A COTTON MILL DEAL.

Press, Volume LVIII, Issue 17401, 11 March 1922, Page 12

A COTTON MILL DEAL.

ATT-Ehttn fiONSPIBAOY TO " DEFEAtn).. (Bv Cabla—Press Assooiallon—CopyrkW.) (Australiwi and N.Z, CeWb Awociftiion ) Y (Received March 10th, 6.6 p.m.) V V LONDON, March 9. • ! At the trial at the Ola Bailey of Ernest Terah Hooley. Thomas Fletcher (ex-Mayor of Derby), John Angus-Mac-Donald (ex-Mayor of .Ilkeston), Thomas Llewellyn Demery, Hooley's. secretary, William Alfred Wallis, a solicitor, and Bertrand Breakspear, Hooley's clerk, who are charged with: conspiracy to defraud in oonnexion with the flotation of the Jubilee Cotton Mills, Ltd., Oldham, Sir Richard Muir. for the proseoution, said Fletcher . purchased the mill irom a bankrupt - firm; paying about £B6OO for it. He then arranged with Hooley and Mac Donald to float the company, Fletcher receiving £20,000 in cash and; 85,000 shares. The purchas-. ere made, no attempt to work the mill, but used' it io : create shares and debentures, which, the public were induced to buybyths pretence that a dividend of 83 l-3rd_per cent, had been earned'and ,paid..ft was a. bogus dividend Ptyd from a bogus 'profit. Lewis, a'wealthy, young Cardiff shipowner, who was induced to invest, lost about £IOO,OOO in deals, with- Hooley, £44,500 of this amount being in connexion with the Jubilee mill. The shareholders' deficiency in connexion with the Jubilee mill was £129,000.