The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-01-07
LABOUCHERE VICTORIOUS.
An INTERESTING Libel SUIT AGAINST
THE EDITOR or TRUTH.
Gts Exposure Of "a Managers dishonesty Jus-
uned-Nhnt n Jury Ihouaht Of MIR. Hob-
ertaon's Peculiar Financial Operations.

nued-hhnt q Jury hhounht 81 VIZ hob-
ertson's Peculiar Financial Operations.
Pom N, ros,ioa T,r,e.
In the Queens Bench Division yesterday
Dec. 2O-bcfore Lord Chief Justce Cockburn
and special jury. tho action brought by Mr..
Wybrow Robertson. manager OF the Aquarium.
against Mr.. LabOuchere. for an alleged libel
In Truth imputinR to him that he had been dis
missed for dishonesty was concluded.
Mr.. Labouchcre justified this statement "a
true. 1t is admitted that in January 1876
charges were made against Mr.. Robertson
which he regarded as either groundess or at
tho worst. "a amounting to mere Irregularities
but which the directors deemed to involve his
honesty. and on that occasion no resigned. and
the question is whetherlne thus resigned his
Office compulsorily under charges Of dishon-
esty, or. as he said with an assurance from the
directors that there was no imputation upon
Mr.. Sergeant Ballantine and Mr. SERGEANT Par
2F clarke SHI %ePs ior de snd5sG o.
The Lord Chief Justce-What propose to do
sa be p55y ad 10
dismiss. that which occurred was a dismissal.
I shall reserve for the consideration, Of the
court the question OF law whether tho directors
Mr.. Russell summed up for the defendant
in reply for the plaintiff, after which the Lord
Chief Justice in summing up the case. said:
inserted and that II IL libellous. But the de-
did write and publish It. and viii prove pre- IT,
re may prove pqrt q it or the whole OF 1t; that
There are two questions involved. First was
the p6sn MI dSsmssed and then wa he dis
for dishonesty. he may have been guilty OF inn
proper conduct. yet not amounting to dishon-
plaintiffs case Dishonesty is by lar ' The most d
important question 80 will place that before
you first IL Involves an inquiry, into three
shares secondly. his completely with the fraud
Il cannot call II irregularityl of the three young
On tho 10Th OF June. 1875, the directors IN.
nounced that thoy would not allot any more
shares without u premium. Tho plaintiff sec-
ing that shares are becoming valuable. tells Mr.
Wyon that no Applies for 1000 shares aud he
signs form Of application. Mr. Robertson
ought then To have paid G2.OOO to the credit OF
tho company. lie ncglccts that important OBJ
ii,ga',0ns IL my nave DSen an 9v, rsleht' IN
10Th OF juno. Wyon reminds Mr.. Robert
son that his application Will fail TO carry life
nominations unless the calls due on application
and allotment are paid before the 1911 OF June
Then NJ. Robertson and Mr.. Wyon arrange
that MI. Robertson stall deposit securities in
stead o: the c2OOO Tho shares deposited were
worthless 10 the company The directors were
kent In Ignorance OF the application and allot-
mcEt. IN September the shares had gono up.
Mr.. Nyon enters the application rs made in
May. hut he docs not require the 81 OOO to no
paid. Thus II remains till il Is discovered by
the auditors nt the end 81 the year 1t is said,
OF what did Mr. Robertson rob the company =?
The answer is that he shut up 900 shares and
prevented their being sold at a premium. My
brother Ballantinc urged that MIR. Robertson
never realized upon the shares. Mr. Russell
answered that that was because he saw that the
shares were going up, and expected to make u
greater pryit. For what other purpose did MIR.
Robertson act as h. did? What was his mo-
tiveY Wns 1t a matter which ought to have
been done ns u WAS done. or was II "a matter
which ought 10 have been done openly If done
At These are the facts. and they speak for
As 10 the second charge, cannot help think
ing tha. iliS thrrc sut ordlnatss had the exam
that Mr., Robertson had had shares allotted with
out paving anything, ana they said. LET US do
knew ~ the resolution Of June 10. but they
said; II we antednte the applications for
" re- DO VII ha g NJ e won Esp Re @1ss1
that seemed easy but he could not enter the
anotmchts IN the proper place in order Of time,
because all nl.Otments 10 other persons had
been entered in the mean time. They 40 and
.eli their sharo,7i "S vcarrying liio nominations
that tho application had been antedntcd He
goce TO Mr. Robertson and tells him. Hero was
hcareot unmistakahl" fraud-l fictitious entry
to deceive their super.or- aud b"nrnt them
selves. Tho 700 -narcs vii. eh they thur pro
cured. tu the company would have produced
f70D on application and 600 ON nllotnIout
Ihey oDlaiu"d ne prrnpms which would have
gone into the ,Or"rs oi the company.
Now comes th' question. what was Mr. Rob.
erisun r duty in Disco. ring this fraud II lac
thought 10 wa an irrrruinrity Lr uiirht con.
done it b.t il he saw tnn, il was n fraud he
might take upnn himself to hush ~ IN. So far
from Il .hnun'ln, ms prn'eeults ne sNli u
nominations, hut will give you ms many nom
nations as You rrqnlr', hut ! must 10 shares
III the profits There wis some dispute as 10
what he was To share. but to my mind that docs
not matter so much. In order to conceal tho
10 participate ia the profits. ~ one can doubt
HAT this ls Improper conduct. Is II dishonesty 3.
What IL dishonesty II you divert money
which ought L. go into the pocket Of A. b.. ana
cause u TO 20 into your own pocket by any clan
destno contriyance. you ara guilty Of dishon-
Now as to the third charge. BY ono Of the mr.
ticlos II Is in the power OF the directors 10 in
calls on their shares by promising to pay then
interest Ihs IS common provision. But
what were the conditions on which that was to
be doneY The advance on which interest was
10 be paid was 10 be beyond the amount actually
called Tor II Is dihcult 10 imagine that any
bus ness man could suppose that that applied
10 shares on which no calls are made. II -. tho
SHAREHOLDER would get the interest in addition
rash 10 say that Mr.. Robertson must have
known that. he had no. claim to interest
whore man scli-intcrest is concerned which
tons. In 6oc"mHar or earlier Mr. RnLoI,nr6%n
goes 10 Mr. Wyon aud says. Hand mo check
Ter interest EPynhle on paid up shares Mr.
Is cyntunlly persuaded that Mr. Robertson is
entitled To- 1t. He then prepares check, enters
and makes out list n persons for whose ne
count it is drawn. Mr.. Robertson's name is
Comes balore Tho B"arI Mr. N tS nv" W., Mn n
largo amount. Mr. Mhiteey asks Mr. Wyon
as reason that il consists 81 many small Tens
many OF which viii have to DO paid los Post
DGica orders. Mr, Wyon said tina, tn interest
Tho directors say that their attention wns
never cnlcd % IT, AMI TINT they had no ilrR
lint ih that sum ~ c6ll WIS includ "a a sum n
a57j Tor Mr.. Robertson for interest Directly
they hevnme aware their lndignntlon WIS such
hcard. All WIS nay fnyo b"cn d@p31 Iy mr
Wyon' Ply what ought Mr. iob'lts,n 10 hayo
when hs arrived 40 the conclusion That h. WAS