Horatio Bottomley
Horatio William Bottomley was an English financier, journalist, editor, newspaper proprietor, swindler, and Member of Parliament. He is best known for his editorship of the popular magazine John Bull, and for his nationalistic oratory during the First World War. His career came to a sudden end when, in 1922, he was convicted of fraud and sentenced to seven years' imprisonment.
Bottomley spent five years in an orphanage before beginning his career, aged 14, as an errand boy. Subsequent experience as a solicitor's clerk gave him a useful knowledge of English law, which he later put to effective use in his court appearances. After working as a shorthand writer and court reporter, at 24 he founded his own publishing company, which launched numerous magazines and papers, including, in 1888, the Financial Times. He overreached with an ambitious public flotation of his company, which led to his first arraignment on fraud charges in 1893. Despite evidence of malpractice, Bottomley, who defended himself, was acquitted. He subsequently amassed a fortune as a promoter of shares in gold-mining companies.
In 1906 Bottomley entered parliament as the Liberal Party member for Hackney South. In the same year, he founded the popular magazine John Bull, which became a platform for Bottomley's trenchant populist views. Financial extravagance and mismanagement continued to blight his career, and in 1912 he had to resign from parliament after being declared bankrupt. The outbreak of war in 1914 revived his fortunes; as a journalist and orator, Bottomley became a leading propagandist for the war effort, addressing well over 300 public meetings. His influence was such that it was widely expected that he would enter the War Cabinet, although he received no such offer.
In 1918, having been discharged from bankruptcy, Bottomley re-entered parliament as an Independent member. In the following year, he launched his fraudulent "Victory Bonds" scheme which, when exposed, led to his conviction, imprisonment and expulsion from parliament. Released in 1927, he attempted unsuccessfully to relaunch his business career and eked out a living by lecturing and appearances in music halls. His final years before his death in 1933 were spent in poverty.
Life
Family background and childhood
Bottomley was born on 23 March 1860, at 16 Saint Peter's Street, Bethnal Green in London, the second child and only son of William King Bottomley, a tailor's cutter, and Elizabeth, née Holyoake. William Bottomley's background is obscure, but Elizabeth belonged to a family of well-known radical agitators—her brother George Jacob Holyoake was a founder of the Secularist movement and in later life a leading figure in the growth of Co-operative societies.Among Holyoake's close associates was Charles Bradlaugh, who founded the National Republican League and became a controversial Member of Parliament. A longstanding friendship between Bradlaugh and Elizabeth Holyoake led to rumours that he, not William Bottomley, was Horatio's biological father—a suggestion that Bottomley, in later life, was prone to encourage. The evidence is circumstantial, mainly based on the marked facial resemblance between Bradlaugh and Bottomley.
William Bottomley died in 1864 and Elizabeth a year later. Horatio and his elder sister, Florence, were initially looked after by their uncle William Holyoake, an artist living in the London district of Marylebone. After a year they were boarded out to foster-parents, at their uncle George Jacob's expense. This arrangement lasted until 1869 when Florence was formally adopted by her foster-family. At this point Holyoake felt unable to continue supporting Horatio financially, and arranged for him to be admitted to Josiah Mason's orphanage in Erdington, Birmingham. This was Horatio's home for the following five years. Some biographers have emphasised the cruelty and humiliation of his time there; while discipline was certainly harsh, Horatio received a useful basic education, and won prizes for sporting activities. In later life he showed no resentment towards the institution, which he often visited, telling the children that "any success I have achieved in life started at this place."
In 1874, when Horatio was 14 and due to leave the orphanage, he ran away without waiting for the formalities. His aunt Caroline Praill—his mother's sister—who lived in nearby Edgbaston, gave him a home, while he worked as an errand boy in a Birmingham building firm. This arrangement lasted only a few months before Horatio, impatient to be reunited with his sister from whom he had been separated for six years, went to London where he began an apprenticeship with a wood engraver.
Early career
First steps
Bottomley soon gave up his apprenticeship, and after a series of humdrum jobs found work in the offices of a City firm of solicitors. Here he picked up a working knowledge of English legal procedures and was soon carrying a workload far exceeding the normal duties of an office junior. With his uncle's encouragement he learned shorthand at Pitman's College, a skill which helped him to get a better job with a larger legal firm. He also came into closer contact with the Holyoake circle, where he acted as an unpaid assistant in the group's publishing activities. He met Bradlaugh, who encouraged the young man to read more widely and introduced him to the ideas of Charles Darwin, Thomas Huxley and John Stuart Mill. Bottomley was strongly influenced by Bradlaugh, whom he considered his political and spiritual mentor.As Bottomley emerged from adolescence to maturity he began to show signs of the characteristics that would be much in evidence in his later life: greed for fleshly pleasures, a thirst for fame, spontaneous generosity, combined with a charm that, according to his biographer Julian Symons, could "tempt the banknotes out of men's pockets".
