WORDS TO. INVESTORS

Evening Post, Volume CXVI, Issue 142, 13 December 1933, Page 12

WORDS TO. INVESTORS

STOCK EXCHANGE REVIEW

(Special to the "Evening Post.") ■ AUCKLAND, This Day. Mr. G. C. C'reagh, chairman Auckland Stock Exchange, reported considerable improvement in business during the year. He said .there was every indication of an era of renewed'activity which was likely to last for some time. ~i Members still felt the disability of. the system of stamp duties on overseas transfers. Nowhere else in the world did such a sj-stem of. dduble taxation exist. It was to be' hoped that the matter would receive the attention of the Government. Dealing with the present' active conditions in the goldmining industry, Mr. Creagh , said .that investors should consider the value given by promoters, a test suggested being that if the value was only the claim and its pegs, without satisfactory prospecting results, it could be assumed the proposal was a gamble without much chance of success. "If this test were more often employed, man.y so-called goldmining companies would never have seen the light of day," said Mr. Creagh. Attention had been drawn to the dangers resulting from the system of what was known as interlocked ' companies, more particularly in the older countries of the world. . Warnings had been given that it would be necessary to contend with the methods adopted by such organisations it' they were allowed to establish themselves in the Dominion. The investing public had been cautioned against exchanging shares in well-estab-lished companies for shares or debentures in newer companies holding out promises of higher rates of interest. Mr. Creagh was re-ejected chairman for the fifteenth year in succession. It is stated to be the longest period of any previous office-holder. Mr. J. YV. Frater was re-elected vice-chairman.