Gruban v Booth
Encyclopedia
Gruban v Booth was a 1917 fraud case in England that generated significant publicity because the defendant, Frederick Handel Booth
, was a Member of Parliament. Gruban was a German-born businessman who ran several factories that made tools for manufacturing munitions for the First World War. In an effort to find money to expand his business he contacted a businessman and Member of Parliament named Frederick Handel Booth, who agreed to provide the necessary money. After stealing money Booth tricked Gruban into handing over the company and then had him interned
under war-time regulations to prevent the story coming out.
Gruban successfully appealed against his internment, and as soon as he was freed brought Booth to court. The case was so popular that the involved barrister
s found it physically difficult to get into the court each day due to the size of the crowds gathered outside. Although the barristers on both sides were noted for their skill the case went almost entirely one way, with the jury taking only ten minutes to find Booth guilty. This was one of the first noted cases of Patrick Hastings
, and his victory in it led to him applying to become a King's Counsel
.
John Gruban was a German-born businessman, originally named Johann Wilhelm Gruban, who had come to England in 1893 to work for an engineering company, Haigh and Company. By 1913 he had turned the business from an almost bankrupt company to a successful manufacturer of machine tools, and at the outbreak of the First World War it was one of the first companies to produce machine tools used to make munitions. This made Gruban a major player in a now-large market, and he attempted to raise £
5,000 to expand his business. On independent advice he contacted Frederick Handel Booth, a noted Liberal
Member of Parliament who was chairman of the Yorkshire Iron and Coal Company and had led the government inquiry into the Marconi scandal
. When Gruban contacted Booth, Booth told him that he could do "more for [your] company than any man in England", claiming that David Lloyd George
(at the time Minister of Munitions
) and many other important government officials were close friends. With £3,500 borrowed from his brother-in-law, Booth immediately invested in Gruban's company.
The sinking of the RMS Lusitania
in 1915 created a wave of anti-German sentiment, and Gruban worried that he would find it difficult to find government work because of his nationality and thick German accent. He again contacted Booth, who again claimed to be friends with David Lloyd George and his secretary, Christopher Addison
, and said that if Gruban put Booth on the Board of Directors
he could "do with the Ministry of Munitions what I like". Gruban immediately made Booth the chairman of his company, and over 3 months took £400 on expenses. He then claimed that this was not enough money for the work he did, and he should get a secret payment of 10% of the value of a contract known as the "Birmingham Contract". The contract was worth £6,000, and Booth wrote a memo saying that he should have £580 or £600. Gruban refused, and Booth threw the note in the wastepaper basket. From that point onwards Booth worked as hard as he could to undermine Gruban's position, while outwardly appearing to be his friend.
Over the next few months a series of complaints came from the Ministry of Munitions about Gruban's work and his German origins, ending in a written statement by David Lloyd George's private secretary that it was "undesirable that any person of recent German nationality or association should at the present time be connected in an important capacity with any company or firm engaged in the production of munitions of war". Booth showed this to Gruban and told him that the only way to save the company and prevent Gruban being interned
was for him to transfer the ownership of the company to Booth. Gruban did this, and Booth immediately "came out in his true colours", treating Gruban with contempt and refusing to help support his wife and family now that Gruban had no income. Eventually Booth wrote to the Ministry of Munitions saying that Gruban had "taken leave of his senses", and the Ministry had Gruban interned.
Gruban appealled against the internment order, and was called before a court consisting of Mr Justice Younger
and Mr Justice Sankey
. After reviewing the facts of the case and the stories of Gruban and Booth the judges ordered the immediate release of Gruban, and recommended that he seek legal advice to see if he could regain control of his company. After he was released Gruban found a solicitor
, W.J. Synott, who gave the case to Patrick Hastings
.
felt that their best chances lay in interviewing Christopher Addison
about his contact with Booth; as Addison was a government minister he could be relied on to tell the truth. The case of Gruban v Booth opened on 7 May 1917 at the King's Bench Division of the High Court of Justice
in front of Mr Justice Coleridge
. Patrick Hastings and Hubert Wallington represented Gruban, while Booth was represented by Rigby Swift
KC and Douglas Hogg
. The trial attracted such public interest that on the final day the barristers found it physically difficult to get through the crowds surrounding the Law Courts.
