THE SHAEEBROEERS AND THE BOEOUGH COUNCIL.

Thames Advertiser, Volume X, Issue 2602, 20 April 1877, Page 3

THE SHAEEBROEERS AND THE BOEOUGH COUNCIL.

| A special meeting of tho Borough Council was held yesterday afternoon, for the purpose of receiving a deputation of sharebrokers, and re-considering the decision come to at last meeting to enforce tho license fee on sharebrokers. His Worship the Mayor presided, There were present—Councillors Eowe, Gibbons, lihronfried, Eenshaw, Eead, Macnab, and Dr Kilgour.- A deputation from the Sharebrokers' Association, Mr J. D. Wickham, and several other interested parties, were in attendance.—The Mayor stated that he had called the present meeting at the request of a deputation from the Brokers' Association, who wished to lay certain particulars before them relating to the Sharebrokers' Act of 1871. So far as'he understood the matter, it stood thus: All persons carrying on business as dealers in shares were compelled by the Act to take out a license, the fee on which was £25, and to do certain other things. The Act was passed in 1871, and only during the first year was it acted upon; after that only one hero and another in Auckland obeyed its provisions, and that only for a short time. Since then it had been regarded as a dead-letter. He might mention the fact that if the Government had had the power they would have revoked tho proclamation bringing the Aot into operation. And, further, they would have repealed its provisions, but owing to the pressure of business towards the close of the session they would not undertake the passage of an Act, nor would anyone else. The Act of 1871 was permissive, and only came into force after proclamation. Ho mentioned this to show that the Government would have revoked the proclamation but found that it was not in their power. There was tho fact that by law anyone carrying on this business was subject to the provisions of tho Act, and it was now proposed in this Borough to put the law in force. He presumed that tho brokers wished to show cause why that should not be done. Some said it was not for tho Council to interfere in the matter, whether the law was a good or bad one —they lived under the law, and this law should take its course the same as any other.—Cr. Maonab inquired if the meeting was a legal one. fj e understood that a special meeting of the Council required d two days' notice.—The Mayor said tho meeting was legal—Mr Salmon returned thanks to the Mayor for the ready manner in which he had listened to the application made to him for permission to state their case. When the Act came into operation they had to pay the large sum of £25 for license, besides entering into heavy bonds; for this they obtained no protection whatever, unless they turned common informers—a position for which they had no relish. They found themselves in this position-for any slight breach of tho Act into which they might inadvertently be led, they might be heavily fined, and their bondsmen would suffer,—moreover, they would be prohibited from carrying on their business again at all in anypart of the colony. The Act was proclaimed as being in force in Auokland, but tho punishment for its breach extended everywhere and was everlasting. The brokers had complained of it to the Governor, who smiled gently and said they must protect themselves. The only privilege the Act gave them was to take their fees and allow them to stand and be shot at. There was no provision to prevent any person from dealing in shares, the only provision was to inflict penalties on such persons as obtained a license. They had memorialised Government, and received an answer to tho effect that an effort would bo made in the coming session to amend the law. The sharebrokers were quite willing to pay a reasonable fee. They would suggest that tho Borough Council allow this matter to stand over till the noxt session of Parliament, as a broker now was at the mercy of any slippery client, who might cause a licensed broker, through no fault of his own, to be fined £20-ifc might even be £200. They would, too, be worso off under the Act than a blacksmith, for he could work anywhere, but a broker convicted was prohibited absolutely from dealing in shares again. He put it to tho Council, was it fair to place them in such a position?-Mr Fbateb, being called upon by the Mayor, said, after what had fallen from MrSalmon, it was unnecessary for him to trouble them with any romarks. He fully concurred in all that Mr Salmon had said.—Gr. Eowjs thought that on all hands tho Act was acknowledged to be iniquitous, ill-considered, and unworkable. Government themselves acknowledged it to be so, and had pro-, mised to amend it this session. The session being so near at hand he considered it would not be wise to press the matter now. In the first place, it was not right that a tax of £25 should be levied-tho amount was too heavy. Secondly, it was not right to interfere with a class of people who for the last two or three years had not been able to get a living at their business. Thirdly, he saw no reason to take steps to carry out an Act which branded any class of people as thiovos. He felt sure any local body that attempted to enforce this Act would lose rather than gain. At the same time ho thought sharebrokers ought to be licensed, paying a reasonable fee, and be subject to certain restrictions. In his opinion it would for the present be best to leave tho matter alone.—Mr Salmon said that for Borne time there wero nominally l'l or 15 brokors-of these fivo or six had kept entirely to that business. Sinco tho recent move the number had increased to about 18, He spoke from personal knowledge when he said that not one of tho additions had as yet made £25. If the payment wore enforced it would throw tho whole business into tho hands of some four or five persons, and tho rest, he supposed, would have to go gum digging.-Cr. Eowe did not think any other corporate body would bo found attempting to put this' Act in oporatiou, so thoroughly unjust and unworkable was it.r-Or Gibbons said thero was no doubt as to the law. It was tho question with him whethor it was worth while at present to enforce it. The Government hadn't thought so, and suffered it to fall into abeyance.—Cr. Eead considered there was no more roason for oxcusing a share-

broker than an auctioneer.—Or. Eenshaw asked if the Act was not the result of the action of the sharebrokers themselves ?-Mr Salmon admitted this, but explained that tho Act was so ill-drawn as not to be workable.-Cr. Eenshaw said that if Government for a period o fivo years could not enforce the Act it certainly created a doubt whether it was wise for a local body to attempt doing so. So far as the sharebrokers were concerned it looked very like an attempt to create a trades union for their own protection, succeeding in tho attempt, and then complaining of the result.-Cr. Ehbenfbied said he had no doubt there was something to complain of in the Act, and if so it ought to be altered. Still, Mr Salmon admitted that a sharebroker might properly be licensed, and for his part he was notj sure that the evils complained, of were as great as stated. There were two sides to this question. Even if Government did pass a new Act this session it might not meet the approval of the brokers. The auctioneers' license feewas £10. If some assurance could be given that the brokers would pay such fee as might be imposed by Government, then tho Council might wait.-Cr. Eenshaw : But we can't make any such bargain.—Cr. Ehbenfbied: Certainly not, but we might consider how a compromise cou d be effected.—Cr. Gibbons said tho only course they could tab was to allow of some little delay. He moved that the enforcement of the payment be deferred for one month.—Mr J. D s WiCKHAMsaid he knew the whole working of the Act. He thought Or. Ehrenfried's proposition a fair one. He proposed that an amount, say of £10, be paid down at once awaiting tho action of Government. The great trouble with sharebrokers was not the license fee, but the Stamp Act.-The Mayob said ho had sketched out a proposal that no proceedings be taken against any sharebroker depositing £10 in one of tho banks, thero to remain pending the amount of fee to be fixed in the ensuing session.—Cr. Ehbenfbied concurred in this.—Cr. Howe said they could not pass any resolution at that meeting; if they did it would only be as an indication of their feeling, nothing more.-Dr KilGOUE thought as they had now heard what was the opinion of the sharebrokers thomselves, the Council before coming to any resolution should have the opportunity of conferring together, and afterwards inform the gentlemen interested of tho result.-Cr, Ehbenfbied proposed that this meeting, having heard the statements of sharebrokers, take the subject into consideration at their next meeting, and intimate the result.-Cr. Gibbons seconded the motion, which was carried, and the meeting terminated.