial matters. Delyannis often asked me to take extracts out of other papers. This is a printed pamphlet which he has altered a little and called original (Exhibit 30). I was very hard-worked, and sometimes in order to fill an odd space at the last minute I had to put extracts in. We had no first-hand information from the foreign bourses and we had to take the reports from other papers; 95 per cent, of the investment articles were original. If I knew the date on which this article on the speculative market was taken from another newspaper I could give you the reason for its being taken. These articles shown me taken from newspapers were probably put aside as a stand-by and not published at all. If my manuscript covering the time that I was there were produced it would be found very little has been taken from other papers. I did not write the "White Hill" letter and reply in the issue of October 23 on my own responsibility; it was no interest to me to run down Newberry. My suggestion is that he tried to get money out of Newberry. As regards the article in November 20 issue Delyannis brought it to me himself on a typewritten slip that had been sent out from Newberry's office (Exhibit 36), and said to me, "Write on these lines this week."

BESSIE FLORENCE STUMBLES . I was employed as a typewriter and in generally managing the business by Delyannis from May, 1907, to September, 1908, first at Austin Friars and then at Cable House, New Broad Street. I was employed in doing work for the Atlas Finance Corporation, which was afterwards changed to "Atlas Banking Corporation." I remember the Madame Catanomany advertisement appearing in the "Cosmopolitan Financier" of August, 1907. Inquiries used to come in to 312, Regent Street, and an office boy was sent from Cable House to fetch them. I used to copy these replies. Delyannis addressed envelopes in Greek, and I enclosed the copies I had made in them. They were sent to Athens. When they came back the replies were in Greek, and Delyannis dictated the translation of them to me, and I posted the answers to the inquirers. I believe there was a cheque sent on one occasion to Greece. There was another man who on occasions wrote out English translations and gave me them to copy. All this was done at the offices of the Atlas Finance Corporation.

Cross-examined. I cannot remember whether at the beginning there was no charge for inquiries. There were not very many replies. I should think not more than a dozen contained sixpenny postal orders. Borne of the inquiries came without money. There was some money sent other than sixpenny postal orders, but I cannot remember how much. I did not keep an account of what money I spent for stamps and envelopes. The money that came in was paid in to the "Cosmopolitan Financier" account at the bank.

(Saturday, June 11.)

WM. CHAS. HART SAXEBY . (Recalled. Further cross-examined.) I wrote the article attacking Russian Estates and Mines on October 20 from materials supplied by Dr. Pooptis and Burrough at prosecutor's request. If untrue it was a very libellous article. I was told by prosecutor to make it as strong as I possibly could. Walter Crotch was attacked, and he brought an action for libel against Delyannis and the Cosmopolitan Publications, Limited. Justification was pleaded. Hillyar prosecuted Delyannis for malicious libel; he apologised at the Guildhall and both actions were dropped. I did not tell Harris, the printer, that he need have no fear of publishing the present pamphlet because there was plenty of money from others behind me. I have Lad 5,000 printed, of which I have sent 1,500 into the country by post and sold 1,250 to five people. My address on the pamphlet is Carlton Chambers, which is another entrance to 118, London Wall, the address of the Prudential Register, Limited, of which Hawton is managing director.

Re-examined. The article I wrote on October 20 was submitted to prosecutor; he paid me £1 1s. for it; he said there was more wanted to go into it, and he proceeded to add to it.

SARAH GREENING , 179, Sumett Road, Peckham Rye, widow. I was a shareholder in Cosmopolitan Publications, Limited, and paid three years' subscriptions to the "Cosmopolitan Financier" newspaper. I received circular of March 1, 1908, stating that funds deposited in the Atlas Bank were guaranteed by Government and Corporation stock held by the company. In May, 1908, I deposited £200 at 7 per cent, and received £1 3s. 4d. a month interest during a year, at the end of which I wrote to the editor of the "Financier" and saw Delyannis (prosecutor), who advised me to continue my deposit. I had no idea that the "Financier" was connected with the Atlas Bank. On January 13,1910, I asked Delyannis to sell my shares; he said he could not do so then. The bank has since been wound up, and I have received none of my £200 back.

(Monday, June 13.)

AUGUSTUS WILLIE HAWTON , managing director, Prudential Registry, Limited, 118, London Wall. In the summer of 1908 I was doing business as a dealer in stocks and shares on my own account in Manchester when I came into touch with King, with the result that I accepted an appointment