As counsel for the prosecution, Hastings was the first barrister to speak. In his opening speech to the jury he criticised Booth for loving money rather than his country, saying that one of the things which the English prided themselves on was fair play, and "no matter how loudly the defendant raises the cry of patriotism, I feel sure that your sense of fair play, gentlemen, will ensure a verdict that the defendant is unfit to sit in the House of Commons, as he has been guilty of fraud". Hastings then called Gruban to the witness stand, and asked him to tell the jury what had happened. Gruban described how Booth had claimed to have influence over David Lloyd George
. Booth was then cross-examined by Rigby Swift.
Booth was then called to the witness stand, and initially claimed that Gruban had claimed to be "a very powerful man" and that it had been a case of Gruban using his power to help Booth, not the other way around. He was still in the witness box when the court day ended, and the next morning it was announced that Christopher Addison
had come to the court. The judge allowed Addison to give his testimony before they continued with Booth, and during a cross-examination by Hastings Addison stated that he had not been advising Booth in any way, and that "to say that Gruban's only chance of escape from internment was to hand over his shares to Mr Booth was a lie".
The final witness was Handel Booth himself. Booth stated that he would never have asked for a ten-percent commission on the Birmingham contract, and that he had never claimed he could influence government ministers. Hastings showed the jury that both of these statements were lies, first by showing the piece of paper Booth had scribbled the "Birmingham contract" memo on and then by showing a telegram from Booth to Gruban in which Booth claimed that he "[had] already spoken to a Cabinet Minister and high official".
In his summing up Mr Justice Coleridge
was "on the whole unfavourable to Booth". He also pointed out that the German nationality of Gruban might prejudice the jury, and asked them to "be sure that you permit no prejudice on their hand to disturb the balance of the scales of justice". The jury decided the case in only ten minutes, finding Booth guilty and awarding Gruban £4,750.
Frederick Handel Booth
Frederick Handel Booth was a British politician, who served as a Liberal Member of Parliament for Pontefract from 1910 to 1918.He was born near Manchester in 1867, and attended the high school in Bolton le Moor....
, was a Member of Parliament. Gruban was a German-born businessman who ran several factories that made tools for manufacturing munitions for the First World War. In an effort to find money to expand his business he contacted a businessman and Member of Parliament named Frederick Handel Booth, who agreed to provide the necessary money. After stealing money Booth tricked Gruban into handing over the company and then had him interned
Internment
Internment is the imprisonment or confinement of people, commonly in large groups, without trial. The Oxford English Dictionary gives the meaning as: "The action of 'interning'; confinement within the limits of a country or place." Most modern usage is about individuals, and there is a distinction...
under war-time regulations to prevent the story coming out.
Gruban successfully appealed against his internment, and as soon as he was freed brought Booth to court. The case was so popular that the involved barrister
Barrister
A barrister is a member of one of the two classes of lawyer found in many common law jurisdictions with split legal professions. Barristers specialise in courtroom advocacy, drafting legal pleadings and giving expert legal opinions...
s found it physically difficult to get into the court each day due to the size of the crowds gathered outside. Although the barristers on both sides were noted for their skill the case went almost entirely one way, with the jury taking only ten minutes to find Booth guilty. This was one of the first noted cases of Patrick Hastings
Patrick Hastings
Sir Patrick Gardiner Hastings KC was a British barrister and politician noted for his long and highly successful career as a barrister and his short stint as Attorney General. He was educated at Charterhouse School until 1896, when his family moved to continental Europe...
, and his victory in it led to him applying to become a King's Counsel
Queen's Counsel
Queen's Counsel , known as King's Counsel during the reign of a male sovereign, are lawyers appointed by letters patent to be one of Her [or His] Majesty's Counsel learned in the law...
.
Background
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
5,000 to expand his business. On independent advice he contacted Frederick Handel Booth, a noted Liberal
Liberal Party (UK)
The Liberal Party was one of the two major political parties of the United Kingdom during the 19th and early 20th centuries. It was a third party of negligible importance throughout the latter half of the 20th Century, before merging with the Social Democratic Party in 1988 to form the present day...
Member of Parliament who was chairman of the Yorkshire Iron and Coal Company and had led the government inquiry into the Marconi scandal
Marconi scandal
The Marconi scandal was a British political scandal that broke in the summer of 1912. It centred on allegations that highly-placed members of the Liberal government, under H. H...
