HC Deb 11 July 1917 vol 95 cc1908-9
56. Mr. PRINGLE

asked the Prime Minister whether the firm of Mitchelson and Company, outside stockbrokers, have been issuing circulars advising purchases of shares in companies making a profit out of the War; whether the firm is sometimes a limited company and sometimes a private firm, but that in each case the name of Lord Rhondda appears in the circular; whether Lord Rhondda is still a partner; if not, at what date did he sever his connection with the firm; whether he approves of Ministers holding Cabinet rank allowing their names to appear on circulars of that description; and what steps he proposes to take?

Mr. BONAR LAW

My Noble Friend desires me to say that he was never a director of Mitchelson. Limited, but that he has for some time been a sleeping partner in the private firm of A. Mitchelson and Company, who carry on the business conducted for a time by Mitchelson, Limited. It was necessary, under the Registration of Business Names Act, which was recently passed, that my Noble Friend's name should appeal as one of the partners. On accepting the office of Food Controller he decided to retire from the partnership, and arrangements have been made to give immediate effect to this decision.

Mr. S. MacNEILL

Does the rule established by Sir Henry Campbell-Bannerman and insisted upon by the late Prime Minister still obtain, that members of the Government should not be directors of public companies; and is not this practically a directorship of a public company?

Mr. BONAR LAW

No. The rule adopted under Sir Henry Campbell-Bannerman's Government still applies that they shall not be directors of public companies, but it was clearly understood that they were not necessarily to retire from private business in which they were engaged.

Mr. MacNEILL

This is at one time a limited company and at another a private business, according to circumstances.

Mr. BONAR LAW

Not according to circumstances. I have no information except what I have just read out. My Noble Friend says he was merely a sleeping partner in it.

Mr. MacNEILL

Make him a waking one!

Sir F. BANBURY

Can my right hon. Friend say why, when one of the circulars was headed "Mitchelson, Limited," the name of Lord Rhondda appeared on that circular, and whether it is not a fact that at the time there was no Act dealing with limited companies, and therefore it was unnecessary for the name to appear?

Mr. BONAR LAW

I cannot answer that question, because I do not know the dates.

Sir F. BANBURY

I will show you the document.

Sir J. JARDINE

Does that rule also apply in the cases of Scottish judges and members of the Council of India?

Mr. SPEAKER

This House has no control over the Scottish judiciary.