MANY STOCK BROKERS IN CANADA ARRESTED.

Star (Christchurch), Issue 18985, 3 February 1930, Page 10

MANY STOCK BROKERS IN CANADA ARRESTED.

CONSPIRACY TO DEFRAUD ALLEGED BY EXCHANGE. (United Press Assn.—By Electric Telegraph—Copyright.) VANCOUVER, January 31. More firms feature in the nationwide drive against alleged wholesale conspiracy by brokers to defraud the public. At Victoria, Hugh Allan and Co., _ a very old firm, and at Winnipeg S tobies, Furlong and Matthews, have been assigned. The latter firm have closed all their offices, leaving Saskatoon and other centres without trading. There was no trading in Ottawa because all the brokers had been suspended by the Stock Exchange. There was a sensation at Calgary when two millionaires who had been Suspended, Mr I. W. Solloway and Mr D. F. Patterson appeared at the Exchange, trading in defiance of the Exchange’s order that trading should cease. Both were ejected, and their previous trading was cancelled. The drive is likely to compel legislation banning all business in -stocks except cash trading. At Ottawa, the Provincial investigator compelled one firm to buy back all the stock that it had sold in a dubious mine. A financial sensation was created throughout the nation by the arrest of sixteen stock brokers for alleged conspiracies to defraud the public through market manipulation. It was alleged that the brokers, acting co-operatively, ran the prices of stocks up or down to suit their purposes, and took their clients’ money without executing orders as directed. The Provincial Government is endeavouring to avoid a financial panic.