Owen Cosby Philipps, 1st Baron Kylsant
Encyclopedia
Owen Cosby Philipps, 1st Baron Kylsant (25 March 1863 – 5 June 1937) was a British businessman and politician, later jailed for producing a document with intent to deceive.
, and his wife the Hon. Mary, daughter of the Hon. Reverend Samuel Best. Educated at Newton College, Newton Abbott in Devon he became an apprentice with a Newcastle-on-Tyne shipping firm, Dent & Co, in 1880 and upon completion of his apprenticeship he moved to the Glasgow shipping firm Allan & Gow in 1886.
Philipps set up his own shipping firm Philipps & Co in 1888, bought his first ship in 1889 and by the end of the nineteenth century the two brothers owned two shipping lines; King Line Ltd and the Scottish Steamship Company, a finance company; the London Maritime Investment Company, and the London and Thames Haven Petroleum Wharf. Taking advantage of a low share price the brothers acquired shares in the Royal Mail Steam Packet Company
and by 1902 Owen had become chairman and managing director of the line. Over the next twenty years Philipps and the Royal Mail Steam Packet Company acquired a controlling interest in over another twenty companies including names such as the Union-Castle Line
and the Pacific Steam Navigation Company
. Acquisitions continued culminating in the purchase of the White Star
in 1927.
Philipps had a reputation for acting unilaterally without consulting board members and being an autocrat, whilst the complex share structure of the firms within the Royal Mail Steam Packet Company group allowed Phillipps continued control of the whole group and to hide trading losses in individual firms by moving reserves around. In 1924 Phillipps also becamse chairman of Harland and Wolff
, the Belfast shipbuilders.
, the application was refused and as a result the group defaulted on part of the next repayment. Much of the groups finances were based on Debenture Stock paying fixed interest at 5% and the main trustee of this stock was Philipp's eldest brother, Viscount St Davids, who was unhappy with the way debenture stock was being issued, especially a £2,000,000 issue in 1928. St Davids made his concerns public and the stock market values of the whole group declined sharply. Worried by these revelations the government, fearing an economic crisis, appointed the accountant, William McLintock
to investigate the group finances. His report issued in early 1930 revealed that Royal Mail Steam Packet Company had liabilities in excess of £10,000,000. This was enough for the banks to act and much of Philipps' powers were removed to trustees apppointed by the banks, although Philipps remained chairman until November 1930. In February 1931 Philipps and his wife went to South Africa on holiday and in his absence McLintock revealed that the Royal Mail Steam Packet group had been paying dividends to stockholders despite trading at a loss for several years. McLintock did not report this activity as fraudulent although politicians used the term when the matter was discussed in the House of Commons.
On his return from holiday Philipps was arrested and charged with making false statements with regard to the companies accounts for 1926 and 1927 contrary to section 84 of the Larceny Act 1861
. The company auditor, Harold John Morland, was charged with aiding and abetting
the same offences. Philipps was also charged with issuing a document (the prospectus issued for the 1928 debenture stock issue) with intent to deceive contrary to section 84 of the Larceny Act 1861. Both men were committed for trial at the Old Bailey
.
The trial took place in July 1931 and lasted 9 days and was presided over by Mr Justice Wright
. Both men pleaded not guilty to all the charges, but at the end of the trial Philipps was found guilty of the final charge of issuing a document with intent to deceive, both men were found not guilty of the first two charges. Morland was discharged and Philipps was sentenced to 12 months imprisonment
. After one night in prison he was released on bail
pending an appeal
against the conviction. The appeal was heard in November 1931 and Philipps' appeal against the conviction and the sentence were dismissed and he subsequently served ten months in Wormwood Scrubs
prison before being released in August 1932.
as a Liberal
in 1906
. Relected at the General Election in January 1910 he declined to stand again at the second general election in December 1910.
He later left the Liberal Party and joined the Conservative Party
being elected unopposed as the MP for City of Chester at a by-election
in 1916. Re-elected at the 1918 General Election
he served until 1922, but did not stand again.
and became a Deputy Lieutenant
for Pembrokeshire in 1917, and Lord Lieutenant of Haverfordwest
in 1924. In 1909, Philipps was invested as a Knight Commander
of the Order of St Michael and St George
(KCMG), later raised to Knight Grand Cross
(GCMG) in 1918.
