SHARE PUSHERS

Evening Post, Volume CXXIII, Issue 135, 9 June 1937, Page 14

SHARE PUSHERS

THE PUBLIC WARNED

LOSSES OF SMALL INVESTORS

Heavy losses sustained by the, public inspired the British Government to issue to the public an official warning against "share pushers." The Board of Trade circulated the warning. It is difficult to form an estimate of losses to the public, but the President of the Board of Trade thought it would be as much as £5.000,000. Widows and clergymen 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 beginning1 are not fraudulent. The 'share pusher" creates a feeling of conidence before proceeding to induce victims to invest in worthless concerns. THE WARNING. Millions of copies uf the Government warning have been distributed, the Board of Trade supplying copies to the Post Office Savings Bank, the Money Order Department, trustees savings banks, joint stock banks, and na:ional organisations. It is hoped by this means to reach all classes of investors, including, in particular, those possessed of comparatively small means. Members of the public have been sustaining substantial losses' owing to the activities of. fraudulent share venders. 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 Public Prosecutions, is engaged in a comprehensive review of the methods employed in perpetrating these frauds. The committee will put forward as soon as possible its recommendations in regard to additional safeguards for the investor. METHODS OF "PUSHERS." The usual method adopted by "share pushers," states the warning, is to send put 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" in shares or commodities. Holders of safe investments are invited to sell their securities and invest the proceeds in other securities which are alleged to bring in a much,greater yield. The circulars are often assoviaed with periodical "financial reviews" or "market reports" which pretend to assess the prospects of vanpus 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 who may call upon them." "CRUEL AND HEARTLESS." 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 everj house in the country. These cruel ana 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 waitepaper 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.