Complex sentence: Starting in 1927, an anonymous employee of the newspaper would visit seaside resorts, and anyone carrying a copy of the newspaper could challenge him with the words "You are Lobby Lud and I claim my five pounds", and receive the sum of money.
Split into simpler sentences: Starting in 1927, an anonymous employee of the newspaper would visit seaside resorts. Anyone carrying a copy of the newspaper could challenge him with the appropriate phrase, and receive the sum of money.