SHARE PUSHERS.

Waikato Times, Volume 121, Issue 20260, 31 July 1937, Page 25 (Supplement)

SHARE PUSHERS.

THE FUBLIO WARNED. LOSSES OF SMALL INVESTORS. Heavy losses sustained by the publio Inspired the British Government to issue to the publio an official warning against “ share pushers.” The Board of Trade circulated the warning. It is difQoult to form an estimate of losses to the publio, but the President of the Board of Trade thought it would be as muoh as £5,000,000. Widows and olergymen were the most numerous of the “share pusher’s” victims. One difficulty of the problem is that, in some cases, the methods adopted in the beginning are not fraudulent. The “share pusher’’ creates a feeling of confidence before proceeding to induce victims to invest In worthless concerns. The Warning. Millions of copies of the Government warning have been distributed, the Board of Trade supplying copies to the Post Office Savings Bank, the Money Order Department, trustees saving banks, joint stock banks, and national organisations. It is hoped by this means to reach all olasses of Investors, Including, in particular, those possessed of comparatively small means. Members of the publio have been sustaining substantial losses owing to the activities of fraudulent share vendors. The warning sTates that the Government intends to take all possible steps to curb these activities. A strong and representative committee. recently appointed under the chairmanship of Sir Archibald Bodkin, lately Director of Publio Prosecutions, is engaged in a comprehensive review of the methods employed In perpetuating these frauds. The committee will put forward as soon as possible its recommendations in regard to additional safeguards Lv the Investor. The usual method ulopted by “share pushers,” states the warning, is to send out circulars offering opportunities for Investment which appear attractive and profitable. They may offer advice as to the investment of money in stocks, shares, or debentures of particular companies or “pools” or •• options” tn shares or commodities. Holders of safe investments are, Invited to sell their scouritios and Invest the proceeds in other securities which are alleged to bring in a much greater yield. The circulars are often associated with periodical “financial reviews” or “market reports” which protend to assess the prospects of various investments, some of which may be sound but others worthless. Persons receiving communications of this kind from strangers are strongly advised to take no notice whatever of them, and in particular they should not sign any documents or part with any money or securities at the suggestion of agents why may call upon them.” “ Cruel, Heartless Frauds.” Attention Is directed to recent remarks of Mr Justice Finlay In passing sentence upon certain share pushers. Mr Justice Finlay said he wished his words could be heard in every house in the country. These cruel and heartless frauds had been rendered possible by the fact that the public had been willing to believe the things said to them. If only when they received circulars of this sort they would consign them to the only proper place —the wastepaper basket—and if they would only take advice with regard to their investments from their bankers or members of the Stock Exchange, this sort of fraud would cease to exist, because it would cease to be profitable.