§ 40. Mr. COMPTONasked the Prime Minister whether he has received a petition from the Lancashire Small Shareholders' Association praying him to appoint a Royal Commission to inquire into certain alleged fraudulent companies recently promoted in connection with the cotton industry in Lancashire; and what action he proposes to take in the matter?
§ The PARLIAMENTARY SECRETARY to the BOARD of TRADE (Sir Burton Chadwick)I have been asked to reply. The answer to the first part of the question is in the affirmative. One of the companies concerned is at present being wound up compulsorily in the Chancery of the County Palatine of Lancaster, and it is accordingly the duty of the Official Receiver to make full inquiry into the causes of the failure of the company and into the circumstances connected with its promotion and formation and the conduct of the business. I propose in the circumstances to await the result of the Official Receiver's inquiries before taking any action in the matter.
§ Mr. COMPTONAm I to assume that, with regard to the statement in the petition to the Prime Minister, if the promoters were prepared to prove that 149 fraudulent companies had been promoted during this period, the Government would then be prepared to take action after the Official Receiver has made his pronouncement?
§ Sir B. CHADWICKAs I said in my answer, we are awaiting the result of the Official Receiver's inquiry.