SENTENCE TO STAND

Evening Star, Issue 20942, 5 November 1931, Page 9

SENTENCE TO STAND

lord KYLSANT'S appeal dismissed Press Association—By Telegraph—Copyright. LONDON, November 4. Loic 1 Kylsant’s appeal and his application for reduction of his sentence were "dismissed. ' THE COURT'S JUDGMENT AMPLE EVIDENCE TO SUPPORT CONVICTION. LONDON, November 4. (Received November 5, at 11 a.m.) Lord Kylsant is likely to appeal to the House of Lords, A friend of Lord Kylsant said that ho received the decision with the same calm dignity that he maintained throughout the case. Mr Justice Avery, speaking _ deliberately, lengthily surveyed the history of the case, and expressed the opinion that there was ample evidence upon, which the jury could reach a conclusion. The prospectus was false in a material particular in that it conveyed a false impression by putting before the investors figures which _ apparently disclosed the existing position of the company, hut the facts were concealed. , In other words, the documents implied that the company was in a sound financial position, and that prudent investors could safely invest in it. This implication arose particularly from a statement that dividends had been regularly paid over a period of years. This was' misleading, because they were paid not from current, earnings, but from the earnings of the abnormal war-time period, and this was omitted from the document. If there was evidence that the document was false in the particulars already indicated there was ample evidence upon which the jury could find that the appellant knew of this falsity, knowing as ho did the means whereby the dividend was paid. _ The court unanimously came to the conclusion that there had been no disdirection of the jury, and that there was ample evidence upon which ’ the verdict must be supported, so tho appeal would he dismissed. Mr Justice Avory, after a brief consultation with his colleagues, added that the court was of opinion that the direction to tho jury was too favourable. , _ , „ Lady Kylsant'and tho Earl of Coventry (his son-in-law) saw Lord Kylsant before he was taken to prison in a taxi. [Lord Kylsant, chairman and managing director ,of the Royal Mail Steam Packet Company, the White Star Line, and the Union-Castle Line, with their associated companies, was found guilty on a charge of issuing a prospectus in June, 1928, false in a material particular He was sentenced to one years imprisonment in the second division. He was found not guilty on the two oilier counts.]