In 1912 he was invested as a Knight of Grace of the Order of Saint John of Jerusalem
and raised to a Knight of Justice in 1916.
On 14 February 1923, he was elevated to the peerage as Baron Kylsant, of Carmarthen
in the County of Carmarthen and of Amroth in the County of Pembroke.
Following his conviction he resigned all his knighthoods and lieutenancys.
Background
Philipps was the third of five sons of the Reverend Sir James Erasmus Philipps, 12th Baronet, of Picton CastlePicton Castle
Picton Castle is a medieval castle near Haverfordwest in Pembrokeshire, Wales. Originally built at the end of the 13th century by Sir John Wogan and is still inhabited by his descendants, the Philipps family ....
, and his wife the Hon. Mary, daughter of the Hon. Reverend Samuel Best. Educated at Newton College, Newton Abbott in Devon he became an apprentice with a Newcastle-on-Tyne shipping firm, Dent & Co, in 1880 and upon completion of his apprenticeship he moved to the Glasgow shipping firm Allan & Gow in 1886.
Shipping career
With financial assistance from his eldest brother John Philipps, 1st Viscount St DavidsJohn Philipps, 1st Viscount St Davids
John Wynford Philipps, 1st Viscount St Davids PC was a British peer and former Liberal Member of Parliament for Mid Lanarkshire 1888–1894 and Pembrokeshire 1898–1908. He was educated at Felsted School....
Philipps set up his own shipping firm Philipps & Co in 1888, bought his first ship in 1889 and by the end of the nineteenth century the two brothers owned two shipping lines; King Line Ltd and the Scottish Steamship Company, a finance company; the London Maritime Investment Company, and the London and Thames Haven Petroleum Wharf. Taking advantage of a low share price the brothers acquired shares in the Royal Mail Steam Packet Company
Royal Mail Steam Packet Company
The Royal Mail Steam Packet Company was a British shipping company founded in London in 1839 by Scot James Macqueen. After good and bad times it became the largest shipping group in the world in 1927 when it took over the White Star Line....
and by 1902 Owen had become chairman and managing director of the line. Over the next twenty years Philipps and the Royal Mail Steam Packet Company acquired a controlling interest in over another twenty companies including names such as the Union-Castle Line
Union-Castle Line
The Union-Castle Line was a prominent British shipping line that operated a fleet of passenger liners and cargo ships between Europe and Africa from 1900 to 1977. It was formed from the merger of the Union Line and Castle Shipping Line...
and the Pacific Steam Navigation Company
Pacific Steam Navigation Company
The Pacific Steam Navigation Company was a commercial shipping company that operated in the Pacific coast of South America, and was the first to use steam ships for commercial traffic in the Pacific Ocean.-History:...
. Acquisitions continued culminating in the purchase of the White Star
White Star Line
The Oceanic Steam Navigation Company or White Star Line of Boston Packets, more commonly known as the White Star Line, was a prominent British shipping company, today most famous for its ill-fated vessel, the RMS Titanic, and the World War I loss of Titanics sister ship Britannic...
in 1927.
Philipps had a reputation for acting unilaterally without consulting board members and being an autocrat, whilst the complex share structure of the firms within the Royal Mail Steam Packet Company group allowed Phillipps continued control of the whole group and to hide trading losses in individual firms by moving reserves around. In 1924 Phillipps also becamse chairman of Harland and Wolff
Harland and Wolff
Harland and Wolff Heavy Industries is a Northern Irish heavy industrial company, specialising in shipbuilding and offshore construction, located in Belfast, Northern Ireland....
, the Belfast shipbuilders.
Downfall and trial
In 1928 Philipps applied to extend the government guarantee on a loan from the Midland BankMidland Bank
Midland Bank Plc was one of the Big Four banking groups in the United Kingdom for most of the 20th century. It is now part of HSBC. The bank was founded as the Birmingham and Midland Bank in Union Street, Birmingham, England in August 1836...
