§ 29. Mr. RHYS DAVIESasked the Prime Minister whether, in view of the prevalence of fraudulent practices in business, as proved by oases recently before the courts, he will consider setting up a Royal Commission to inquire into the extent of these practices and the part played by banks in such transactions, and with a view to suggesting measures for providing for a more complete disclosure of transactions by public companies and for a greater control over new capital issues in order to protect the investor against fraudulent flotations?
§ Mr. BALDWINI am not aware of any circumstances connected with recent cases before the courts which call for the appointment of a Royal Commission. In my view the existing law is sufficient to deal with fraudulent practices such as the hon. Member has in mind.
§ Mr. DAVIESIs the right hon. Gentleman aware that in a very large number of cases comparatively poor people have lost all their savings by putting money into these fraudulent flotations?
§ Mr. MACQUISTENIf any Royal Commission is appointed, will the right hon. Gentleman include co-operative societies within the scope of its reference?
§ Mr. T. WILLIAMSIs the right hon. Gentleman aware of the reply given by the Attorney-General recently in which the right hon. and learned Gentleman agreed that someone ought to be dealt with in connection with the Kreuger business, but that he had no power; and does he not think that in such cases the Government ought to take power?
§ Mr. BALDWINI was not aware of that reply, but it would hardly justify the setting up of a Royal Commission.
§ Mr. WILLIAMSIs the right hon. Gentleman not aware that as a result of appeals to take such shares made to investors all over the country large sums of money have been lost and that the Government have no power to deal with those persons who push shares.