ACTION FOR LIBEL

Grey River Argus, 17 May 1938, Page 9

ACTION FOR LIBEL

—— i NATAL PAPER SUED. i CAPETOWN, April 25. 1 The first stage of a newspaper I “cause celebre” was decided to-day in favour of the newspaper. i Some time ago London Truth pub-; lished severe criticisms of the Schlesinger financial group’s system of financial control, which embraces fruit farms, theatres, insurance and other interests. The article was based on a pamphlet published in Pretoria, adversely criticising interlocking finance. The Natal Mercury, in a leading article urged controllers of the group to make a refutation of the criticisms, whereupon £lOO,OOO damages were claimed. The Mercury pleaded that the declaration disclosed no cause of action, and the Supreme Court found that the Mercury had not published any defamatory statements or intended to adopt the libel. The Schlesinger group was given leave to amend its declaration. In the last session of Parliament the Speaker disallowed references to the subject, as the case was pending. It is understood that an amendment to the company law next sesI sion will prohibit interlocking ' finance.