STOCK EXCHANGE TRANSACTIONS.

Press, Volume LXVIII, Issue 14291, 29 February 1912, Page 9

STOCK EXCHANGE TRANSACTIONS.

THE EVILS OF OVERSELLING. A STRONG INDICTMENT. (srE«AL to "the roxss" >. AUCKLAND, February 28. The methods of the Auckland Stock Exchange came in for further criticism to-day during the trial of *Jatr.*s Scctt Lennox for lash and hazardous speculation, resulting m bankruptcy. • Mr Selwyn Mays, who appeared for thor Crown Prosecutor," stated that tho bankruptcy was duo to overselling, a matter which had become notorious. "At the present time," said Mr Mays', "tho Auckland Stock Exchange reeks in the nostrils of honest men, several of whom havo spoken to mc about it." His Honour would be surprised to hear, he said, that there had lately been another serious wave of overselling on the Auckland Exchange. Only a month or two ago one man had bs«n 'hammered' for 'overselling.' Still another Ea'd been submerged in the same way, and had only'now got his head abovo 'water. While the punishment might in somo measure restore confidence, there ■vvas an undoubted gloom over the Auckland Stcck Exchange at the present time, and it would not be entirely removed until such practices were stopped. "I know of no other case," concluded Mr Mays, "in which a broker has oversold to the extent of £17.000 (as tho prisoner did in Talismans) and I know of no other case -j-her<» » m?n used *70C0' of his client's nioncv to carry on his business, but until something is done towards compelling trust accounts, the way is still open for the carrying on of the practice."