. When Gruban contacted Booth, Booth told him that he could do "more for [your] company than any man in England", claiming that David Lloyd George
David Lloyd George
David Lloyd George, 1st Earl Lloyd-George of Dwyfor OM, PC was a British Liberal politician and statesman...
(at the time Minister of Munitions
Minister of Munitions
The Minister of Munitions was a British government position created during the First World War to oversee and co-ordinate the production and distribution of munitions for the war effort...
) and many other important government officials were close friends. With £3,500 borrowed from his brother-in-law, Booth immediately invested in Gruban's company.
The sinking of the RMS Lusitania
RMS Lusitania
RMS Lusitania was a British ocean liner designed by Leonard Peskett and built by John Brown and Company of Clydebank, Scotland. The ship entered passenger service with the Cunard Line on 26 August 1907 and continued on the line's heavily-traveled passenger service between Liverpool, England and New...
in 1915 created a wave of anti-German sentiment, and Gruban worried that he would find it difficult to find government work because of his nationality and thick German accent. He again contacted Booth, who again claimed to be friends with David Lloyd George and his secretary, Christopher Addison
Christopher Addison, 1st Viscount Addison
Sir Christopher Addison, 1st Viscount Addison KG, PC was a British medical doctor and politician. By turns a liberal and a socialist, he served as Minister of Munitions during the first World War, and was later Minister of Health under David Lloyd George and Leader of the House of Lords under...
, and said that if Gruban put Booth on the Board of Directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
he could "do with the Ministry of Munitions what I like". Gruban immediately made Booth the chairman of his company, and over 3 months took £400 on expenses. He then claimed that this was not enough money for the work he did, and he should get a secret payment of 10% of the value of a contract known as the "Birmingham Contract". The contract was worth £6,000, and Booth wrote a memo saying that he should have £580 or £600. Gruban refused, and Booth threw the note in the wastepaper basket. From that point onwards Booth worked as hard as he could to undermine Gruban's position, while outwardly appearing to be his friend.
Over the next few months a series of complaints came from the Ministry of Munitions about Gruban's work and his German origins, ending in a written statement by David Lloyd George's private secretary that it was "undesirable that any person of recent German nationality or association should at the present time be connected in an important capacity with any company or firm engaged in the production of munitions of war". Booth showed this to Gruban and told him that the only way to save the company and prevent Gruban being interned
Internment
Internment is the imprisonment or confinement of people, commonly in large groups, without trial. The Oxford English Dictionary gives the meaning as: "The action of 'interning'; confinement within the limits of a country or place." Most modern usage is about individuals, and there is a distinction...
was for him to transfer the ownership of the company to Booth. Gruban did this, and Booth immediately "came out in his true colours", treating Gruban with contempt and refusing to help support his wife and family now that Gruban had no income. Eventually Booth wrote to the Ministry of Munitions saying that Gruban had "taken leave of his senses", and the Ministry had Gruban interned.
Gruban appealled against the internment order, and was called before a court consisting of Mr Justice Younger
Robert Younger, Baron Blanesburgh
Robert Younger, Baron Blanesburgh GBE, PC, QC was a Scottish barrister and judge.The son of James Younger and Janet McEwan, and younger brother of the 1st Viscount Younger of Leckie, he was educated at Edinburgh Academy and Balliol College, Oxford, where he graduated with a Bachelor of Arts in...
and Mr Justice Sankey
John Sankey, 1st Viscount Sankey
John Sankey, 1st Viscount Sankey GBE, KStJ, PC, KC was a prominent British lawyer, judge and Labour politician, famous for many of his judgments in the House of Lords...
. After reviewing the facts of the case and the stories of Gruban and Booth the judges ordered the immediate release of Gruban, and recommended that he seek legal advice to see if he could regain control of his company. After he was released Gruban found a solicitor
Solicitor
Solicitors are lawyers who traditionally deal with any legal matter including conducting proceedings in courts. In the United Kingdom, a few Australian states and the Republic of Ireland, the legal profession is split between solicitors and barristers , and a lawyer will usually only hold one title...
, W.J. Synott, who gave the case to Patrick Hastings
Patrick Hastings
Sir Patrick Gardiner Hastings KC was a British barrister and politician noted for his long and highly successful career as a barrister and his short stint as Attorney General. He was educated at Charterhouse School until 1896, when his family moved to continental Europe...
.
