BAG OF BANK NOTES

Hawera Star, Volume LIV, 18 September 1934, Page 9

BAG OF BANK NOTES

MYSTERIOUS STRANGERS REPORTED DEALINGS IN SHARES BUYERS CHECKMATE®. Two strangers, a bag packed with banknotes, and eager demands for trustee companies’ shares —these were the elements of a mystery in commercial circles in Dunedin last Easter, says the “Dunedin Star.”

Who were the two men, so well endowed with the cash to do business ? Where did they come from? Were they principals or agents ? Why were they offering cash instead of producing bank references? Why were they making tempting offers to holders of shares in the Trustees, Executors and Agency Company and the Perpetual Trustees Company ? The curiosity of business men was not satisfied. The strangers carried out their transactions to the limit that shareholders would allow them, and left Dunedin as they had come — unknown and mysterious. Now the operations of the buyers have been partially uncloaked by the revelations at the companies’ inquiry in Sydney, whiere, (giving evidence, Mr Alcom isaid that travellers were supplied with cash and sent to ’ New Zealand with, instructions to buy Trustees, Executors and Agency shares as cheaply as possible, but to buy them. The shares on the New Zealand Stock Exchange were at £3 ss, and those obtained hy the Investment Executive Trust cost an average of £3 12s fid.

“THEY WERE! OUT TO 1 BUY.” When the two men arrived in Dunedin their identities were unknown. Evidently they held a copy of the share register of the Trustees, Executors and Agency Company, and approached a number of holders with a view to purchase. The ruling price on the Stock Exchange did not govern their operations. They were out to buy, at a high price if necessary. When the two men called on him, one shareholder, who was not anxious to sell, offered to hand over his shares at £IOO eaoh. “So you don’t want to sell,” remarked the mysterious buyers, who immediately left the holder’s office! It has since occurred to the Dunedin man that the buyers did not disclose their names: nor their interests,- and he now laments that he failed to attempt to draw them out as to the reason for their inquiries. The buyers were keen. Th© Trustees Executors’ shares were then quoted on the Stock Exchange at £3 ss, but offers- as high as £4 5s were made. One parcel of 200 shares was passed over for £OO0 —-hut the transfei was not sanctioned by the directors. All transactions were cash deals—on the spot. Bank bills of large denominations were used, and the transfer note was signed without delay. PROHIBITION OF TRANSEFER. But the supposed formality of the transfers being approved by the directors of the company was a stumbling block. Exercising the ample powers given in the company’s articles, the directors rigorously applied a prohibition of transfer, and during the past 12 months, according to the company's general manager, Mi* P. O'. Smellie, only three transfers, embracing 125 shares out of a total issue of 10,000 shares, had been approved. The company’s shares are well hold, and the 125 shares transferred are still held in Dunedin, according to the hooks. The amazing! cash business methods of the “travellers” are now revealed. When a Dunedin sharebroker declined to do business with men unknown to him or in business circles, he was told that no bank references would be produced, as payment would not he made by cheque, hut hy cash. The buyer opened his bag, and to the surprise of the holder produced a big roll of notes. The -sal© was completed without delay —but whether the Investment Trust has ever secured the shares is another matter.

The high offers made tempted several Dunedin holders, and hundreds of pounds are reported to have been handed over here. The sellers had no cause to demand to see the buyers’ credentials; they saw the colour of the money, which was enough to satisfy. INQUIRIES FOR, OTHER SHARES. Inquiries were also made toy the affluent visitors for Perpetual Trustees shares, but their main mission under the cloak of anonymity was the purchase of shares in the Trustees, Executors and Agency Company, in which the astounding and incorrect statement was made before the commission in Sydney that 45 per cent, of the shares had been secured. Questioned last week as to the number of ishares for which transfers had been applied and refused, Mr Smellie declined to make any statement. He added that any official statement for the public would be made by the board of directors.