DISPOSAL OF SHARES

Wanganui Chronicle, Volume 79, Issue 246, 17 October 1936, Page 10

DISPOSAL OF SHARES

ALLEGATION OF HAWKING CASE AT INVERCARGILL I Per Press Association] IN VERCABGILL, Oct. 16. In the Magistrates Court to-day, before Mr. v/. H. Freeman, S.M., Harold Calvert, a share salesman, Ox Wellington, appeared on a charge that, during juiy and August, lu3b, a L Riverton and elsewhere, he did gu from house to house offering shares in the McArthur Trust, Limited, a company incorporated in Queensianu for subscription to debenture holders in the Investment Executive Trust, Limited. The accused, who was represented by Mr. A. C. Hanlon, K.C., and Mr. C. M. Barnett, Dunedin, pleaded not guilty and elected to be dealt with summarily. Mr. J. Macalister, who prosecuted, said the defendant was charged with an offence popularly kno vn as snare hawking. That the Legislature regarded it as a serious offence was shown by the fact that the maximum penalty was six months’ imprisonment, or a fine of £5OO. The defend ant was a share salesman for the McArthur Trust, Limited, and the case originated from the sale by Calvert of shares in the McArthur Trust to the late James Fleck. In the latter’s lifetime he had been induced to take debentures in the Investment Executive Trust to a vaiue Ji Iiu,UDO, and his wife took shares to the value of about £6OOO. Before liquidation of the companies the McArthur Trust, Limited, was registered in Queensland and the agents were soon busy endeavouring to get control ot the debenture holders’ money. Agents went to the debenture holders and persuaded them to part with their debentures for shares in the McArthur Trust, Limited, the bait being £lO5 of shares for £lOO debentures. The defendant made a thorough canvass of the debenture holders in the district and was successful in inducing them to exchange their debentures for shares, continued counsel. He visited them in their homes and thereby committed a breach of the law. He induced the Flecks to exchange their debentures for shares. They were both old people who had no independent advice, and they were persuaded by the defendant to transfer their debentures. Since the transfer of debentures the liquidation of the Investment Executive Trust, Limited, had proceeded and the debenture holders received 3s in the £ by way of interim dividends. Shareholders in the McArthur Trust, Queensland, received nothing. After lengthy evidence had been heard, Mr. Hanlon said that the prosecution was a private one and that there appeared to be an ulterior motive behind the action. The initiator case. The point was whether the accused had gone from house to house selling shares. Why was not some evidence produced to support this? No evidence had been brought forward. Counsel was not concerned about the rights or wrongs of the McArthur Trust transactions. They had not the slightest bearing on the case. The point was wether the accused went from house to house trying to sell shares. There was no evidence on that point. Hawking meant going from house to house and from street to street. There was no evidence of that. The facts showed that the accused followed an itinerary. He knew who the debenture holders were and he sent these people notices and told them what was being done. By this, counsel submitted, that it could not be said that the accused committed an offence of going from house to house. The magistrate reserved his decision, bail being fixed at £2OO.