as manager of the Manchester office of Cosmopolitan Publications, Limited, at 3, John Dalton Street. I began about September 12, 1908. The business carried on was the sale and purchase of stocks and shares and also "pushing" the "Cosmopolitan Financier." The shares were all for investment, that is to say, they were all taken up. The shares advised were those likely to rise in value. When I received an order from a client I generally wired it to the Atlas Banking Company in. London. I first saw Delyannis about the end of November, 1908. Sometimes the money would come to me with the order, and this money was all remitted to London, the letters being generally addressed to "B. R. King, Atlas Banking Corporation." The first moneys I received I paid to King personally in Manchester, and then he told me not to address any more letters to the Cosmopolitan Publications Company's registered address at Princes Chambers, as it was only a small publishing office, but to him at New Broad Street, where all the business was done. These are the cheques (Exhibit 42) which I sent to the Atlas Banking Corporation drawn on my account. Two of the terms of the agreement under which I was engaged were that I should provide a nucleus of £25 for a banking account in my own name in Manchester, and that I should take 100 £1 shares in Cosmopolitan Publications, Limited. This is the agreement dated September 12, 1908, signed "Bertram R. King" (Exhibit 43). I was to receive 35 per cent. Of the net profits, 7s. 6d. for each annual subscription secured for the "Cosmopolitan Financier," 25 per cent. commission on all advertisements procured, £2 a week being guaranteed, this latter to be increased to £3 on my taking up the stock. In December, 1909, I went to the Waldorf Hotel, London, to attend a meeting of the shareholders of the Cosmopolitan Publications, Limited, but I was told I was not a shareholder and was refused admittance. I had never transferred my shares, and I contend that I was. Eventually a branch office called a "Bureau" was opened in Liverpool in March, I think, of 1909. A Mr. Southwood and I went to see Delyannis and King in London with a view to Southwood taking the managership of the Liverpool branch. Delyannis suggested to him that he should invest £300, but this he refused to do. They lost some good clients at the beginning of the business because the transfers for which I had sent the money from Manchester were from four to six weeks late in coming forward. Afterwards things improved a little, until towards the end of May, 1909, they did not come at all, with the result that at the end of June transfers to the amount of £1,600 were due to clients. In June a Mr. Wyatt ordered 50 Biograph Theatre, Limited, shares and 50 Tominil shares, and on July 27 he paid £92 12s. 6d. for the two lots. On June 28 Miss Anne Tannar ordered 10 Rhodesian Copper shares, paying on July 24 £5 8s. 6d., and on September 27 10 Lyell Comstock shares, paying £2 2s. 3d. A Mr. Herbert Taylor paid in August £5 2s. 3d. for 25 Ashanti Quartzite shares. I received on June 9 from Liverpool (all money from there being transmitted to London through me) £139 15s. 2d. from a Mr. Henry Brown for certain shares. I forwarded all these orders with the money on to London. In some cases I used to send banknotes; where

the amount was large I sometimes sent the original cheque; and when I received small sums in cash I paid them into my account and sent my own cheque. I have received no transfers for the money I sent from the clients I have named. On June 30 of that year King telephoned me from London saying, "We have been caught in the Kaffir slump—Villa Deeps. I want you, if you possibly can, to let us have £500. Our difficulties are only temporary, and we shall be able to let you have the money back in two or three weeks," I told him it was not convenient to me to send £500. He pressed me very hard to let him have as much as I could, and said, "Get all the money you can from your clients and send us a cheque. I will see that it does not come into your bank for two or three days, so that you will have time to cover the cheque if you have not sufficient balance in your bank now." I sent this cheque for £400, made payable to the Atlas Banking Corporation, on that distinct understanding. The following morning my bank manager told me that telegraphic clearance had been made on the cheque, and I rang up King and asked him for an explanation, and he said they had not paid it into their own account, but they had paid it to Dupre and Company, the manager of whom, in Dupre's absence, had cleared it. On August 12 I went to London and King, who met me, said, "We are in difficulties, but I think £2,000 would put us straight. If you can raise this sum I will suggest to M. Delyannis that we get another manager for the Manchester office and that you should come to London and be joint manager with me." I went next morning to New Broad Street, where I saw Delyannis, King, and Pappa. Delyannis asked King to leave the room, and then he said to me, "King is a very good chap, but he is no manager. If you can find sufficient money to clear our temporary difficulties, I will give you the sole management of the business." He said £2,000 to £3,000 would be required. No determination was come to then, and I went back to Manchester. I afterwards came to London and made inquiries of Fletcher, the cashier and secretary of the company, and Miss Flint, the confidential clerk. I never accepted the proposal. Art order was made for the winding up of the Atlas Bank on October 13, and shortly after Delyannis proposed to issue Debentures of the Cosmopolitan Publications to the amount of £10,000 or £20,000. I forget which. He circularised the shareholders of that company and the subscribers of the "Cosmopolitan Financier" and put an advertisement in that paper offering Debentures for sale; he said he thought there would be no difficulty in placing £5,000 or £6,000 worth. One of the objects was to persuade the clients to take them instead of the shares for which they had paid. The Debenture issue was made, and "Cosmopolitan Investments Bureau, Limited," was formed. Cosmopolitan Publications, Limited, were the vendors, and Allen and I were nominated by Delyannis as two of the directors. This cheque for £366, dated October 19, 1909, made payable to Delyannis (Exhibit 44) was drawn by Allen and myself as directors, and given to him for his private purposes, on the promise that he would repay it in a day or two. We got £100 back a few days after, and we have taken the office furniture, of which this is an inventory, dated

November 4 (Exhibit 45) as part payment of the balance. He charged us 12 guineas for three weeks' accommodation at his offices, which we disputed; we simply went in there and did his work, as well as our own. About the end of October he told me (that Hudson's Consolidated had refused to pay for the Barranca Mine report, and that he would go for them, and about a fortnight after I saw an article or comment in the "Cosmoplitan Financier" upon some company that Hudson's were running. Shortly after Cosmoplitan Investments Bureau, Limited had been started there was a breach between Delyannis and myself because he claimed profit on some shares which he thought I ought to have bought for him, but which I had refused to do because he owed us £140. He immediately issued this circular, not only to all the shareholders of my company but about a thousand people who would be likely to deal with us, attacking us (Exhibit 28). From that time he always mentioned the company unfavourably.

