STOCKBROKERS AND A DIRECTORATE.

Evening Star, Issue 22457, 30 September 1936, Page 12

STOCKBROKERS AND A DIRECTORATE.

TO THB EDITOR. Sir, —As stockbrokers we resent the published statement of Mr A. Wi Coles, Mr F. P. Derham, and the directors of G. J. Coles and Co. Ltd., other than Mr G. J. Coles, that “ Shareholders will be invited to support the original view of the directors that no representative or nominee of any stoekbroking firm should occupy a seat on the directorate. The wisdom .of this view will, we feel sure, be appreciated by every shareholder.” This statement casts a slur on the integrity of the stockbroking profession generally, and our-own resentment is accentuated by the fact that Suggestions have been circulated that the statement is directed against J. B. Were and Son. Wo are at a loss to understand the attitude of Mr A. W. Coles and Mr Derham in view of the following facts:—(l) That Mr Derham asked Mr Staniforth Ricketsou, a partner in this firm, who is a stockbroker and a member of the Stock Exchange of Melbourne, if he would accept a seat on the board. Mr Ricketson refused. (2) When it was suggested that a seat be offered to Mr George Lormer, who is also a stockbroker and a member of the Stock Exchange of Melbourne, Mr A. W. Coles said, “ Why, he is a friend of mine and would be quite acceptable to me,” and both he and Mr Derham readily approved the nomination, (3) If Mr A. W. Coles and Mr F. P. Derham feel so strongly about the eligibility of stockbrokers as directors, why did Mr Derham invito Mr Ricketson, and why did he and Mr A. W. Coles approve of Mr Lormer? Our association with the discussions originated through Mr G. J. Coles seeking our advice, although he was not our client; we assisted him because we recognised the justice of his cause and undoubted integrity. Also, we owed a duty to our clients holding shares in the company to protect their interests. We have not received, nor do we expect to receive, any benefit, financial or otherwise, and a scrutiny of the share register will prove the absurdity of tbe whispered suggestion that we have been seeking to gain control of G. J. Coles and. Co. Ltd. On the. question of self-interest, we may merely point out that the discussions have centred around the question of the fixation of their own remuneration by executivedirectors. —We are, etc., J. B. Were and Son. Melbourne, September 21. . p.s.—Mr Lormer, who is on his way out from England and has taken no part in the recent discussions, withdrew last week, through his attorney, his. nomination for the board.