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The trial of Lord Kylsant in 1931 marked a turning-point in the history of company finance. The Kylsant case cannot be understood unless the financial background of 1928-31 is properly envisaged.
After the boom of the former year, crashes and crises were many, ranging from the conviction of Brandreth of the "Ner-Sag" companies to the frauds of Clarence Hatry; but the Royal Mail Case assumes a greater importance to investors from the fact that those charged were felt to be not rogues but honest men.