Cross-examined. When I first met King he told me he was a director of Cosmopolitan Publications, Limited, and they were about to open an office in Manchester, and that the company had taken an office there. I know the rent notes used to come in made out to him. He was in the office with a Mr. Pangelow before I went there, and it was being fitted up. I saw him about twice from the time I took over the active management of the business to the end of November. I do not think I ever saw Delyannis or had any corresponce with him during that time. It was a perfectly honest business. I think I have produced all the cheques showing the money remitted to London. I opened the account in my name, probably about the end of December, 1908. March, 1909, would be about the date of the first cheque remitted. I made no cheque payable to Delyannis for the Manchester office. Probably one or two were made out to King. When the transfers failed to come at the end of May I telephoned repeatedly to the Atlas Bank, and when I failed to get King I spoke to Delyannis. I never paid for the shares which I was to take up as a term of the engagement. Both Wyatt and Miss Tanner had bought shares, and had them delivered before the transactions I have referred to, in which they did not get the shares. June 28, which I gave as the date when Miss Tanner ordered the Rhodesian shares is wrong. I think the Official Receiver has the books which would show the date. We kept a proper set of books at Manchester, but I have only the rough cash-book here which would not show it. When we, the Cosmopolitan Investments Bureau, Limited, got possession of the Manchester and Liverpool offices on October 13, 1908, we used the old set of books, and when I closed them I left all the books there for the vendors, the Cosmopolitan Publications, Limited. The Cosmopolitan Investments Bureau, Limited, was turned into Prudential Investment Registry, Limited, of which I am a managing director. I agree that the date of ordering the shares was in most cases within a fortnight of the date of payment. Although no transfers had come through from June we continued to accept orders and money until as late as September. I understood that the reason why the transfers did not come was

because the Atlas Bank and Cosmopolitan Publications were in difficulties. I understood it was the Atlas Bank who were to buy the shares through members of the Stock Exchange. I see that the only cheques made payable to Cosmoplitan Publications, Limited, in this bundle that I have produced are for subscriptions or advance proofs and not for shares. I went on accepting orders up to September, because in August Delyannis said in August that by issuing these Debentures he thought he would be able to obtain the shares that had been paid for, and deliver them, and from the end of May, when the transfers ceased to come, till August I believed King when he said the difficulties were only temporary, and that Atlas would pull round. On June 20 I understood from King that I was to make up as much of the £500 as I could from the Manchester client's money, and the rest I was to make up out of my own pocket. £150 of the £400 I sent was mine. I sent a detailed account, copy of which should be in the letter book, and I got an acknowledgment which I have not here. I kept the moneys that came into the Manchester office till I was paid. It is untrue to say that all the £400 was the Manchester Bureau's money, and that I improperly kept back money which came into the bureau afterwards. I only had one banking account for the Manchester business, and my own money was mixed up with the money of the business. I should be surprised to hear that the Debentures were issued before the order and the winding-up of the Atlas. I am certain that Delyannis suggested the issue of Debentures when I saw him about October 13. Every penny received by the Manchester branch went to the Atlas Bank. The Bureau failed because King as director of the Cosmopolitan Publications, Limited, failed to send the shares. King told me that his company banked with the Atlas, and I made the cheques payable to the Atlas, and they were endorsed by them. I expected to receive the shares from them, but although all my letters were addressed to King, of the Atlas Banking Corporation, the replies sent were all on Cosmopolitan Financier paper. When I came to London after the Atlas Bank failed I said to Delyannis that the Manchester business ought to be saved as the profits amounted to £2,000 a year, and we discussed the best way to pay the £1,600 due to clients. It was no fault of mine that it failed; it was due to the failure of the Atlas. The suggestion was made that a new company should be formed to take over the business at the different Bureaus with a minimum capital of £2,000, £1,500 of which was to be used for paying the creditors of the Bureaus we were acquiring. The Liverpool branch owed about £250. I do not know what the London branch owed. I did not tell Delyannis that I could get a chartered accountant's certificate that the Manchester business was worth £2,000 a year; I said one could not be procured. I was told £2,000 by King. I was trustee of the money paid for shares, and then I became a director of the company when formed. I do not think I was a director of Cosmopolitan Publications, Limited. I was nominated by Delyannis because of the success of the Manchester business, and I got a transfer for 500 ordinary one shilling shares in the joint names of King and myself, but my appointment was never entered on the minutes. I

