§ 28. Mr. REMERasked the President of the Board of Trade, if he is aware that the American Telegraph and Telephone Company and the Western Electric group have, by subsidiary companies, recently obtained control of the Gaumont British Picture Corporation and are Americanising the entertainment industry in this country; and if he will include a suitable Amendment in the Companies Acts to prevent undisclosed foreign control of companies and to make effective provisions in articles of association designed to that end, as were lately inserted in the articles of association of the Gaumont British Picture Company?
30. Mr. WEST RUSSELLasked the President of the Board of Trade whether the Gaumont British Picture Corporation, Limited, controlling the making of films and owning the General Theatre Corporation and the chain of theatres called the Provincial Cinema Theatres is a British or an American controlled company; and whether he will introduce legislation to prevent the use of the word British in the title of any public company controlled by non-British capital?
§ Mr. W. GRAHAMI am circulating a statement containing the available information in regard to the holding of the shares in the Gaumont British Picture Corporation, Limited, as disclosed in the records of the Registrar of Companies—also in regard to the restriction of voting rights. The general question of compelling disclosure of the persons who are the beneficial owners of the shares in a company or otherwise in control of the company, as distinct from those whose names are required to be stated in the documents filed with the Registrar, is one of very great, difficulty and in the present condition of Parliamentary business it would not be possible to find time for the consideration of legislation dealing with such a contentious matter.
§ Mr. REMERMay I ask whether the right hon. Gentleman agrees that by their action these two companies are Americanising the British film industry?
§ Mr. GRAHAMI cannot subscribe to that contention, and I should prefer it if the hon. Member will look at the de- 787 tailed statement which I have offered to submit.
§ Mr. DAYIs it not a fact that the majority of picture companies who style themselves as British companies are really American companies?
§ Following is the statement:
§ The annual return dated 10th October, 1930, filed with the Registrar of Companies shows that of the 5,000,000 ordinary shares of the Gaumont British Picture Corporation, Limited, 3,105,000 are held by the Metropolis and Bradford Trust Company, Limited, which is therefore in control of the company. The annual return of the Metropolis and Bradford Trust Company, Limited, dated 5th November, 1930, shows that of the 10,000 A shares which alone carry voting rights 4,950 are held by three persons of British nationality named Ostrer, 4,750 by the United American Investing Corporation, and 300 by three other individuals, but according to a statement issued to the Press by the Gaumont British Picture Corporation it would appear that 200 of these shares represent the American interest already mentioned, leaving 100 shares held by a British subject independently of the other interests. The articles of association of the Gaumont British Picture Corporation, Limited, contain elaborate provisions for securing that voting rights will not be exercised directly or indirectly on behalf of persons of foreign nationality or foreign companies or companies under foreign control. It is open to any company that so desires to include provisions of this kind in its articles.