, the application was refused and as a result the group defaulted on part of the next repayment. Much of the groups finances were based on Debenture Stock paying fixed interest at 5% and the main trustee of this stock was Philipp's eldest brother, Viscount St Davids, who was unhappy with the way debenture stock was being issued, especially a £2,000,000 issue in 1928. St Davids made his concerns public and the stock market values of the whole group declined sharply. Worried by these revelations the government, fearing an economic crisis, appointed the accountant, William McLintock
McLintock Baronets
The McLintock Baronetcy, of Sanquhar in the County of Dumfries, is a title in the Baronetage of the United Kingdom. It was created on 19 January 1934 for the accountant William McLintock...
to investigate the group finances. His report issued in early 1930 revealed that Royal Mail Steam Packet Company had liabilities in excess of £10,000,000. This was enough for the banks to act and much of Philipps' powers were removed to trustees apppointed by the banks, although Philipps remained chairman until November 1930. In February 1931 Philipps and his wife went to South Africa on holiday and in his absence McLintock revealed that the Royal Mail Steam Packet group had been paying dividends to stockholders despite trading at a loss for several years. McLintock did not report this activity as fraudulent although politicians used the term when the matter was discussed in the House of Commons.
On his return from holiday Philipps was arrested and charged with making false statements with regard to the companies accounts for 1926 and 1927 contrary to section 84 of the Larceny Act 1861
Larceny Act 1861
The Larceny Act 1861 was an Act of the Parliament of the United Kingdom of Great Britain and Ireland . It consolidated provisions related to larceny and similar offences from a number of earlier statutes into a single Act...
. The company auditor, Harold John Morland, was charged with aiding and abetting
Aiding and abetting
Criminal=Aiding and abetting is an additional provision in United States criminal law, for situations where it cannot be shown the party personally carried out the criminal offense, but where another person may have carried out the illegal act as an agent of the charged, working together with or...
the same offences. Philipps was also charged with issuing a document (the prospectus issued for the 1928 debenture stock issue) with intent to deceive contrary to section 84 of the Larceny Act 1861. Both men were committed for trial at the Old Bailey
Old Bailey
The Central Criminal Court in England and Wales, commonly known as the Old Bailey from the street in which it stands, is a court building in central London, one of a number of buildings housing the Crown Court...
.
The trial took place in July 1931 and lasted 9 days and was presided over by Mr Justice Wright
Robert Wright, Baron Wright
Robert Alderson Wright, Baron Wright, GCMG, PC was a British judge.On 11 April 1932, he was appointed Lord of Appeal in Ordinary and was created additionally a life peer with the title Baron Wright, of Durley in the County of Wiltshire, however resgined as Lord of Appeal already in 1935...
. Both men pleaded not guilty to all the charges, but at the end of the trial Philipps was found guilty of the final charge of issuing a document with intent to deceive, both men were found not guilty of the first two charges. Morland was discharged and Philipps was sentenced to 12 months imprisonment
Imprisonment
Imprisonment is a legal term.The book Termes de la Ley contains the following definition:This passage was approved by Atkin and Duke LJJ in Meering v Grahame White Aviation Co....
. After one night in prison he was released on bail
Bail
Traditionally, bail is some form of property deposited or pledged to a court to persuade it to release a suspect from jail, on the understanding that the suspect will return for trial or forfeit the bail...
pending an appeal
Appeal
An appeal is a petition for review of a case that has been decided by a court of law. The petition is made to a higher court for the purpose of overturning the lower court's decision....
against the conviction. The appeal was heard in November 1931 and Philipps' appeal against the conviction and the sentence were dismissed and he subsequently served ten months in Wormwood Scrubs
Wormwood Scrubs (HM Prison)
HM Prison Wormwood Scrubs is a Category B men's prison, located in the Wormwood Scrubs area of the London Borough of Hammersmith and Fulham, in inner west London, England. The prison is operated by Her Majesty's Prison Service....
prison before being released in August 1932.
