HC Deb 08 June 1915 vol 72 cc166-7
26. Sir J. D. REES

asked the President of the Board of Trade, whether he is aware that the firm of Custodis, Limited, is building chimney shafts for private companies and for municipal bodies in this country; that this firm took over the goodwill of the business of the Action Gesell-schaft Alphons Custodis, of Dusseldorf, at 119, Victoria Street, under the style of the Alphons Custodis Chimney Construction Company, and that the shareholders are, with three exceptions relating to three shares, Germans; whether he is aware that important contracts, and some with the Government, have been secured by Alphons Custodis Chimney Construction Company and by Custodis, Limited, since the outbreak of War; and whether he will take steps to ensure that this firm shall have no Government work, nor be allowed to compete with English chimney-constructing companies?

The PRESIDENT of the BOARD of TRADE (Mr. Runciman)

The hon. Gentleman has furnished me with information that various contracts for building chimney shafts have been entered into since the outbreak of War with Custodis, Limited. The facts with regard to the shareholders of the Alphons Custodis Chimney Construction Company, Limited, are as stated in the question. Both of these companies are incorporated in this country and are therefore entitled to carry on business here, but I may inform the hon. Gentleman that last October an inspector of the Alphons Custodis Chimney Construction Company, Limited, was appointed by the Board of Trade in accordance with the provisions of the Trading with the Enemy Act in order to satisfy themselves that the company was not trading with the enemy.

Sir J. D. REES

Has this firm any Government contract?

Mr. RUNCIMAN

I cannot answer that.

Sir A. MARKHAM

Is the right hon. Gentleman aware that this company gave the company I am connected with a guarantee that no German capital was involved in it at all, and on the faith of that undertaking, given in writing, I myself gave them an order?

Mr. RUNCIMAN

No, I am not aware of what undertakings had been given by the company. The Board of Trade must be guided purely by the register of shareholders.

Sir A. MARKHAM

Are we to understand that this company is still a German company?

Mr. RUNCIMAN

No, it is an English company, but the majority of shares are held by Germans, and on that account, under the Trading with the Enemy Act, I appointed an inspector.

Sir A. MARKHAM

If I bring to the notice of the right hon. Gentleman the fact that this company has given to firms in this country a statement that the share capital is all held by British shareholders, will he strike them oft' his list, and prevent them taking any further contracts for Government purposes? I have a letter from them.

Mr. RUNCIMAN

I am not sure how far I have statutory powers to cancel contracts entered into by this company. I rather think I have not. But if the hon. Baronet will send me the information he suggests I will inquire into the matter.

Sir J. D. REES

Have they any Government contracts?

Mr. RUNCIMAN

I am afraid I cannot answer that.

Sir J. D. REES

The right hon. Gentleman was asked that question in the question I put down.

Mr. RUNCIMAN

The hon. Member should address that question to the Office of Works, the Admiralty, or the War Office.