SHARE TRANSACTIONS.

Dominion, Volume 1, Issue 18, 16 October 1907, Page 4

SHARE TRANSACTIONS.

■FUNCTIONS OP A STOCK EXCHANGE. IMPORTANT DISCUSSION. . . . (By Telegraph.—Own Correspondent.) Auckland, October 14. . Apropos of Mr. Poland's question in tho House of Representatives as to tho methods of. tho Auckland Stock Exchange, attention has been drawn to tho shares of tho Taima Triumph Gold Mining' Co. When last weok tho'paid-up shares reached 35., while the contribution shares wero only about Is, 6d., the Exchange decided to write to tho secretary of tho company for an explanation. The secretary'of the Exchange'wrote as'follows:— ."I am instructed' to ask you if you can givo nny'reason for the difference that at present exists in the quotation for tho two issues of shares in your company; also will' you kindly let me know if your directors are willing to allow ■ contributing shareholders to pay .the company the uncalled threepence per*share to make their shares sixpenso paid, Up." ■ -.'.-■ • -. ■•• ' .'. ;V The company's . secretary- replied as follows:— .: . . . .... ■: .<:-.: ■;• . " Lean give you no information as to-tho , eccentricities of tho share market. "Upon a question of this sort! would suggest Itnr.t some of the leading-members of.- your iiix■■' change would be bettor able than myself to furnish the, information you ask'for. 4 s regards -the second portion of your letter., 1 Vt ill submit /the question: to ■ my. directors .\t the next mqeting.or.the Board, and will com ; municato with you later on.'! ■■;. '. ; . : ..,," THE MATT.ER DiSCUSSED. :, Z- ,. The Vice-Chairmaiv (Mr. E. Andorsj/i), said this matttn had.been.considered by;• the committee,'.and it. was decided to submit, it. to tho whole of tho members of the Exjjango for thoir' consideration. ,Hβ might iay.that. the. committee did not doom it.advisable to strike the company.oil:,the list simply becausj) certain ■ speculators had, , probably-;.. sold.. a number of paid-up shares which they perlt:ips did not possess, and it might, bo that other speculators had cornered, line shares. He considered himself this was a matter outside the functions of the Exchange. To strike tho company out of the list might entail loss on innocent shareholders; who. knew, nothing whatever about theso transactions. Mr. D. B. M'Donald: Is there any/proposal to strike it off tho list?' ' -!' • Mr. H. IT. Shepherd: There soon wjll; be'. "• The 'Chairman said, it had ,, been suggested that the directors'of the Company should shareholders to. the 3d: ! .on : the contribution shares. He did not; know why, unless it waa;to help those'who had .oversold. It.seemed tphiriithat' what' the Exchange, should, do. was to niako. possibl.R. the; fact that. tKere was only;'3d. per share between tho two issues.' .".'.'."'■' ..; Mr. .Sheplierd referred to.the rules'to show that .they had power to .remove 'the rianie of. a company.from the list.'- Ho then moved that the Tairua Triumph, Gold Mining Company be removed from the list until a inoro.'Satisfactory ■oxplauatipiL.'was ; ,received.';...-Ifr.. Shepherd said he'was not directly, nor ..indirectly interested in this Company: therefore.h'e had np • bias ; in.,the .'matter. , Tho .Exchange was carefully, watched •both m'Parliament and by the general;public outside, as well vostors. Therefore,, he felt", it, was ' all, tlie more necessary vthat tlieyj shquld 'lot , /it'.bo clearly, undorstobd- that .they .discountei;anced this''kind; of thing... Here, they- had a .stock with, only . 3d. between, the ;tw,o. issues; , yet ono,-.was. quoted at 3s. )T 'andtho other'at'ls. Gd.. . . Such, a difference showed '.there, c ;Was something- radically .wrong Epinewnere.'.V' It was .tho duty of the. Exchange .to ferrot out eyor'jthing'. connected',therewith./.' ,".; ''.;'.l'". ! .

t A QUESTION IN PARLIAMENT S ' It was a coincidence, said Mr Shepherd,, that tliß-lposition ishould,pariso> so-.elosp. upon a question being asked in the House'as to the operations of the Exchange., He believed the Member'for'Ohinemurij. in Jbriuging .the question,,b.eforo the. House, was referring to the' Comstbck Company, which had engaged at-tentibnvsonio' time ago,', and- which, after some difficulty, was placed on the list. "Wo did not want too.-much saidv in' Parliament about .pur business," ho continued; , '"but,if anything is: said,, let. it.b'e said ''that'we , , are. endeavouring ; .t-b .protect.' the- interests' 1 of the investing public.,"' It'was thejr } duty.,tp,reV movatho .Tairua:Triumph ; Company from,the-, list until an; explanation of., a more satisfac'r tory nature was furnished, v-If;a:reasqn was not' forthcoming, 'the be struck off the'list. • measure niight be-in-troduced and passM v which' would re juire; .til questions to be'roferfed; to the.'Minister for alines, leaving the. members J of' the. Exchange quite.'free frqm responsibility, "but'at.present' it:was their duty to.protect the!outside lie.' ■;.There; might bp. somo'. in the rbphi; who knew the truo position of.affairs,- yras not ono of them;'' ■■" '-'■ ': ' '' ' Mr. J. } M. Lcniiox'said; it'would be'better to' dofor thp whole matter until/they had received' a. reply from' the "directors ' to' whether tliey.woul'd.'allowisharehpldersto pay" up tho other 3d., per"share." It. seemed to, him that where , a company ■ was making calls the directors should hardly-refuse ,t6, : accept monoy aliead, especially when.they had not to pay interest upon-it/,. •■■ ■' ' ■ •■■ ''■' ■■■■■ ;;•, ,-■ -''- Mr'.' Hull" said ho had; not the slightest sympathy with any man who .oversold shares.Nothing'riiined the market'spmuch as overselling. Men; who oversold should be'squeezed to the last coppor...', .' '/v. n ~.;,:., v, : Mr. Shepfiord's motion lapsed for, want or a seconder, and the call, was proceeded with. When the shares were reached, on thedistj Mr.''Fratef'moved that, the:paid-upossuebo notcalled: Upon the; question of reopening -the discussion' being-put to the" meeting, the members decided to go on with the;.call. ;■;.'■•;