THE BROKERS' YEAR.

Auckland Star, Volume LX, Issue 243, 14 October 1929, Page 4

THE BROKERS' YEAR.

VERY HEAVY TURNOVER.

TO-DAY'S CONFERENCE

PRESIDENTIAL ADDRESS,

| The annual conference of the Stock ] Exchanges of New Zealand was opened this morning, the proceedings, as usual, being lie\d in camera. Representatives of the various Dominion exchanges were present. In welcoming the delegates, the president, Mr. G. C. Creagli, said that the year, so far as business was concerned, had been a good one from a sharebroking point of view, and the turnover in shares and stocks of all classes, with the exception perhaps of gold mining, had been very heavy, probably constituting a record for some years past. Not only was it true that the Stock Exchanges had experienced remarkably good business, but it was satisfactory to note that general trading conditions had improved and the outlook for the immediate future was very encouraging. Many matters had called for the consideration of the committee during the past year and it was becoming increasingly apparent that the affairs of the association, or, perhaps more correctly speaking, the affiliated exchanges, would require more time given to them than had hitherto been the case. They had probably reached the stage when either conferences should be spread over two or three days, or they should hold meetings at intervals of not longer than six months. On the question of the protection of investors Mr. Creagli said: —"My predecessor, Mr. Reeves, in concluding his opening remarks last year, referred to the questionable methods of a class of share salesmen whom we, in common with other I countries, have in our Dominion, and I would like to draw attention again to his advice, as much or more needed to-day than ever before, that investors should communicate with a member of a Stock Exchange before applying for shares in companies about which they have had no previous ra'liable information. In his speech at the annual meeting of the New Zealand Society eft: Accountants the president of that body warned small investors of the necessity for being extremely guarded when investing in new enterprises. He pointed out quite correctly that care should be taken to see that the prospectus of a new concern is all it purports to be, that statements of the value of assets being purchased are supported by an expert and reliable valuer's certificate. Man}' schemes and flotations, as the journal states, are either over-estimated or over-capitalised, and with no chance of success are being put on the market to tempt the unwary investor. Another well-known accountant on the same occasion referred to what he described as 'The present practice of hawking very doubtful shares about the country and selling them to people who are not able to judge the future prospects.' He added that he thought, as we all do, that an amendment of the Companies Act was long overdue. These are the words of accountants, not of sharebrokes, though they bear out what we have been endeavouring to bring home to the public for a very long time. Unfortunately for them not altogether with the success that could have been wished for."