Mr Houlder did not seriously consider the proposition, but, having made up his mind what to do, told the defendant he would have to consult his solicitors, and mentioned the existence of the proclamation which he assumed would prevent them from carrying out the transaction. Defendant replied to the effect that his employers had communicated with the German Foreign Office--as they had no proclamation--and had received permission to carry out the transaction. He handed Mr Houlder a bundle of documents in German, which showed that the defendant's employers in Hamburg, before ever they attempted to put this transaction in form, obtained leave from their own authorities, to whom they stated their own frank view-point with regard to the matter. It was set out that monetary benefit to a certain amount would accrue to the Hamburg company as a result of the transaction, and that the vessels were all old freight steamers, of no possible use to the German Navy--neither were they fit for transport purposes. The Berlin Secretary of State for Home Affairs replied that no objection would be taken to the transaction. Mr Houlder communicated with the Admiralty instead of with his solicitors, and in the meantime the defendant went to a firm of marine insurance agents and made a similar proposal--this time to the extent of about 13,400 pounds cash benefit to the Hamburg firm. In neither case was any application made to the authorities in England for a licence to break the law regarding trading with the enemy. The total effect of the proposals, had they been carried through, would have been to place the Hamburg company in possession of about 28,000 pounds, with no compensating advantage whatever to the British firms--and the defendant was committed for trial. He received sentence of imprisonment for his treachery on October 14, 1914, after due and proper trial.