Monday, Dec. 20, 1926

Costly Case

COMMONWEALTH (British Commonwealth of Nations)

The -L-1,200,000 ($6,000,000) suit in Chancery over the estate of the late Lord Northcliffe (TIME, Dec. 13) piled up some -L-8,000 ($39,000) in counsel fees last week, after only eight days of litigation.

The plaintiff, Miss Louise Owen, a dark-eyed graceful woman, for 20 years Lord Northcliffe's secretary, made sensational charges against his brother, Lord Rothermere, who has succeeded him as the great overlord of the British press. Miss Owen charged that Lord Rothermere, as an executor of the Northcliffe estate, virtually sold to himself control of the Daily Mail Trust, in 1922, at four pounds a share, whereas the shares were allegedly worth seven pounds. She asked, as one of the Northcliffe heirs, that this sale be now set aside, a step which would unbalance the whole newspaper structure of England.

Counsel for Lord Rothermere sought to show last week that his great business acumen had caused the value of the shares to spring from -L-1,600,000 to some -L-2,800,000 within six months. On this point Horace Imber, advertising manager of the Daily Mail from 1912 to 1921 testified instructively: "Lord Northcliffe had the unbusinesslike policy of running a newspaper for the sake of news and not primarily for what he could gain from advertisers.... He maintained a fixed subordination of advertising space to news space.... When Lord Rothermere took control the space given to advertising was increased and much news was crowded out.... That was business. I do not echo Lord Rothermere's admirers in calling it genius...."

Miss Owen testified surprisingly as follows:

"I was devoted to Lord Northcliffe.... I mothered him. I gave him advice when he needed it, and he gave me leave to pull him up and prevent his making a fool of himself.... I did that several times....

"Finally I heard that he was doing very queer things. They seemed to me a sign that his brain was getting weak.... I wrote him a letter, to bring him to his senses. After that I never saw him again, but there was no quarrel. He often sent me presents....

"It is true that I am a spiritualist. (Holding up a silver cross) I claim to be in communication with Lord Northcliffe, as I am with my father and mother. They have 'gone over,' but they are looking after me...."

After testimony for the plaintiff was complete Miss Owen caused a sensation by suddenly withdrawing all her charges, allegedly as the result of a quiet settlement out of court by agents of Lord Rothermere.

"Bad for business," may have been the comment of Lord Rothermere last week when the Commons passed a bill forbidding the publication of evidence offered in divorce trials. Since the Rothermere papers have fattened on such fare his "genius" must provide a substitute.