ARREST OF BROKERS

Dominion, Volume 23, Issue 110, 3 February 1930, Page 11

ARREST OF BROKERS

ALLEGED MANIPULATION OF STOCK MARKET Vancouver. January 31. After the arrests in Toronto of .sixteen stockbrokers on charges of manipulating the market and defrauding the public, five firms were suspended from the Exchange at Toronto and one nt Vancouver. Seven accused were arraigned and remanded on bail of 100,000 dollars each. There is a public panic through stocks on the Toronto, Vancouver, and Montreal Exchanges causing a dramatic slump in prices. The Toronto brokers were arrested at dawn in bed, after a simultaneous Ontario Government audit of the books of sixty firms. Bank accounts and hooks were seized. Later. The assignment of two more firms is a feature of the national drive against the alleged wholesale brokers’ conspiracy to defraud the public. At Victoria, Hugh Allan, the oldest firm, and at Winnipeg, Stobie. Furlong, and Matthews have assigned their estates. The latter firm has closed all its offices, leaving Saskatoon and other centres without any trading. There is no trading nt Ottawa, because all brokers have been suspended by the Stock Exchange. A sensation was, caused _at Calgary when the suspended millionaires, Messrs. I. W. Solloway and D. F. Patterson, appeared at the Stock Exchange, trading in defiance of the Stock Exchange, which had ordered all trading to cease. Both were : ejected, and their previous trading cancelled before transactions were resumed. The drive is likely to compel legislation banning all except eash trading in stocks. . ... At Ottawa the provincial investigator has compelled one firm to buy back all stock it had sold in a dubious mine.