A WARNING

Evening Post, Volume CXVIII, Issue 36, 11 August 1934, Page 10

A WARNING

DEBENTURE HOLDERS

STGCK EXCHANGE ADVICE

Mr. E. Bueholz, president of . the Stock Exchange Association, was asked by "The Post" today if ho would care to comment upon the posj>ion of the debenture holders in the Investment Executive Trust of New Zealand, Ltd.

He said, in reply, that after reading the interim report of the Royal Commission on the flotation of companies in New Zealand and other matters, and the reference made therein to tho Investment Executive Trust:of Now Zealand, Ltd., ho concluded , that the debenture holders in that trust should not become panicky and accept any such prico offering as would involve them in making a great sacrifice of their holdings in tho concern. They should await tho report of the inspectors appointed by the Dominion Government to investigate the affairs,of .the trust. He-understood that holders of the debentures were already being approached —not by members of the Stock Exchange of New Zealand —and were being offered purely speculative prices for such debentures.

'' The debenture holders should bear in mind that in the event of liquidation of the assets of the: trust there might be a return to them in excess, of the'prices now being offered by canvassers buying such debentures." STOCK EXCHANGE ADVICE. * Mr. Bucholz recalled the fact that more than two years ago the Stock Exchange Association, through the medium of all the banks and leading companies in New Zealand, sent out 50,000 circulars to the shareholders in these banks and companies, adviying them not to part with their shares to canvassers on behalf of trust companies at that time in process of formation, until they had consulted their bankers, solicitors, or members of the Stock Exchange Association of New Zealand.

Mr. Bucholz said he was expressing his personal views, but he believed they wero shared by all the members of the Stock Exchanges affiliated ■with the Stock Exchange Association ;of New Zealand. /