sent my signature as director to the company's bankers, and I authorised the secretary to pay my fees to King. The nominal share capital of the company was—25,000, of which 5,000 Ordinary £1 shares were issued to the public. I took and paid for 500. 2,093 were taken up, including mine and 100 which Allen took up. The company did not get £2,000, because the payments were spread over 16 months; the shares are not yet fully paid. 2s. 6d. a share was paid on application. Delyannis never called on me to use the money that came in to pay the Manchester creditors. I did not pay them; we did not owe the money. The new company had by written agreement a six months' option on the Liverpool, Manchester, and London branches, and we took possession in October, 'but before the end of December we had lost £200 and we refused to exercise the option, and I sent the keys back to Delyannis. This prospectus (Exhibit 27) is not the one that was finally issued. We did not take over the branches; we only had an option on them, as will be seen set out in the prospectus that was really issued (Exhibit 47). The fact that I did not pay the Manchester creditors was not the reason why Delyannis sent out circulars not to subscribe any more money; it was because he wanted some share profit that he was not entitled to. The company was formed to run a stock and share business—not to pay off the vendor company's debts. Delyannis refused to pay for 100 snares that he had subscribed for, and another share-holder made an attempt to wind the company up, but he failed.

Re-examined. Exhibit 48 is the option dated October 2,1909, which I have referred to, and it is mentioned in the prospectus (Exhibit 47). At the end of a month we decided not to exercise the option. I went to Liverpool on December 17 or 18, discharged the staff, closed the offices, and sent the keys to Cosmopolitan Publications, Limited, and I did the same thing with the Manchester office. I left all the books on the premises with the exception of the cash book. I have not found the books I left there in the possession of the Official Receiver. I never understood I was King's servant at Manchester; my agreement was with Cosmopolitan Publications, Limited. Early in December I wrote to Miss Cave in Manchester to make me a list of the creditors, and I compared the list she made (Exhibit 49) with the books and found it correct. The total is £1,682 12s. 8d. Exhibit 50 is the letter Delyannis wrote to the Investment Bureau, Limited, dated November 20, instructing them to sell the shares he thought we had bought for him, and Exhibit 51 is the letter of November 25, in which he says, "I want my 100 Ashanti sold. That's the long and short of it. I am sorry to see you presume to treat me as some irresponsible outsider." The idea of issuing debentures was that the Manchester creditors should take them instead of the shares they had bought.

To the Judge. Delyannis prepared the prospectus that was actually sent out. (Exhibit 47).

ANNIE TANNER , 16, Greening Street, Manchester. I do not care to state my occupation if I am not compelled. On July 24 I proposed to buy 10 Rhodesian Copper shares from the Cosmopolitan Investment Bureau at 3, John Dalton Street, and I paid them £5 8s. 6d., for which this is the receipt. On September 27 I bought for £2 2s. 3d.

10 Mount Lyell Comstock shares, for which this is the receipt. I have made application to the Cosmopolitan Publications, Limited, for these shares, but I have never received them.

Cross-examined. My first letter was ignored, and the next letter asked me to give them particulars. I thought it was no use bothering and I put it on the fire. I paid the money to Hawton, and the receipt is signed "A. W. Hawton." The account is headed "Cosmopolitan Financier Investment Bureau," and all cheques were to be made payable to that company.

BENJAMIN PEDE , Grand Parade, Eastbourne. I have been a reader of the "Cosmopolitan Financier" ever since it was published. I received this contract note (Exhibit 57) of June 9, 1909, on paper headed, "Atlas Banking Corporation, Limited, Investment Bankers, Cable House, New Broad Street, E.C.," saying that they had sold me (to take up) five Huelva Copper shares at 26s. 6d., which, together with fees, came to £6 16s. 6d.; it was signed "For the Atlas Banking Corporation, Limited. E. A. Allen." I sent the £6 16s. 6d. and on June 11 I received this acknowledgment (Exhibit 58). I never received the shares or my money back. On November 25 I received a sold note (Exhibit 59) for 50 United Sumatra shares and 25 Anglo-American Cold Storage Ordinary shares, the price being £41 17s. 6d. It was signed by Saxeby for the "Cosmopolitan Financier Investment Department." I sent the money and received a transfer for the Anglo-American shares, which I signed and returned by a letter dated November 16 (Exhibit 60). I do not know whether that date is corrector not. On January 26 I received a letter (Exhibit 61) headed "Cosmopolitan Financier," signed "Investment Manager, T.E.R.," acknowledging transfer, and saying the transfer for the Sumatra shares would follow in a few days. On February 8 I received a letter (Exhibit 62) signed "E. Riches, Secretary for Cosmopolitan Publications, Limited," regretting the delay in sending this transfer. I received this certificate for the Anglo-American shares (Exhibit 63). This is my letter of November 22 (Exhibit 64), which I had written asking them to buy the Sumatra shares, and the balance therein referred to was sent me in Exhibit 61. I never received those shares. In answer to my letter about them I received on February 28 this letter (Exhibit 65) on "Cosmopolitan Financier" paper, signed "D. J. Delyannis," saying that the shares had been bought from a member of the Stock Exchange, but owing to pressure of business they had not yet been delivered, expressing great indignation at my doubting their integrity.

(Tuesday, June 14.)

