VICTORY BONDS.

Press, Volume LVIII, Issue 17401, 11 March 1922, Page 11

VICTORY BONDS.

CHARGE AGAINST HORATIO BOTTOMLEY. SERIOUS FRAUDS ALLEGED. (By Cable—Press Association—Copyright) and N.Z. Cable Association.) LONDON, March 9. In opening the case for the prosecution against Horatio Bottomley at Bow street Police Court,'Mr Travers Humphreys said that, by the end of 1919, £459,000 had l>ecn received from subscribers to the Victory Bonds Club, with which Bottomlev purchased bonds, nominally worth £oQO,OOO, but costing £421.000. On December 17th. £4OO 090 worth of bonds was deposited with a bank, so £IOO,OOO had already disappeared. By Juno 10th, 1920. the bank had paid aver all the bonds to Bottomley, and they were never returned. Eventually, the bonds were paid into Bottomlev's credit at the Credit Lyonnais as security for an overdraft on Bottomley's private account. Pledging and redeeming continued until the ehd of February, 1921, when the Lyons Bank ceased to hold any bonds, which from that date were lost to the subscribers. Throughout, there had been no trustees and Bottomlev had dealt with this enormous sum without check. As enrlv as Alienist 11th, 1919, Bottomlev drew £25.000. of which £20.000 was for the Northern Territory Syndicate, nominnlly intended to develop Northern Australia, but reftllv a mere name enabling Bottomley to keep another banking account'. The other •25000 was paid to Bottomley in notes. He used to take holidays at Ostend, where he had a stud of racehorses. Mr Bottomley: Rubbish. The Magistrate: -Don't interrupt! Mr lltimphreys: I have it in Bottomlev's handwriting, as he had to make a declaration under the Defence of the Realm Act before he Wftß' able to take motiev abroad. The rest of the £25.000 Was used to purchase the newspaper "National News," to huv shares in "John Bull, ' or was handed over to other of Bottomley's concerns. The case was adjourned till Mafeh 16th.

[A previous message statedAt the Bow Street Police Court, Horatio Bottomlev, M.P., was charged with converting to his own use £SOOO, part of the property of the Victory Bond Club, on September 10th, 1919. The Court was crowded, those present including Mr Reuben Bigland. Bottomiey conducted his own defence. Mr Travers Humphreys, prosecuting, said there would be a number of other charges against Bottomloy, which would be opened later, the liability being penal servitude.]