NORTHCLIFFE MILLIONS.

Manawatu Standard, Volume XLVII, Issue 9, 8 December 1926, Page 10

NORTHCLIFFE MILLIONS.

LEGATEES’ SUIT. CHARGING TRUSTEE AVITH FRAUD. LONDON, Nov. 29. Alleging that it was a story of unsavoury newspaper finance, Mr AV. A. Jowitt, K.C., opened a complicated action relating to the Northcliffe estate, in which Miss Owen, the late Lord Nortlicliffe’s secretary, is among the legatees who are seeking a declaration that an agreement regarding the sale of Lord Northcliife’s 460,000 shares in Associated Newspapers, Ltd., between Sir George Sutton, the administrator of the estate, and Lord Rothermere, Lord Northcliffe’s brother, now in control of the papers, was not binding on the legatees; that certain shares and property included in the agreement ought to form part of the residuary estate; and that, despite the Probate Court’s decision, Sir George Sutton is liable to account for sums in excess of £160,000 paid for the shares. Sixteen counsel, including eight leading King’s Counsel, represent various newspaper companies, and others concerned. NO SALE TO FOREIGNERS. Mr Jowitt recalled Lord Northcliffe’s references in his will to the inadvisability of selling Associated Newspapers and the Anglo-Newfound-land Company’s shares to foreigners on the grounds of patriotism. He accordingly directed his executors to allow Lord Rothermere to decide who the purchaser should be. Lord Rothermere bought the shares at 80s each after Sir Andrew Caird and Mr Thomas Marlowe, directors, had sugested that they were worth 40s. Sir George Sutton did not endeavto find another customer. The Daily Mail Trust was then formed to take over the shales, with a capital of £1,600,000. Great public interest resulted in the over-subscription of the capital to the extent of nearly £50,000,000. Lord Rothermere claimed in 1923 that, owing to dividends and bonus, the .shares were worth £5,000,000.., j Counsel for the Attorney-General intimated that the Crown considered that the shares were worth considerably moro than was paid for them. CONTENDING COUNSEL. , Mr Jowitt said that Lord Rothermere and Sir George Sutto’n had failed to deal honestly and reasonably. Mr F. R. Maugham, K.C., representing Sir George Sutton: 1 object to the use of such words. Mr Jowitt added that the purchase price was not fair to the legatees. Sir George Sutton had entered into the agreement recklessly, and he had been unduly influenced by Lord Rothermere. Further, Sir George Sutton, for the purpose of securing the Probate Court’s agreement to the purchase, made misleading statements. Mr Justice Asbury: Isn’t this a charge of fraud? Mr Jowitt: AVe say that it is dishonest. I do not distinguish between dishonesty and fraud. Miss Owen has a life interest in the income from one-twohundredth part of Lord Nortlicliffo’s residuary estate. iMss Owen, who was closely -associated with Lord Northcliffe for years, declares that she has received spirit messages from him, including directions for the future conduct of his newspapers.