The jury intimated that they were unanimously of opinion that the evidence they had heard amply justified the statements set forth in the prisoner's pamphlet; there seemed to be practically nothing in the prosecution; they considered the cross-examination had, if anything, assisted the defence.

The Common Serjeant said that the jury must keep an open mind, as they had only heard one side, and the prosecution was entitled to call evidence in reply.

Mr. Valetta said after that intimation he would complete his case by producing certain documents.

CLAUDE VALENTINE LABROW , Official Receiver's Department, produced books and documents of Cosmopolitan Publications, Limited, and the Atlas Bank.

MICHAEL THEODOSIUS , secretary to the Greek Consulate, Doctor of Laws, Athens, translated decree of the Court of Patras to the effect that prosecutor had been adjudged bankrupt in October, 1907, and was liable to arrest.

Cross-examined. In every bankruptcy judgment there is an order that the debtor can be arrested if he does not pay or give sufficient security, provided the creditor takes action.

Mr. Travers Humphreys submitted that there was no evidence in support of the plea of justification; no evidence that the prosecutor carried on a "bucket-shop" business in the name of Wilcox and Martin, or a fortune-telling business in the name of Madame Catinomany.

The Common Serjeant held that there was evidence for the jury.

(Evidence in rebuttal.)

DEMETRIUS JOHN DELYANNIS . I am a Greek subject, born in Corinth in 1870. I came to school in England in 1886, returning to Greece in 1891 to serve a year in the Army. From 1893 to 1896 I was Greek Consul in Liban, Russia, and in 1896 was promoted to the position of Consul-General in Moscow. In 1897 I served through the Greco-Turkish war, and remained in the Greek Army till the end of 1899. I then went to Italy for my health, and represented the "Daily Graphic," lived in Paris during 1900, returned to Greece for three months, and was seven months in the United States, after which I came to London again, and in January, 1903, went to Greece on behalf of Seligman Brothers to negotiate a railway concession. I also obtained a Government monopoly for currants which involved several visits to Greece, as the English Government objected to the concession as a monopoly likely to increase the cost of fruit in England. I have appealed against the judgment in bankruptcy and am not now or ever have been liable to arrest. I have repeatedly since been to Greece, and in 1905 was elected as a member of Parliament there. I am now a candidate to represent Corinth in the National Congress. I started the "Cosmopolitan Financier" in July, 1907, and was the proprietor until Cosmopolitan Publications, Limited, was started, which company acquired the paper, and in which I held, with my brother, some 3,000 shares. The articles called "Straight Talks to my Readers" were written by prisoner from my notes. I agreed to receive £1,000 a year as editor, but took my salary in the form of preference shares. I signed articles in the name of "De Lyann." The "Financier" could not obtain advertisements from banks, insurance

companies, etc., and would not receive them from "bucket shop" keepers, and it was a suggestion of King, managing director of the Atlas Banking; Company, that the "Financier" should recommend their subscribers to buy stocks and shares through the Atlas. Bank, the "Financier" receiving half commission on the business obtained. In September, 1908, King told me he had taken an office for the Bureau at Manchester. I objected on the ground of expense, but King said the Atlas Company took the whole responsibility. I had nothing to do with the Bureau until June, 1909, when people who were not getting their stocks regularly wrote to me. I did not know how the Atlas Company was doing. I was a director of the Atlas Bank down to 1908. In June, 1909, King told me two or three clients had bought Villa Deep shares who had not paid, and the shares having gone down he wanted £1,000 to finance the account; and that he had got £500. I procured a friend to advance the additional £500 on the acceptance of the Atlas Corporation. Hawton said that Cosmopolitan Publications, Limited, were morally but not legally responsible for the Atlas liabilities, and we decided to form a new company called the Cosmopolitan Investments Bureau. I issued the prospectus to about 1,200 subscribers to the "Financier," and received applications for shares to the amount of £1,200. Hawton having received the £1,200 did not settle the liabilities of the Manchester Bureau, and I sent out a circular explaining the fact to those who had subscribed. Prisoner entered my employ in July, 1909; he worked for about 10 days, and then absented himself for eight or 10 days, when he returned very penitent, and said he had been "on the drink," and was starving. I employed him to write an article for which I paid him £5 5s., and afterwards employed him to write an independent article for the "Financier" on the Stock Markets, giving particulars of stocks to be bought for investment and for speculation. I have never in my lift bought or sold shares for myself or anyone else. I did not try to get Ashanti shares from Grimwade, and had no interest in subscribers to the "Financier" taking up options in those shares. I have lost heavily by the failure of the Atlas Bank—I was one of the largest shareholders—my brother, two others, and myself jointly held 36,000 fully-paid 5s. shares in consideration of my halving sold to that company the goodwill, etc., of the Atlas Finance Corporation. I never sold any of those shares. Prisoner wrote the article on Russian Mines and Estates, Limited, on my suggestion, but from materials which he obtained from other sources.

