MINING.

Press, Volume LXVIII, Issue 14306, 18 March 1912, Page 8

MINING.

STOCK EXCHANGE METHODS. (special to "the γ-kess"). AUCKLAND, March 16. An article appeared iocently in the Chxistoburch "'Press" commenting on some of the methods prevailing on the Auckland Stock Exchange It elated, "Thcso methods have booomo so notorious that there are many southern investors who in disgust refuso to look at anything in the shape of investments ccming from the Auckland province." Tho ariicio then referred to overselling, and eusfgusted a conference of leading brokers in tho Dominion to advir-e much needed amendments in tho law. In conversation with a member of the Auckland Stock Exchange this morning, a representative of tho "Star" waa informed that last year the committee of tho iixchungo agreed to a resolution asking tho Government .to pass legislation to prohibit ciersellinpr. He added. "Ail that is wanted ia n simple Act, making it criminal to oversell shares. That would check the practice to a large extent, although, no doubt, there will always be some oversollmg. An imyression appears to exist that fhe overro'Jinj 13 done by the brokers, but it eeems to be quito overlooked that clients may msiruct their broker to oversell shares, and if a loss in sustained the client gets it when a3kcd for tho transfer. .Nα broker can avoid that happening, but legislation c>u!d be passed to make srcch acts criminal, v.hether done by brokers on their ovra account, or by instructions of clients. Aly own opinion is that the balk of the overFillies; has beti dose by persems rot members of the Exchange, but -are jfot the blame for iho lot, although tho investors pet the cream and the brokers only the skrra milk in the transaction. It is not bo much for the Exchange I would like to see legislation jessed making overselling criminal, but beCMU'e the practice is absolutely killino; public uiterest in rniiin<-, which is a bad thing for the industry. Until the public, are sure that they havo a fair run for their money they Will fight siiy of investing in mining shires."