Trial
HastingsPatrick Hastings
Sir Patrick Gardiner Hastings KC was a British barrister and politician noted for his long and highly successful career as a barrister and his short stint as Attorney General. He was educated at Charterhouse School until 1896, when his family moved to continental Europe...
felt that their best chances lay in interviewing Christopher Addison
Christopher Addison, 1st Viscount Addison
Sir Christopher Addison, 1st Viscount Addison KG, PC was a British medical doctor and politician. By turns a liberal and a socialist, he served as Minister of Munitions during the first World War, and was later Minister of Health under David Lloyd George and Leader of the House of Lords under...
about his contact with Booth; as Addison was a government minister he could be relied on to tell the truth. The case of Gruban v Booth opened on 7 May 1917 at the King's Bench Division of the High Court of Justice
High Court of Justice
The High Court of Justice is, together with the Court of Appeal and the Crown Court, one of the Senior Courts of England and Wales...
in front of Mr Justice Coleridge
Bernard Coleridge, 2nd Baron Coleridge
Bernard John Seymour Coleridge, 2nd Baron Coleridge QC was a British lawyer and Liberal politician who sat in the House of Commons from 1885 until 1894 when he inherited his peerage....
. Patrick Hastings and Hubert Wallington represented Gruban, while Booth was represented by Rigby Swift
Rigby Swift
Sir Rigby Philip Watson Swift KC was a British barrister, Member of Parliament and judge. Born into a family of solicitors and barristers, Swift was educated at Parkfield School before taking up a place in his father's chambers and at the same time studying for his LLB at the University of London...
KC and Douglas Hogg
Douglas Hogg, 1st Viscount Hailsham
Douglas McGarel Hogg, 1st Viscount Hailsham PC was a British lawyer and Conservative politician.-Background:...
. The trial attracted such public interest that on the final day the barristers found it physically difficult to get through the crowds surrounding the Law Courts.
As counsel for the prosecution, Hastings was the first barrister to speak. In his opening speech to the jury he criticised Booth for loving money rather than his country, saying that one of the things which the English prided themselves on was fair play, and "no matter how loudly the defendant raises the cry of patriotism, I feel sure that your sense of fair play, gentlemen, will ensure a verdict that the defendant is unfit to sit in the House of Commons, as he has been guilty of fraud". Hastings then called Gruban to the witness stand, and asked him to tell the jury what had happened. Gruban described how Booth had claimed to have influence over David Lloyd George
David Lloyd George
David Lloyd George, 1st Earl Lloyd-George of Dwyfor OM, PC was a British Liberal politician and statesman...
. Booth was then cross-examined by Rigby Swift.
Booth was then called to the witness stand, and initially claimed that Gruban had claimed to be "a very powerful man" and that it had been a case of Gruban using his power to help Booth, not the other way around. He was still in the witness box when the court day ended, and the next morning it was announced that Christopher Addison
Christopher Addison, 1st Viscount Addison
Sir Christopher Addison, 1st Viscount Addison KG, PC was a British medical doctor and politician. By turns a liberal and a socialist, he served as Minister of Munitions during the first World War, and was later Minister of Health under David Lloyd George and Leader of the House of Lords under...
had come to the court. The judge allowed Addison to give his testimony before they continued with Booth, and during a cross-examination by Hastings Addison stated that he had not been advising Booth in any way, and that "to say that Gruban's only chance of escape from internment was to hand over his shares to Mr Booth was a lie".
The final witness was Handel Booth himself. Booth stated that he would never have asked for a ten-percent commission on the Birmingham contract, and that he had never claimed he could influence government ministers. Hastings showed the jury that both of these statements were lies, first by showing the piece of paper Booth had scribbled the "Birmingham contract" memo on and then by showing a telegram from Booth to Gruban in which Booth claimed that he "[had] already spoken to a Cabinet Minister and high official".
In his summing up Mr Justice Coleridge
Bernard Coleridge, 2nd Baron Coleridge
Bernard John Seymour Coleridge, 2nd Baron Coleridge QC was a British lawyer and Liberal politician who sat in the House of Commons from 1885 until 1894 when he inherited his peerage....
was "on the whole unfavourable to Booth". He also pointed out that the German nationality of Gruban might prejudice the jury, and asked them to "be sure that you permit no prejudice on their hand to disturb the balance of the scales of justice". The jury decided the case in only ten minutes, finding Booth guilty and awarding Gruban £4,750.