Cross-examined. I started the "Cosmopolitan Financier" on July 1, 1907. In May, 1907, I was interested in the starting of International Concessions, Limited, its address was 10 and 11, Austin Friars; the directors were Matthias, myself, and Percival Johnson. In August, 1907, the name of that company was changed to the "Atlas Banking Corporation, Limited"; that company purchased the business carried on by the Atlas Financial Corporation, which consisted of the sale of Premium Bonds, and which I had bought in May from a Greek named George Pangelow and carried on up to

August, 1907. I paid £400 for the business. It was sold for £1,200 in cash and 36,000 fully-paid shares of 5s. each.

(Wednesday, June 15.)

RAYMOND RADCLIFFE . I have had 30 years' experience as a journalist in London, and I wrote on financial matters in a number of daily and weekly papers. For about a year I have contributed to the "Cosmopolitan Financier," as a rule about two pages consisting of comments on financial matters of the week. Delyannis never tried to influence me in what I should write. I have continued to contribute up to the present time. In October last year I wrote a paragraph about the Henriquez Estates from information I received from an entirely outside source. He never suggested how I should deal with the matter, and I never had any conversation with him or anybody on his behalf about it. It appeared in the issue of October 9 with the wording slightly altered, but the facts were the same as given to me. Prisoner occasionally came over to my office and I used to give him information and advice when he asked for it. My opinion that the shares in the Henriquez Estates could not be recommended is an absolutely honest one.

Cross-examined. I will not be certain whether it was the Wednesday morning or Thursday morning that I delivered my copy; I could not say it was not my habit to deliver on Thursday morning. I do not think anybody knew then that the shares in the Henriquez Estates were to be split except myself and the people connected with the company, who themselves, I think, denied the fact. Anybody by looking at the book of reference could see that the property comprised 40,000 acres, but I think it is an important fact that only 250 acres were planted.

DEMETRIUS JOHN DELYANNIS . (Recalled. Further cross-examined.) I bought the Atlas Corporation business from Pangelow in June for £200 and paid £150 liabilities. I had the 36,000 shares allotted to me, but I had not the £1,250 paid me; I had it in a book-keeping way. Pangelow had been here two years previous to February as a director of International Concessions, Limited, which altered its name in that month to the "Atlas Banking Corporation," which on April 22, 1908, moved to 10 and 11, Austin Friars, and afterwards to New Broad Street. The Reorganisation and Control Syndicate in July, 1909, were at 54, New Broad Street, and the Atlas at No. 55; I deny that they were on the opposite sides of the same passage, and that one passage led through 54 and 55. There was a communicating door between the two sets of offices. In the old days my private office communicated with the Atlas Bank board room as it was then. Saxeby never worked in a room behind my office; at the time he came into my employ in July, 1909, I was using the board room as my private room and Saxeby and Riches worked in the room I had left, and communication between the board room and the other two rooms was then shut off. On the door of Princes Chambers, 9, Copthall Avenue, the registered offices of the Cosmopolitan Publications, Limited, the name "Cosmopolitan Investments

Bureau, Limited," was printed up. I did not ask Percival Johnson's permission to put up the name "Wilcox and Martin" at 41, Eastcheap; that was the name he used as advertising agents for the "Cosmopolitan Financier." It is true he had taken an interest in International Concessions, Limited. In the issue of July, 1907, I made things unpleasant for "bucket shops." I draw a distinction between outside brokers and bucket shops. The advertisement of Wilcox and Martin of Eastcheap in that issue as stock and share brokers was a dummy one, which I inserted at Johnson's suggestion as a means of leading to genuine advertisements. I also inserted at his suggestion Advertisements offering 100 per cent, profits, and we would send the "Cosmopolitan Financier" in answer to replies and get them to subscribe. We never received any replies. Percival Johnson traded as an advertising agent under the name of "Wilcox and Martin." The advertisement in the issue of March 20, 1909, offering cash prizes for ideas of original advertisements in the name of "Wilcox and Perry, Publicity Brokers, 312, Regent Street, W.," was mine. I never had a bedroom there; I admit I slept there sometimes. I had a room where I kept books, luggage and things. I resigned my directorship of the Atlas Bank in October, 1908, and I seriously say from that time I had no control of the management and I knew nothing of what they were doing; but, as I said before, having a large number of shares I could at any time call a general meeting and sack anybody and put anybody on. As from October, 1908, to October, 1909, the policy of the Atlas was not controlled by the "Cosmopolitan Financier." I absolutely deny that the object of the Atlas was to carry out the transactions in stocks and shares recommended by the paper. I still say that after seeing the advertisement in the issue of February 13, 1909, in which we invite subscribers to go to the Atlas Bank to open, without security or guarantors, credit overdrafts from £10 to £250 at 4 per cent. We, the Cosmopolitan Publications, Limited, spent £5,000 in advertising that scheme in different papers, The essential part of the scheme was that applicants for overdrafts should subscribe to the paper. We hoped to get 250,000 subscriptions of 15s. 6d. each in this way, and this would form the basis for overdrafts being made to 10 per cent, of the applicants, which 10 per cent, was arrived at by ballot, attended by chartered accountants, solicitors, and other independent persons. It was a perfectly genuine scheme. We advertise that we indemnify our bankers, the Atlas, against loss. We asked them to fall in with the scheme with us. There were no claims against the Atlas because of this. We advertised it in several numbers. I distinctly disapproved of the Manchester Bureau business, and I fought with King about it. It is true I could have "chucked" King out, but he did not say, "I defy you"; he said, "I have taken the office." About the beginning of December, 1908, at his request I went to Manchester and saw Hawton, and I was satisfied. I was in Paris on September 5, 1908, when it was advertised in the "Cosmopolitan Financier"; and I did did not know of it until I came back on September 8. I did not repudiate the advertisement. The Brussels branch

