“FRAUDULENT BUBBLE”

Sun (Auckland), Volume III, Issue 827, 22 November 1929, Page 9

“FRAUDULENT BUBBLE”

JUDGE CENSURES QUARTERLY DIVIDENDS N.Z. AGENT .SENT TO GAOL .Associaft«»?* INY KIICAKGIL. Toda> Mr. Justice Kennedy sentenced David Neilson Johnston. New Zea lan drepresentative of Quarterly Dividends, Ltd . and National House Purchase. Ltd.. to three months’ hard labour concurrently on* each of six charges of obtain mg money under false pretences. Addressing the prisoner, he said “You have been the representative «>: i two companies whose trickery and i deceptive deposit system was a mere fraudulent bubble. Although your ! representations may have seemed to | an ordinary person a mere deception. ! these representations did in fact d< | ceive persons with little commercial I experience and also person*? wi: .i j commercial training, but who did no* stop to think. “You are a man of Intelligence and education and your past good chara* ter and conduct show that you an in ; your present position through the initial pernicious influence of a man at present, beyond the jurisdiction o. this court. You had. however, ample warnings from individuals who had experience of the system and you w.-vi* heedless of warnings in leading article*, in responsible newspapers. “You will he sentenced. however, merely for those, offences upon aa liii i you were found guilty and will not have to bear the viearious punishment for those responsible for the promo* on of the companies.”