SEVERE CENSURE.

Auckland Star, Volume LX, Issue 225, 23 September 1929, Page 7

SEVERE CENSURE.

INVESTORS RUINED. Hatry Group Failure To Reveal Position. j EFFECT ON EXCHANGE. ' {Australian aud N.Z. Press Association.) [. (Received G. 30 a.m.) '! LONDON, September 22. Everything on the Stock Exchange has been overshadowed by the sensational collapse of the Hatry croup of securities which commenced in a small way on Tuesday anr 1 pro Messed to a dramatic climax on Friday when the Stock Exchange Corn initteo took a drastic step by suspend ing dealings in the group.

This brought confusion to the market and completely offset the more encouraging signs which had been apparent earlier in the week.

From gilt-edged down to mining shares a weakness set in, and the blow was more severely felt as it came at the end of the account when arrangements for a carry-over had to be made.

It was, of course, industrial shares that suffered most, and there was a general marking down of prices. Fortu riately silt-edged, though unable entirely to withstand the adverse influence, did not give much ground, the losses in most instances only amounting to about one-eighth.

Colonials wore generally steady, though the Melbourne Metropolitan Board of Works five per cents 1954. fell further to 911, doubtless on account A the association of the Corporation of General Securities with this issue last April. This stock was quoted at 94 on Monday.

Newspapers comment severely on the failure of the directors of the Hatry group to make a statement regarding the position of affairs. The "Financial News" says that companies have been unusually" dilatory in submitting accounts'and reports. Into those companies the money of innumerable small investors has been placed, and brokers in both London and the provinces hava transacted bargains in good faith.

The directors who surround Hatry, the paper continues, have plunged many confiding and not excessively credulous investors and many brokers into ruin, or a state of embarrassment very like it. Hatry must, from the position he holds, be held up to censure in this regard, but his colleagues on various boards must share liis responsibility.