was opened before December, but it was not for the Manchester class of business; it was opened because of the premium bonds, which were not legal here. The Sheffield branch, which was closed down, was opened after the Manchester branch. By that time I was reconciled to the idea. When I fought the idea of the Manchester office with King he said, "I have taken the office. We will pay the expenses. There will be no liability. You need not pay, nor anybody else, but if there should result any business you will have half commission." I remember Pooptis calling on me with a Russian gentleman about 12 a.m. on September 19. I had first seen him in the beginning of 1907 once or twice, and then I saw him again towards the end of last year on two or three occasions; I was not friends with him at all. I never heard the name of "Crotch" until Saxeby brought me the libellous article in the October 23 issue called "Russian Estates and Mines" to pass through for the Press. It purports to be one of my own straight talks to my readers, but I do not recognise my writing. Pooptis did not invite me to write that article against Crotch. I did not write it at all. I never sent Stumbles, one of my clerks, to Norwich, where Crotch lives, with 1,000 copies of the paper with that article in to distribute. Special posters were not printed for it. I know Stumbles went there. It is absolutely untrue that I had an interview with Pooptis on the same evening that Stumbles went to Norwich; I never saw him at all that evening. Stumbles was not in my or the company's employ then; he simply came to address envelopes whenever we had work. I suppose the secretary of the company paid him, but I did not. Crotch does not live at Norwich; it is only a company promoting address. I cannot account for Stumbles having been sent there. I did not complain about it on the following morning when I found out. I do not know that Wood went to Croydon. I flatly deny that Saxeby had written an article in the issue of October 9, 1909, in favour of the Henriquez Estates, and that I altered it into an article condemning that company. I never knew there was such a letter as the "White Hill" letter in the October 9 issue until these proceedings, and I swear that I never dictated that to Saxeby with or without Pappa. All the letters from inquirers should have been kept, and they would be with the Official Receiver. I did not know that Newberry was connected with the Arizona Company. I did not write replies to correspondence, although they are signed "Editor." As regards my saying to an inquirer that I did not know much about Newberry and would make the inquiries, I may have said to Saxeby in giving him instructions to answer it, "Newberry does not appear to be a man capable of such things (I knew enough of him to say that), but I will make inquiries and find out." Radcliffe wrote the Henriquer Estates article in the October 9 issue, and I remonstrated with him for it, as Newberry was a personal friend of mine. Prisoner told me that the article inserted in the November 20 issue supporting the company was merely the reproduction of a slip issued from Newberry's office, and which appeared in every paper. It is insolence to suggest that I had

taken money from Newberry and altered my views as to the company. I have not received a farthing from him at any time. I have known Count Ward eight or nine months. I knew of the Anglo-American Company six days before the public issue. I never knew of the article about it in the October 23 issue until these proceedings. I never sent prisoner or anyone to get an advertisement from him, and I never spoke to him about it. The shares were given to me as payment for the advertisement instead of cash. Count Ward may have telephoned to me on October 26, but I never told Saxeby to tell him that I was out, or "I bet he is in a funk." I cannot swear he did not come to the office that day. I signed the transfer for some of the shares to Pede. The shares were given to Cosmopolitan Publications, Limited. Prisoner, as sub-editor, wrote what he liked about companies and I checked it afterwards. I did not have anything to do with letters that came about stocks and shares. Pede's letter would not come to me at all and I never advised him to buy. If the letter had come to me I nevertheless would have done so. I generally recommended in the paper good shares. I knew the Hudson's Consolidated were behind Barranca Mines, Ashanti, and Gold Coast United, and I approved of their recommendation in the issue of September 11. I deny Hudson's used to cash cheques for me sometimes, which I afterwards met, and that about this time a Mr. Ohanlan refused to cash one. I did not send prisoner round to demand payment for inserting the reports of the proceedings of the Barranca Mines. He inserted the reports and told me afterwards that they would not pay. They ought to have paid for them. I do not know whether they have paid to this day. Grimwade rang me up the same day the prisoner told me about it and said they could not pay without the written order. There was no dispute about it. I went with him to the theatre the same evening. I did not say to prisoner, "I will make it hot for him—he won't pay." I never told Hawton that I would be revenged on Hudson's. I admit that there are attacks on them in the issues of December 18, January 12, 22, and February 26. I had told the subscribers that Hudson's had put a lot of money into the Huinac Company, and I found out they had done nothing of the kind and that they had not sent out an engineer to report on the property as they said they had done. When this begging letter of the Huinac directors was sent round to the shareholders the people who had bought on my advice naturally wrote to me and that is why I attacked Hudson's. They never dared to bring an action against me for the article "Huinac Directors' Mendacity." In July, 1909, my name appeared in "Truth's" Cautionary List and I brought an action against them the next week. It comes on for hearing next week. I cannot recollect whether I read the details of the article. The Atlas Bank paid for the advertisements mentioned in the article. Three months before the bank failed I transferred the account to the London Trading Bank. I knew it was going to fail in the first week in July. In June King had told me that it was in difficulties, and I told him to get from Hawton the money that was owing for stocks and the £500 I had lent, and thus pay the £1,000 deficit. I was in

