INVESTMENT TRUSTS.

Auckland Star, Volume LXI, Issue 122, 26 May 1930, Page 4

INVESTMENT TRUSTS.

ATTITUDE OF STOCK EXCHANGE. A VIRTUAL BOYCOTT. According to an article, published in a Wellington journal, "Accounting, Commerce and Insurance," the New Zealand Stock Exchange has recently adopted the following resolution:—"That no member of any Stock Exchange in New Zealand shall act in any capacity whatever in the flotation or control of any Trust Investment Co." According to the writer the object of the motion i 8 to do everything possible to kill such companies from operating in the Dominion; and the* reasons argued in favour of the motion are these:— (1) That these companies may ultimately become organisations to buy and sell shares in competition with Stock Exchange members. (2) That brokers who may be connected with such companies will in time be able to influence shareholders in such companies, so as to cause them to transfer their personal broking business from other brokers to themselves. The writer having stated the facts proceeds to launch a violent attack on the Exchanges for their attitude, which he claims is entirely unjustified and is opposed to the general interest of investors. He adds that the resolution was opposed by the Wellington Exchange.