SHARE BROKING CASE.

Gisborne Times, Volume XXVII, Issue 2615, 24 September 1909, Page 5

SHARE BROKING CASE.

DECISION AGAINST BROKER.

[Per Press Association.! AUCKLAND, Sept. 23. Mr Kettle, S.M., gave a reserved decision this morning in the case of A. J. Canning v. William Gruar, claim £135 10s for 500 shares, calls .paid, and interest. Defendant, who was a sharebroker and. jobber, admitted that ■be bought shares not only for his customers, but for himself. He admitted ho put the shares of his client in-his own name, without specifying the number- of shares contrary to sections 2J and 100 of the Companies’ Act. Defendant also admitted that ho had taken transfers in blank, leaving the secretary of the company to fill in any numbers. This was most irregular and dangerous. Defendant purchased 500 Champion shares in January, 1908, for plaintiff at 4s 8d each, 400 numbered, and 100 for himself unnumbered, He apparently held these shares in trust for plaintiff. Oil October 8 plaintiff instructed defendant to sell at 5s 6d. and defendant, on October 9, was offered 5s 6d, but ho did not accept. Defendant stated he consulted Canning, -who withdrew the instructions. This plaintiff denied. The Court was not satisfied that such an arrangement took place. On the 9tli and 10th defendant sold 500 Champion shares, which in the Magistrate s opinion, were shares held by defendant in trust fox. plaintiff. The- shares subsequently fell to little value. Th c Magistrate held that the person lor whom funds were held in trust in such circumstances was entitled to claim the best benefits that could be derived from the transaction. He gave judgment for plaintiff for £137, and damages to be assessed