Brussels when Mrs. Greening was recommended to hold on to the Atlas shares on May 22, and I did not know it had been written. The gilt-edged Government securities mentioned I know at that time were in the vaults of the company. I only heard from the Official Receiver when he took possession in September that there were no bonds to be found. I had £1,000 securities of my brother's there. The letter of April 6, 1908, was not signed by me.

WILLIAM MOHRING , compositor, Polsue, Limited. In and before December last I was employed by Messrs. Hammond and Co., who printed the "Cosmopolitan Financier." At 10 p.m. on December 31, whilst we were printing the issue for January 1 and it was practically ready to go on to the machine, Delyannis came down and wanted me to put at the foot of every page a line wishing the subscribers the compliments of the season, and I refused to do it because it would delay the work so much; it meant 10 hours more work. He said it did not matter. I do not remember his asking us to make any other alterations. Prisoner used to give us the corrected proofs, and we got them on this day from him.

Cross-examined. I will not say the proofs on this occasion had no corrections; they were corrected in the ordinary way. The reader after revising the proofs binds them up and puts them away.

WILLIAM WOOD . I have been in the employ of Cosmopolitan Publications, Limited, and I used to sit in the same room as prisoner at Ccpthall Avenue. It is not true to say that creditors were continually calling asking for the man who had had their money. I should have seen them if they had. Only once during the year I was there, from April, 1909, to this March, were the bailiffs put in.

Cross-examined. I was a clerk employed by Delyannis at £1 a week, and I was always at Copthall Avenue except at meal times. I was there at the same time as Kersey, who was there to look after the distribution of the papers. I was promoted to be secretary of the Cosmopolitan Investments Bureau, Limited, in September. I principally signed letters and other documents. Very soon after there was a bother between Delyannis and Hawton and my duties as secretary ceased. My salary at Christmas time, through a misunderstanding, was temporarily reduced to 15s. a week. It is £1 again now. I went to Croydon merely to push the sale of the paper there; it was nothing to do with Hellyar. Hellyar threatened one of the shopkeepers down there with legal proceedings if he continued selling the paper and he tore them all up. I do not know that I wanted to make it comfortable for him. I went there quite innocently, not knowing that the papers contained an attack upon him.

Re-examined. I live at Friends Road, Croydon, the bookseller was a man named Wyatt, who lived at the corner of the court. Mr. Riches, the secretary, sent me down.

REGINALD WARD , 6, Moorgate Street, E.C. I am a Count. I am not a director of the Anglo-American Cold Storage Company; in the autumn of last year I was the owner of the property and converted it into a limited liability company, retaining the larger interest. The prospectus was advertised in the "Cosmopolitan Financier" and I

paid De Lyann (Delyannis) 40 preference and 60 Ordinary shares for it. It is untrue that I gave him those shares as the price of his not attacking my company. I remember prisoner coming to the office sometimes for the delivery of shares, but it was with De Lyann that I made the arrangement.

Cross-examined. My advertising agent was Walter Judd. Prisoner may very likely have called about an advertisement and been, referred to him. I daresay I rang Delyannis up, but I do not remember an appointment being made. I may have gone to his office, but my recollection is that the arrangement was made in my office. I made out the transfer to him personally because I regarded him as the owner of Cosmopolitan Publications, Limited, who owned the paper.

GERALD SYDNEY BOYLE . I was formerly a clerk in Cosmopolitan Publications, Limited. I have investigated the books of the company with a view particularly of ascertaining the system with regard to customers who purchase options. I have the contracts from the brokers when the deal is done (produced), and ther art sufficient to cover the options bought.

Cross-examined. I am employed now by Delyannis, and it was from his office at 54, New Broad Street, that I obtained these contracts. We underwrite rubber shares now. I come here as representing the Receiver for the Debenture holders of Cosmopolitan Publications, Limited. We buy shares and sell and deliver shares. Delyannis pays for them by cheque drawn on his personal account. These contracts refer to one broker only. With the exception of one on December 28, 1909, they are all 1910 contracts. They are all there, unless the Official Receiver has any. I agree that they are all unstamped and they are between Cosmopolitan Publications, Limited, and a stockbroker named Kendall. All the shares were paid for to the best of my knowledge by Delyannis's cheque on his private account.

Re-examined. The Official Receiver had the books of the company after the winding-up. I have not got the contracts before this year.

Verdict: " We find that the plea of justification has been sustained, and, further, that the pamphlet was substantially correct, and that a public service has been rendered by its publication." The Common; Serjeant accordingly discharged prisoner and, on Mr. Valetta's application, ordered that Delyannis should pay the costs of the defence.

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