DEALING IN SCARES.

Dominion, Volume 2, Issue 620, 24 September 1909, Page 5

DEALING IN SCARES.

.JUDGMENT AGAINST A BROKER, j .;-," (By Telegraph-Press Association.) ' \ ! ..■'.. '•" : .':'-' J ..Auckland, September ■ ,23/ .'Mr.• Kettle, 5.H.,: gave , his reserved decision this morning in'--the case A. J. Canning v/ William Gniar, a claim ;of .£137 10s. for •■ OOO shares, ;calls paid, and' interest... , , ■■'. .' .; Defendant, -who was a'-'sharebroker nnd •jobber, admitted that he bought shares not only for oustomers.but; for himself. Ho.admitted that he put the shares of his client' in his own ■ name, : without e'pe'oifying tho numbers', of ■ the shares, 'contrary to.Section 29 iand Section 100 of the Companies' Act. Defendant also admitted, that ho had : takentransfers; in: blank, leaving the - secretary 'of - the" : company •' to fill in any: numbers. . This, said : the magistrate, was most irregular .and. dangerous. : . Defendant purchased 500 Champion shares in July, 1908, for plaintiff, at 4s. fid. , each. Tour hundred were numbered,- ond .100 from, himself were un-. numbered. Apparently ho held- these shares-in trust for plaintiff." -, On October .8 plaintiff' in .strncted ; defendant'to.soil at ss. .6d., land dofen-; dant,,on October 9, was offered ss. Cd., but ho did not accept. Defendant stated that he consulted ." Canning, ■ who 'withdrew' his ; instructions. 1 This plaintiff denied. The' Court'was not: satisfied that ■, such, an ■■ arrangement. took place/ On October ?. and. 10 defendant sold 500 ..Champion, sli.aresV which, ; in - tho ■ magistrato's opinion, were th 6' shares • held by defendant un ' trust :for plaintiff. The: shares .subsequently fell to little value. ' ■'■■'..■ ~=: '-..-• '•'■■ Tho','inagistrato : held that, the :person for '.whom "funds were.held; in trust' in euch' cirournstances -.iVas entitled to claijn. host benefits: that could be derived from thotransaction.' ■•■■.Hβ !'ga Vβ'.-jMpnerit.''for.'plaintiff; : 'for w8137' damagQSi.-to -bo asscesed. ■■■■",■'."' : ' , v? ','