§ 4. Mr. LUNNasked the Secretary of State for Dominion Affairs whether the question of granting a loan of £40,000 for the development of the timber resources in Labrador to the Labrador Development Company, of which Mr. J. O. Williams is president, has yet been decided; whether he is aware that this Mr. Williams has been four times bankrupt, on the last occasion the deficiency being 380,000 dollars with nothing at all for the creditors; whether the present Trade Commissioner for Newfoundland in 133 London, who was a partner with Mr. Williams in the last-named venture, has any interest in the Labrador Development Company; and whether, before any loan is granted, he will satisfy himself that it is being made to a reputable and sound concern?
Lord STANLEYThe answer to the first part of the question is in the affirmative and to the third part in the negative. As regards the second part, I am informed by the Governor that Mr. Williams has never been declared bankrupt and no bankruptcy proceedings have ever been taken against him or against any companies in which he was concerned, though certain companies with which he was associated went into voluntary liquidation in 1918 and 1926. As regards the last part, the loan has been advanced subject to stringent safeguards, and one of the commissioners has been appointed to represent the Newfoundland Government on the board of the company on conditions which place the Government in effective control of the undertaking during the currency of the loan.
§ Mr. LUNNIf I show the Noble Lord a list that I have from business men in Newfoundland in this matter, will he have further inquiries made?
Lord STANLEYYes. If the hon. Member has any information which is not in our possession, I should be happy to discuss it with him.
§ Mr. T. WILLIAMSIs the Noble Lord aware that the person referred to in the question is no relation to the hon. Member for the Don Valley (Mr. T. Williams)?
§ Mr. HANNONMay I ask the Noble Lord whether it is not a very serious matter to put a question of this kind on the Order Paper affecting the credit of a particular individual who, in point of fact, is not a bankrupt at all?
§ Mr. THORNEIs it impossible to give the terms of the loan?
§ Mr. THORNEYou may, but I do not.
Lord STANLEYWe are satisfied. The position is that over 80 per cent. of the 134 shares of this Company have been transferred to the Government as security for the loan, in addition to almost the whole of the shares in J. O. Williams, Ltd., of Cardiff. One of the commissioners has been appointed with very wide powers, which gives the Government effective control of the undertaking, including the remuneration of the management and the declaration of dividend.
§ Mr. LUNNIf I can produce letters from business men in Newfoundland showing that there is something in this question, am I not justified in putting the question?
§ Mr. HANNONOn a point of Order. Is it not a fact that when hon. Members put questions on the Order Paper they make themselves responsible for the accuracy of the information embodied in the question, and is it not essential that the hon. Member should be quite satisfied that a statement of this kind is a matter of fact?
§ Captain PETER MACDONALDIn view of the statement made by the Under-Secretary, surely the hon. Member will apologise to the House and withdraw the statement made in the allegation, which casts a reflection on a man who is in Government employment. It is a very serious matter.
§ Mr. LUNNOn the point of Order. I suppose it is usual to put questions down upon information supplied from a Dominion, and as I have the information there is no necessity for me to apologise. I can supply the information to the noble Lord.
§ Mr. SPEAKEROn the point of Order. There is a Rule of the House that when an hon. Member makes a statement in a question he holds himself responsible for the accuracy of the statement.