ALLEGED SHARE FRAUDS.

New Zealand Herald, Volume LII, Issue 15884, 3 April 1915, Page 7

ALLEGED SHARE FRAUDS.

BOWRON COMPANY'S AFFAIRS By Teleei&nh— Association— (Received April 2, 7.30 p.m.) Stdxet, April 1.1. At the annual meeting of the Bowron Brothers Export Trading Company, Ltd., Mr. Alexander Jobson, one of the directors, who presided, explained that he was now the only local director of the company, Hermann's place not having been filled, whilst Mr. F. W. Bacon had resigned. Mr. Jobson, who was re-elected a director, stated that he desired to obtain 'an expression of opinion on the question of instituting criminal proceedings against J. Earle Hermann respecting allegedly fraudulent dealings in the company's shares. He outlined the steps taken to secure Hermann's resignation of the chairmanship of the board. Hermann admitted issuing shares irregularly, but pleaded that he was not in a proper state of mind. He (Mr. Jobson) had obtained a distinguished counsel's opinion, who held that perhaps half the fraudulent scrip certificates, representing 60,000 shares, woula be held good, as against the company, and it was likely that many of the holders of the other half would fight the case. The business was undoubtedly good, and the trading figures were big. It would be a very great pity if it was sacrificed. After considerable discussion the meeting decided that the directors be asked to prosecute Hermann if his appeal from his iecent sentence proved successful. It also favoured the general suggestions of the New Zealand board as regards the clearing of irregular chares, and agreed to support any reasonable scheme of readjustment.