§ 42. Mr. GINNELLasked the President of the Board of Trade if he will state from the latest returns of the National Standard Life Assurance Corporation and of the Law Integrity Insurance Company, respectively, the nominal capital, paid-up capital, total receipts, and total expenditure since formation; present liabilities and net assets, exclusive of establishment and organising expenses and of statutory deposit; the total spent on establishment and organising; the total received from each company by F. C. Norman; whether, since the attention of the Board was directed to this person's conduct it has taken note of judicial comments on that conduct; what amount of assets these two companies profess on their canvassing literature to possess; how the percentage of income spent by them on establishment and organising compares with the percentage of income spent for a like purpose by any typical solvent insurance company; whether it is the practice of solvent companies to represent such expenditure as an asset and use it as such for canvassing purposes; whether the Board makes any representations to companies thus using bogus assets, or to auditors who certify that practice correct; and, if the Board's powers are inadequate for protecting the public against such practices, whether he will apply to Parliament for further powers?
§ Mr. BURNSThe only information which the Board of Trade have relating to the accounts of the National Standard Life Assurance Corporation, Limited, and the Law Integrity Insurance Company, Limited, is contained in the returns filed under the Assurance Companies Act, 1909, to which I would refer the hon. Member for any details of the accounts which he may require, and for any comparison of the figures with those of other companies. The Board are aware of certain judicial comments which were made on the hearing of an application to the Court for sanction to a proposed transfer of the business of the National 540 Standard Life Assurance Corporation, Limited, to another company. The Board have no information as to the amount of assets stated in the canvassing literature of these companies, and they have no power to prevent a company treating money spent on establishing a business as an asset in its balance sheet; but representations are made by the Board of Trade if the certificate required by the Act as to the value of the assets is to the effect that assets of that character are actually of the full value at which they appear in the balance sheet. I do not at present propose to introduce legislation with the view of giving the Board of Trade further powers over insurance companies.
§ Mr. GINNELLThe right hon. Gentleman has not said whether the Board makes representations to auditors who certify these bogus assets?
§ Mr. GINNELLI have asked the question; it is on the Paper.
§ 43. Mr. GINNELLasked the President of the Board of Trade whether he is aware of the practice of certain solicitors and persons trading as professional official receivers, getting the affairs of failing companies, nominally under the control of a Court, but really under their own control, and retaining them there until they have absorbed the assets in fees to themselves; whether he will ascertain and state the amount so appropriated to date by the solicitor and receiver, respectively, from the assets of the Irish Provident Assurance Company; whether he can have the affairs of that company released from their control; and, if unable, whether he will seek statutory powers for dealing with the abuse mentioned?
§ Mr. BURNSI would refer the hon. Member to my answer to a similar question which he asked on the 10th March last. I do not at present propose to introduce legislation to amend the Companies Acts.
§ 44. Mr. GINNELLasked the President of the Board of Trade whether the United Kingdom branch of the Colonial Mutual Life Assurance Society of Australia is worked as a separate company; whether 541 he will state the date to which its latest return has been made up and its financial condition and terms of settlement with insured persons then as compared with 1889; what are the causes to which is attributed its present failure to keep its engagements of that year; why the Board allows this company's agents to use still the circulars of that year as a means of inducing persons to insure; if he will state the law, British or Australian, under which the directors are self-appointed, permanent, self-paid, hold no meetings except of themselves, and render no account except to the Board of Trade; and whether the Board has any power to test the accuracy of statements supplied to it by this company?
§ Mr. BURNSThe United Kingdom branch of the Colonial Mutual Life Assurance Society, Limited, is not a separate company. The latest return made by the society under the Assurance Companies Act, 1909, is made up to the 31st December, 1913, and I would refer the hon. Member to the returns filed by the society, which are open to public inspection, for information as to its financial condition. So far as the Board of Trade are aware, there is no foundation for the suggestion of the hon. Member that this society has failed to meet its engagements, or for the other suggestions which are made in the question. The Board of Trade have no reason to doubt the accuracy of the statements made to them by the society.