CLAUSE 2.—(Power to Inspect Books and Documents.) (Hansard, 10 September 1914)

§ Mr. POLLOCK
I beg to move, in Subsection (2) paragraph (c), after the word "were," to insert the words "or had been before the 5th August, 1914."
I want to cover the case where the firm or company, although they have been acting, may have endeavoured to cover up that fact by cancelling the agency. I want to strengthen the Clause by introducing these words. We may get a real agency of a particular kind, and no agent should be able to change the agency by terminating it or pretending that the situation had not existed, which is precisely the state of things we want to get at.

§ Sir J. SIMON
I doubt whether the words suggested by my hon. and learned Friend are an improvement, and I think they would have rather a narrowing effect. Before the War began you might have a firm notoriously the agent for some foreign firm, and it might be very proper for the Board of Trade to say that that was the state of affairs before the War began, and that that ought to justify us in investigating their books now.

§ Mr. POLLOCK
I quite accept what the Attorney-General has said, and ask leave to withdraw my Amendment.

§ Mr. J. M. HENDERSON
I beg to move, in Sub-section (2), after the word "information" ["with respect to the business or trade of that firm or company to give that information"], to add the words "in the case of a firm or limited company where more than two-thirds of the capital issued or of the directorate of the company immediately before or at any time since the commencement of the present War was held by or consisted of persons who were subjects of, or resident or carrying on business in, a state for the time being at war with His Majesty the Board of Trade may appoint an administrator whose duty it shall be to see that the business is carried on without danger to this country."
I do not want to do away with work for anybody, but I feel that where a company is entirely foreign and alien, where it is all directed by an alien enemy, there ought to be someone to see that the business is carried on without any risk or danger to this country from the fact of the governing body and the initiation of the work of the company originating in an enemy country. The Amendment is designed to see that nothing inimical to the interests of this country is carried on. That is all I want.

§ Sir J. SIMON
I hope that my hon. Friend will think that the Bill as it stands goes far enough. I really do not think it is right that we should go further at the moment. I have already pointed out 719 that it is possible for us, under the Alien Restrictions Act, to make Orders beyond the Orders that have already been made in the case of banks if it becomes necessary. We propose, in Clause 3, to take powers in certain cases to ask that a receiver should be appointed, and, while I am most anxious to consider the large question which my hon. Friend has raised, and, indeed, it is being considered, I think in a Bill which primarily deals with penalties against trading with the enemy we should not suddenly throw upon the Board of Trade what might practically amount to the public duty of managing every enterprise in this country which has got a predominating foreign directorate or shareholders' list. That is a very considerable addition to add to the work of any Department. If it becomes necessary, I am sure the Department will undertake it, but it is better that we should deal with the matter as far as we can plainly see light at present, and that we should not rather rashly and hastily confer upon the Board of Trade a power which will certainly come to be regarded by many people as an absolute duty to manage a great number of businesses which are very much better managed by the people who have been accustomed to manage them. Surely the real thing is to take adequate measures to prevent any enterprise in this country, such as my hon. Friend is thinking of, from having any communication with, or from contributing to the strength of, the enemy so long as the War lasts; and that, I think, is clearly and abundantly secured.

§ Mr. J. M. HENDERSON
I do not wish to delay the proceedings on this Bill, but I really want to emphasise that which I think the Government are not aware of, or that which at all events they do not take particularly to heart. There is one of these companies that had up to recent times a wireless station at their works, and for one and a half hours they communicated directly with Berlin every day. We know perfectly well that our enemy is unscrupulous, and all I want to be protected against is any machination of which you would not be able to get evidence by any company. The Attorney-General tells us that they are seriously considering the matter and that it comes 720 under the Alien Restrictions Act. If my right hon. and learned Friend assures me that they are carefully considering the question of applying this principle of the Alien Restrictions Act to companies other than the bank, I am content to withdraw my Amendment, because all I want is that this country should be protected against any machinations conducted—and they are quite capable of conducting them—by people living abroad who have complete control of companies in this country.

§ Sir J. SIMON
I am very glad to be able to give my hon. Friend that assurance. My right hon. Friend the President of the Board of Trade in recent days, in answer to questions, has said that the attention of the Board was being given to this matter, and I can say from my own experience in connection with the Trading with the Enemy Committee that if we are not aware of the subject it is not for want of communications from persons to whom it has occurred that it might be an important thing.