SHARE PUSHERS

Hawke's Bay Herald-Tribune, Volume 81, Issue 40, 10 November 1937, Page 6

SHARE PUSHERS

Warning Given ' to, Small Investors SOME HF.AVY LOSSES Heavy losses sustained !by .the' pubhc unspired- tha British ',Goyernment..to '.ssue. to the public an ofiicial; warning against " share pushers." The Board oi Trade cireulated the warning. It is diillcult to .form a,n esti- ; mate of losses to the mrblic, but the President of the Board of Trade " Ihought it would be as ■ much ' as £5,000,000. ; • • . : Widows and . clergymen were the most numerous, 0^ the "share pusher's" vlctims. i -One dllllculty of the problem Is, that, ' in some cases, the methods adopted in the beginning are riot fraudulent. The "share pusher" creates a . fee'ling' of confldence. before proceeding to in- - duce. vlctims - to invest ' in worthless concerns. - . The Warning. . Millions of coples of -the • Government warning have been distrihuted, the Board of -Trade • supplying' coples to Ihe Post OfSce Savings Bank, .the Money Order Department,, tru'stess saving banks, joint stock banks.-'and national organisations. It is hoped by' this means to reach all classes of investors, including, in particulaF, those possessed ' of comparatively small means. Members of " the public have been sustaining substantial losses owing to Ihe activities of fraudulent share, vendors. The warning slates that the Government intends to take all possible steps to curb these. activities..

A 'strong and representative committee, recently a.ppointed under the chairmanship of Sir Archibald Bodkin, lalely Director of Public Prosecutions, is engaged in a comprehensive review .of the methods employed in perpetuating these frauds. The committee Will put forward as soon as possible its recommendations in regard to additional safeguards for the investor.-..' The usual method-adopted- by "share pushers," states the warning, is -to send out circulars offering opportunities for Jnvestment which appear-at-tractive and profllable. They may offer advice as to the investment of money in stocks, shares, .or debentures of particular companies or "pools" or.s " options" in shares or commodities. Holders of safe investments are invited to sell their seourities and lnv'est the proceeds In other securities which are alleged to bring in a much greater yield. The ciroulars are. often associated with periodjcal ■ "flnanoial reviews" or "market reports" which pratend to assess the - prospects of varfous investments, some of which may be sound but otlxers worthless. Persons receivlnig 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 why -may call upon' ,them." ' " Cruel, Hcartless Frauds."

1 Attention is direcled to recent, remarks of Mr Justice Finlay in passing' senteiice upon certain share pushers. T Mr Justice Plnlay said he wished. his. Yvords couid be hgard in every house in the cquntry- '.These cruel and beartless frauds liad , been rendered possible by the fact that tke publio had been willing to belleve the things said to them. If only when they received circulars of this sort they would consign them to the only proper place — -the wastepaper basket— and if they would only take advice with regard *to their investments from their bank1 ers or members of the Stock Exchange, this sort of fraud would cease' to exist, because. it would cease to *be uroiltable. . -. -