THE SHARE-SALESMAN

Sun (Auckland), Volume II, Issue 534, 11 December 1928, Page 14

THE SHARE-SALESMAN

CONTROL ADVOCATED ’CHANGE CHAIRMAN’S VIEWS The tactics of a certain class of share-salesman were condemned by Mr. G. C. Creagh, chairman of the Auckland Stock Exchange, at the annual meeting of the association held to-day. He advocated legislation for the control of their operations. The spread of the investing habit had brought in its train an evil of considerable proportions, said Mr. Creagli. In short, the great increase in the number of inexperienced investors and would-be investors had presented the share-swindler with a golden opportunity to exercise his detestable calling, and experience showed, particularly in Britain and America, that he has taken full advantage of it. Many small investors had been robbed of their life savings. Bond salesmen toured the country, calling from door to door. They painted glowing pictures of the fortunes to be made by dealing in stocks and sliares, and in particular by buying those which they have in their bags. In this way people are induced to part with their hard-won savings. It is true that they received the shares, but more often than not these turned out to be worth no more than the intrinsic value of the paper on which they were printed. In Britain and America an attempt had been made to deal with this social evil. In Britain, for instance, a Bill was now under consideration by Parliament which aimed at placing greater obstacles in the path of the shareswindler. It would absolutely prohibit the offering of shares from door to door. There were stringent regulations governing the offering of securities through the post; only stocks which were officially quoted on the London Stock Exchange might be so offered. Moreover, the Bill proposed to protect the investor by ensuring fuller information regarding a company, especially in a prospectus. Similar legislation was contemplated in Australia.