Political career
Since his time in Scotland, Philipps had been interested in politics and after two unsucessful attempts to stand for Parliament he was elected as Member of Parliament for Pembroke and HaverfordwestPembroke and Haverfordwest (UK Parliament constituency)
Pembroke and Haverfordwest was a parliamentary constituency centred on the towns of Pembroke and Haverfordwest in West Wales. It returned one Member of Parliament to the House of Commons of the Parliament of the United Kingdom, elected by the first past the post system.- History :The constituency...
as a 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...
in 1906
United Kingdom general election, 1906
-Seats summary:-See also:*MPs elected in the United Kingdom general election, 1906*The Parliamentary Franchise in the United Kingdom 1885-1918-External links:***-References:*F. W. S. Craig, British Electoral Facts: 1832-1987**...
. Relected at the General Election in January 1910 he declined to stand again at the second general election in December 1910.
He later left the Liberal Party and joined the Conservative Party
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
being elected unopposed as the MP for City of Chester at a by-election
By-election
A by-election is an election held to fill a political office that has become vacant between regularly scheduled elections....
in 1916. Re-elected at the 1918 General Election
United Kingdom general election, 1918
The United Kingdom general election of 1918 was the first to be held after the Representation of the People Act 1918, which meant it was the first United Kingdom general election in which nearly all adult men and some women could vote. Polling was held on 14 December 1918, although the count did...
he served until 1922, but did not stand again.
Other offices and honours
In 1904, Philipps was High Sheriff of PembrokeshireHigh Sheriff of Pembrokeshire
This is a list of High Sheriffs of Pembrokeshire. Under the Local Government Act 1888, an elected county council was set up to take over the functions of the Pembrokeshire Quarter Sessions...
and became a Deputy Lieutenant
Deputy Lieutenant
In the United Kingdom, a Deputy Lieutenant is one of several deputies to the Lord Lieutenant of a lieutenancy area; an English ceremonial county, Welsh preserved county, Scottish lieutenancy area, or Northern Irish county borough or county....
for Pembrokeshire in 1917, and Lord Lieutenant of Haverfordwest
Lord Lieutenant of Haverfordwest
This is a list of people who served as Lord Lieutenant of Haverfordwest. The county corporate of Haverfordwest was usually under the jurisdiction of the Lord Lieutenant of Pembrokeshire, but it had its own Lord Lieutenant and Custos Rotulorum from 1761 until 1931.-Lord Lieutenants of Haverfordwest...
in 1924. In 1909, Philipps was invested as a Knight Commander
Knight Commander
Knight Commander is the second most senior grade of seven British orders of chivalry, three of which are dormant . The rank entails admission into knighthood, allowing the recipient to use the title 'Sir' or 'Dame' before his or her name...
of the Order of St Michael and St George
Order of St Michael and St George
The Most Distinguished Order of Saint Michael and Saint George is an order of chivalry founded on 28 April 1818 by George, Prince Regent, later George IV of the United Kingdom, while he was acting as Prince Regent for his father, George III....
(KCMG), later raised to Knight Grand Cross
Knight Grand Cross
Knight Grand Cross is the most senior grade of seven British orders of chivalry, three of which are obsolete. The rank entails admission into knighthood, allowing the recipient to use the title 'Sir' or 'Dame' before his or her name...
(GCMG) in 1918.
In 1912 he was invested as a Knight of Grace of the Order of Saint John of Jerusalem
Venerable Order of Saint John
The Most Venerable Order of the Hospital of Saint John of Jerusalem , is a royal order of chivalry established in 1831 and found today throughout the Commonwealth of Nations, Hong Kong, Ireland and the United States of America, with the world-wide mission "to prevent and relieve sickness and...
and raised to a Knight of Justice in 1916.
On 14 February 1923, he was elevated to the peerage as Baron Kylsant, of Carmarthen
Carmarthen
Carmarthen is a community in, and the county town of, Carmarthenshire, Wales. It is sited on the River Towy north of its mouth at Carmarthen Bay. In 2001, the population was 14,648....
in the County of Carmarthen and of Amroth in the County of Pembroke.
Following his conviction he resigned all his knighthoods and lieutenancys.