§ 6. Mr. SCRYMGEOURasked the President of the Board of Trade whether he is aware that the Bahamas Trust Company, Limited, 14, Regent Street, London, is offering 100,000 £l shares of the Bahamas International Trading Company, Limited, for the purpose, among others, of smuggling wines, spirits, etc., into the United States of America; and whether he will introduce legislation to prevent a company domiciled in this country from carrying on a trade for the purpose of violating the laws of a friendly country?
§ Sir P. CUNLIFFE-LISTERAs the answer is a very long one, I propose, with the hon. Member's permission, to circulate it in the OFFICIAL REPORT.
§ Mr. SCRYMGEOURI would like to put a question to the right hon. Gentleman on one particular point, namely, is he aware that three of the members of the board of this company are declared in the prospectus to be members of the Legislative Assembly who have succeeded in so bringing about a change in the laws as to enable this smuggling to be a success.
§ Mr. SPEAKERI think the House would prefer that the answer should be read.
§ Sir P. CUNLIFFE-LISTERI wanted to give the fullest information, and not to detain the House, but if the House desire the answer to be read, I shall comply with that request.
I have seen the offer of sale referred to. I have no power to prohibit a company registered in this country from offering for subscription shares in the Bahamas company referred to, but, as my attention has been drawn to this offer, I think it right to say that, so far as any facts are disclosed on the particulars, it does not appear to be a proposal which should command either confidence or support, and I observe that comments in the Press have already been made in a similar sense.
The question, however, raises several problems with which it is not easy to deal in the space of a Parliamentary answer.
In the first place, the only way in which it would be possible to control issues of capital, which are not contrary to the provisions of the Company Law of this country, would be by a general control of all issues. Such administrative control was found to be very disadvantageous to trade and very difficult to operate fairly. The war-time control was consequently abolished. It would clearly require very strong reasons and a very wide consideration of all the issues involved if this policy were to be reconsidered.
Secondly, the question is involved of what particulars should be required in an offer for save which is not a prospectus. 2192 This is a matter which is being considered by the Committee on amendments of the Companies Act.
Thirdly, the Convention concluded between this country and the United States respecting the regulation of the liquor traffic shows the desire of His Majesty's Government, not to encourage, but rather to put down, this trade.
§ Mr. SCRYMGEOURI beg to give notice that, at the first opportunity I intend to raise this matter on the Adjournment.
§ Mr. JOHNSTONIs the right hon. Gentleman aware of the statement in the prospectus—which I hold in my hand— with reference to the good offices of certain members of the board who are also members of the Legislative Assembly, and who have materially assisted in the making of these new laws; and has he drawn the attention or will he draw the attention of the Governor of the Bahamas to this statement that members of the Legislative Council are acting in this manner?
§ Sir P. CUNLIFFE-LISTERI should be obliged if the hon. Member would put down any question of that kind to the Colonial Secretary.
§ Mr. SPEAKERPerhaps the Ron. and gallant Member will put that question down to the Treasury.