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“APPEAL TO GAMBLING INSTINCTS”

MAGISTERIAL VIEW OF COMPANY’S METHODS HIGH PROFITS DANGLED BEFORE INVESTORS By Telegraph—Preu AssociationChrlstchurch, November 29. , The methods of finance indulged in by an Australian company which proposed to distribute prizes ranging from £sooo’ down to £5, was the subject of a judg-. meut by Mr. S. E. McCarthy, S.M., in the Magistrate’s Court to-day. Harold P. . Delwood, commission agent, was charged under section 63 of the Gaming Act with having published a circular inviting persons to take shares in a lottery or scheme known as “The Co-oper-ative Perpetual Investment Company,. Ltd.” The Magistrate said the company proposed, with a capital of one million pounds, divided into four million shares of ss. each, to invest capital at. 5 per. cent., and the interest of £50,000 lamong 382 shareholders each year. Each shareholder was entitled to receive a. prize, and on this basis it would take at least 11,363 years for each shareholder or remote descendant to draw his prize. Mr. McCarthy said ho had come tothe conclusion that the transaction was a gambling transaction, with a strongthough latent appeal to the gambling instinct of the investor. He likened the case to the feeding of vultures and the plucking of pigeons, the high profits dangled before intending investors being the strongly-odoured meat necessary to ‘attract the' pigeons. Defendant had taken up the selling of shares without due consideration. As it was a test case, defendant was convicted, and fined £2.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19211130.2.67

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 15, Issue 56, 30 November 1921, Page 6

Word count
Tapeke kupu
242

“APPEAL TO GAMBLING INSTINCTS” Dominion, Volume 15, Issue 56, 30 November 1921, Page 6

“APPEAL TO GAMBLING INSTINCTS” Dominion, Volume 15, Issue 56, 30 November 1921, Page 6

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