THE SALE OF SHARES

Stratford Evening Post, Issue 1, 13 December 1928, Page 6

THE SALE OF SHARES

-EVILS OF CANVASSING. NEED FOE RESTRICTION. \ _ AUCKLAND, December 11. The Wholesale misrepresentation indulged in by a certain class of share salesmen was strongly condemned by Mr G. C. 'Creagh, chairman, at the annual meelting of the Auckland Stock Exchange.

There is 'hardly a blessing in this world without a curse in a greater or lesser degree attending upon its heels,” Mr said. “The spread of the investing habit has brought in its' train an evil of considerable proportions. In short the great increase in (the number of inexperienced’ investors and would-be investors .presented the share swindler with a golden opportunity to exercise his,.detestable calling and experience shows, particularly in Britain and America, that he has taken full advantage of it. Many small investors have been robbed of their life savings. Bond salesmen tour tt'he country calling from door to do'Or, they painjt glowing pictures of the fort/.nes to be made by dealing in stocks 'and shares and in particular by buying thos e which they have in their bags. In this way simple folk are induced to part with their hard won savings. It is true they receive shares, hut more often than not these ■turn out to be worth no more than the value of the paper on which the y g,re printed. In Britain and Apierica.an attempt has been made to deal with this scoial evil. In Britain for instance a Bill is under consideration by Parliament which aims at placing greater obstacles in the path of the share swindler. It will absolutely prohibit the ’offering of shares from door to dohr. There are stringent regulations governing the offering of securities through (the post. In England only stocks which are officially quoted on the London Stock Exchange may he so offered. Moreover the Bill purposes to protect" th e investor by ensuring fuller information regarding companies, especially in the"' prospectus.” Mr Creagh added that an effort was being made to secure co-ordina-tion in stamping out the share swindler in Britain and America, but the question was one affecting the greater part of the economically civilised world. He urged that steps should he taken to tackle the problem in New Zealand for, although investment could never be made foolproof, much could be done by preventing deliberate swindling.—Herald Service.