In 1880 Bottomley married Eliza Norton, the daughter of a debt collector. Bottomley's biographers have tended to regard this early, unambitious marriage as a mistake on his part; she was not equipped, intellectually or socially, to help him advance in the world. They had a daughter, Florence, who married firstly American millionaire Jefferson Davis Cohn, and secondly successful South African planter Gilbert Moreland. In the year of his marriage, Bottomley left his job to become a full-time shorthand writer for Walpole's, a firm that provided recording and transcription services for the law courts. His competence impressed his employers sufficiently for them, in 1883, to offer him a partnership, and the firm became Walpole and Bottomley.
Publishing entrepreneur
Bottomley's association with Bradlaugh had awakened his interests in publishing and politics, and in 1884 he launched his first entrepreneurial venture, a magazine called the Hackney Hansard. This journal recorded the business of Hackney's local "parliament"—essentially a debating society that mirrored the proceedings at Westminster. Advertisements from local tradesmen kept the paper mildly profitable. Bottomley produced a sister-paper, the Battersea Hansard, covering that borough's local parliament, before merging the two into The Debater.In 1885 he formed the Catherine Street Publishing Association and, using borrowed capital, acquired or started several magazines and papers. These included, among others, the Municipal Review, a prestigious local government publication; Youth, a boys' paper on which Alfred Harmsworth, the future press magnate Lord Northcliffe, worked as a sub-editor; and the Financial Times. The last-named was set up to rival the Financial News, London's first specialist business paper, which had been founded in 1884 by Harry Marks, a former sewing-machine salesman. In 1886 Bottomley's company acquired its own printing works through a merger with the printing firm of MacRae and Co., and after the absorption of another advertising and printing firm, became MacRae, Curtice and Company.
At the age of 26, Bottomley became the company's chairman. His advance in the business world was attracting wider notice, and in 1887 he was invited by the Liberal Party in Hornsey to be their candidate in a parliamentary by-election. He accepted, and although defeated by Henry Stephens, the ink magnate, fought a strong campaign which won him a congratulatory letter from William Gladstone. His business affairs were proceeding less serenely; he quarrelled with his partner Douglas MacRae, and the two decided to separate. Bottomley described the "Quixotic impulse" that led him to let MacRae divide the assets: "He was a printer, and I was a journalist—but he took the papers and left me the printing works".
Hansard Publishing Union
Undismayed by the loss of his papers, Bottomley embarked on an ambitious expansion scheme. On the basis of a lucrative contract to print the Hansard reports of debates in the Westminster parliament, at the beginning of 1889 he founded the Hansard Publishing Union Limited, floated on the London Stock Exchange with a capital of £500,000. Bottomley boosted the company's credentials by persuading several notable City figures to join the company's board of directors. These included Sir Henry Isaacs, the Lord Mayor-elect of London, Coleridge Kennard, co-founder of the London Evening News, and Sir Roper Lethbridge, the Conservative MP for Kensington North.This board approved the purchase by Bottomley of several printing businesses—he used intermediaries to disguise his considerable personal profits from these transactions. He also persuaded the board to give him £75,000 as a down payment for some publishing firms in Austria for which he was negotiating, although the firms were not acquired. These outgoings and other expenses absorbed the Union's capital, and with few significant revenue streams it quickly ran out of money. Nonetheless, without any statement of accounts, in July 1890 Bottomley announced a profit for the year of £40,877 and declared a dividend of eight percent.
The funds for the dividend payment were raised by a debenture of £50,000. By the end of 1890, many City figures were suspicious of the Hansard Union, and were calling it "Bottomley's swindle". Despite Bottomley's outward optimism, in December 1890 the company defaulted on the payment of debenture interest and in May 1891, amid growing rumours of insolvency, the debenture holders petitioned for the company's compulsory winding-up. In the same month Bottomley, who had taken at least £100,000 from the company, filed a petition for bankruptcy. Under examination by the Official Receiver, he could not say where the money had gone and professed total ignorance of the company's book-keeping. After further enquiries, the Board of Trade instituted prosecutions for fraud against Bottomley, Isaacs and two others.
The trial began in the High Court of Justice on 30 January 1893, before Sir Henry Hawkins; Bottomley conducted his own defence. To most observers the case against him seemed impregnable. It was established that, through his nominees, Bottomley had repeatedly bought companies for far less than the prices approved by the Hansard Union directors, and had pocketed the difference. Bottomley did not deny this, insisting that use of nominees was an accepted commercial practice and that his actual profits had been much smaller than reported; his expenses, he said, had been enormous.
He was helped in his case by the slackness with which the prosecution presented its evidence, and their failure to call key witnesses. He was further helped by the indulgence which Hawkins showed him, and by his own convincing oratory. The essence of his argument was that he was the victim of machinations by the Official Receiver and the Debenture Corporation, who had been determined to win prestige by bringing Bottomley down and wrecking his company. On 26 April, after Hawkins had summed up massively in his favour, Bottomley was acquitted, along with the other defendants.