"WILD CAT SCHEMES"

Evening Post, Volume CVIII, Issue 134, 3 December 1929, Page 14

"WILD CAT SCHEMES"

AN OFFICIAL WARNING

Mr. Wynn Jvirkby, chairman of the Wellington btock Exchange, at the annual meeting of that, body referred to the prospects for the coming export season, which are not co bright as for the past season, but with increased production should show up tairly well, though money appears likely to.be less plentiful for investment. Money T u SeV n f bundant suPPl}', as instanced by the huge deposits held by the banks, etc. ,

Ihe amount on fixed deposit with the banks, bavmgs Banks deposit companies etc., now totals nearly 100 millions, and it is a matter of some surprise that a part of this does not find its way into share investment, as it undoubtedly would it the principles of sound share investment were better known. The banks "are at present finding fairly full outlet for the investment of their deposits, and are not overburdened with a surplus of deposits as they were a year ago. "The share hawker is still in evidence," said Mr. Kirkby, "and will continue so until the Government amends the Companies Act on the lines of the English Act to make share-hawking illegal. The Stock Exchanges have made representations to the Government on this, but so far nothing has been done, and it is a matter of seriolis regret that there should be such delay on so vital a matter. "Quite recently action was taken in a case of flagrant misrepresentation in a scheme, which though plausible, was quite unsound, and the promoter is now paying the penalty. This only shows that members should do their best to educate the public in the principles of sound share investment, and assist to broadcast the warning against hasty investment in untried ventures without thorough investigation, and that the investor should consult a member of a Stock Exchange, whose experience and standing is a safeguard against enticement into wild cat schemes." Mr. R. Wynn Kirkby was re-elected chairman, and Mr. W. F. Sloman vicechairman, and Messrs. A. Hamilton, J. Martyn Hume, and A. L. Warburton members of the committee.