HC Deb 17 November 1893 vol 18 cc1144-5
MR. LABOUCHERE (Northampton)

I beg to ask the Under Secretary of State for the Colonies whether his attention has been drawn to the fact that the Chartered Company of South Africa has advertised a meeting at which the shareholders of the Company are to be asked to double its capital by the purchase from its founders and promoters of that portion of contingent profits from concessions conferred by Royal Charter which they reserved to themselves; whether he is aware that, prior to a Charter being granted, the value of the concessions was estimated by the promoters and founders themselves as worth £92,200; and whether, in view of the fact that the Company is in possession of a Royal Charter, and that this Charter lays down rules in regard to its capital, and that the possession by a Company of a Royal Charter leads to the impression that Governmental supervision is exercised in respect to the bona fides of its financial arrangements, and that this impression is confirmed owing to a Chartered Company not being obliged to make the usual Returns to Somerset House, Her Majesty's Government contemplate giving their consent to the creation of this vast number of founders' and promoters' shares, in respect to which no monetary payment has been made, but which will rank, should the arrangement be permitted, with the shares of the Company on which payment in cash equal to face value has been made?

THE UNDER SECRETARY OF STATE FOR THE COLONIES (Mr. S. BUXTON,) Tower Hamlets, Poplar

My attention has been drawn to the advertisement mentioned in the first paragraph of my hon. Friend's question. The assumption involved in the second paragraph has been more than once denied on behalf of the founders and promoters. Without expressing any opinion on the assumptions contained in the third question—and I must be allowed to remark that my hon. Friend's questions in regard to Matabeleland and to the Chartered Company abound in unproved assumptions—I may say that the creation of fresh capital for the purpose of the purchase by the Chartered Company of the interest of the United Concessions Company—amounting to one-half the net profits of the concern—does not appear to violate any of the Articles of the Charier, does not, require the assent of Her Majesty's Government, and seems to be one primarily for the Shareholders of the two Companies.

MR. LABOUCHERE

Will the hon. Gentleman point out what unfounded assumption there is in the question which I have asked?

MR. S. BUXTON

Hon. Members who read the question will find that it contains a great many assumptions.

MR. LABOUCHERE

But what are the "unfounded" assumptions?

MR. S. BUXTON

I said "unproved."