§ 9. Sir JOHN FERGUSONasked the President of the Board of Trade whether his attention has been drawn to the sale on the Stock Exchange before allotment of Woolworth shares issued for public subscription; and will he take steps to protect the private investor by making similar sales before allotment in future an offence against the Companies Act and the transactions non-enforceable in law?
§ The PRESIDENT of the BOARD of TRADE (Mr. William Graham)The answer to the first part of the question is in the negative. The hon. Member's suggestion has been noted.
§ Sir J. FERGUSONWill the right hon. Gentleman request the committee of the Stock Exchange to see that this is not 1036 repeated in future, as the matter is of great importance to many investors in this country?
§ Mr. GRAHAMIt is difficult to deal with this matter in an answer to a supplementary question. I think it hardly lies with them. It is due to certain factors outwith their control.
§ Sir J. FERGUSONCould not the same practice be observed with regard to speculative securities, as with Government bonds, in which dealings are not allowed until the allotment has been made?
§ Mr. GRAHAMI should require to look into that point.
Mr. SAMUELWill the right hon. Gentleman consult the associated Stock Exchanges in the North of England and get their opinions on this matter?
§ Mr. EDEIs the right hon. Gentleman noting these things with a view to introducing at an early date some amendment of the Companies Act, to cover the weaknesses in working which have been disclosed?
§ Mr. GRAHAMYes, in reply to various questions I have told the House that all these suggestions are being noted, provided always it is understood that I am not definitely promising legislation at this stage.
§ Mr. KIRKWOODWould the right hon. Gentleman at the same time keep his eye on Woolworth's, and the working conditions of the workers there?