"RASH SPECULATION."

Dominion, Volume 5, Issue 1376, 29 February 1912, Page 4

"RASH SPECULATION."

TWO MONTHS' IMPRISONMENT. tllr Teleirrann-Preis Amoelatlon.) Auckland, February 28. James Scott Lennox pleaded guilty at the Supreme Cmirl this morning, Wore -Mr. Justice Chapman, to n charge ot having indulged in ra.«h and hazardous speculation, which brought about his bankruptcy. Hi- Honour, addressing the prisoner, remarked that there cxi-ted in this country a very stringent bankruptcy law which had enacted punishment lor people who speculate recklessly and happen nfinrwardi tn become bankrupt. "This is exactly yiiur cusn," remarked his Honour.

"11 may be that a gcvfll deal of this speculation was conducted for purposes of enabling you to reinstate your credit and incut your liabilities, but that may bo said in nearly nil Mich'eases. The law has decided, however, to discourage them by making it a penal offence, punishable by imprisonment. It is quite useless to inflict a line. It has been recognised that where there is a conviction, imprisonment must follow. Now, J. do not think it is nece>-ary to indict a long term of such punishment upon you, because I recognise that you are not charged with a fraudulent, but with a reckless, act. I also re-eogni-e that yon linyc had this hanging over you for tome time, and that it has prevented you from securing employment in certain channels. As to tho practice in which you have indulged, it is about time something was done to stop it. I know reputable shnrebrokcrs who have expressed their intention of doing what they can towards that end. It is for the Government to suggest to Parliament what steps are necessary. It is my duty to inflict a term of imprisonment upon you. I think it is Millicient in the circumstances to sentence you to two months , imprisonment, and as you are not charged with a fraudulent offence, I mako the sentence without hard labour."

(By Tclecraph —Soeciai OorrcsDondenU Auckland, February 2S. In his address to the jury in tho Lennox case to-day, Mr. Mays (Crown Prosecutor) commented freely on Stock Exchange methods. Mr. Mays said (hat in 1010 the prisoner did nearly half si million ivjunds' worth cf business in the absence of trust accounts. His own funds were mixed up with those of his clients, and tho snnic applied to his books. Any man who was compelled by law to keep a trust account knew that he must not overdraw that account, and he (counsel) suggested that it was high time for sharebr.ikers to be brought into line with auctioneers ami other important, businesses , in regard to the ooihpulsory keeping of trust accounts. The present state of affairs, was a serious barrier' to bankruptcy proceedings. "I know of no other ra.se," concluded Mr. Mays, "in which a broker has oversold to' Hie extent of .£17,000 (as the prisoner dirt in Talismans), and I know of ii 3 tther ease where ;i man used »£3l)flO of his clients" money to carry on his business, but until something is done (owards compelling (rust accounts (he way is still open for the carrying on of the practice."