EXTENSIVE BUSINESS

Evening Post, Volume CXII, Issue 106, 31 October 1931, Page 13

EXTENSIVE BUSINESS

Sir Arthur Wheeler's firm has carried ou an extensive- stockbroking business at Leicester for many years past,_ circularising thousands of potential clients all over Britain. The firm, which was probably the largest of its kind, kept up a large circularising, and statistical organisation estimated to cost at least £200.000 a year. Sir Arthur Wheeler was chairman of twelve companies, including tho British Hosiery Trust, the Low Temperature Carbonisation Company, the Grcsham Trust, Doncaster Coalite and United Drapery Stores. He was also one of the founders of the Charterhouse Trust from which he later withdrew. He is said to have been tho biggest customer1 of the British G.P.0., paying over £20,000 per month for postages and printing. Early this year Sir Arthur Wheeler filed his petition in bankruptcy, attributing his failure to the heavy depreciation of securities resulting from prolonged industrial depression. In .July he was summoned for conversion of clients' money. There were twenty-six counts, and tho amounts ranged from £100 to £3900, the total involved be-' ing £23,000. The money had been entrusted to him by clients for the purchaso of War Loan Stock. Jointly summoned with Sir Arthur was Mr. George Victor Smith, a former partner in tho firm of Arthur Wheeler and Co. In 1910, the Midland Industrial and General Trust was formed, tho shares beiug held principally by Wheeler and his family, and tho object being to take over the Wheeler business. An agreomeiit was entered into under which every transaction carried out by Arthur Wheeler and Co. was for arid on behalf of tho M.I.G. (tliu later name of tho trust), except where such a transaction was of purely stockbroking concern. The public, know nothing of this secret agreement. In November, 192!), Wheeler sont out circulars inviting holders of War Stock to convert their holdings into Conversion Stock at a fee of one-eighth of. 1 per cent. Instead of Wheeler and Co. doing, as their clients thought they wore doing, they transferred tho AVar Stock to their nomineo and transferred out of! his name an r-qual amount of Conversion Stock. Tho firm had daily dealings with the Bank of England until all their stock was held iv the name of their nominee, a retired cashier and former employee.

At the trial it was staled tlmt Sir Arthur Wheeler had no secret hoard and that friends were paying for liia defence.