§ 23. Mr. DAVID GRENFELLasked the President of the Board of Trade whether he is aware that large numbers of shares in James and Shakespeare were held by nominee companies formed by the banks, and did not represent investments by the banks concerned; whether he will request that the investigation into the affairs of the aforementioned company shall call for the particulars of persons owning the shares standing in the names of the four nominee companies who would have profited from the pepper gamble if it had succeeded; and whether arrangements will be made, if possible, that those persons should make compensation to those who have been ruined by the speculations in which they were innocently involved?
§ 26. Mr. JOHN WILMOTasked the President of the Board of Trade whether he is aware that a winding-up order has 166 been made against Messrs. James and Shakespeare, Limited; and whether, in view of the circumstances connected with this company and the recent pepper-pool operations, he will cause an inquiry to be made?
§ Mr. RUNCIMANI would refer the hon. Members to the answer given yesterday by my hon. Friend the Financial Secretary to the Treasury to the hon. Member for the Gower Division of Glamorganshire (Mr. D. Grenfell).
§ Mr. WILMOTIs the right hon. Gentleman satisfied that the powers of the Official Receiver under Section 182 of the Companies Act are sufficiently wide to enable him to make an inquiry into matters of grave public moment not immediately connected with this particular company; and is it not a fact that the Official Receiver will be limited to inquiries concerned with the promotion and conduct of this particular company and will not be able to inquire into the very grave matters concerned with commodity speculation in other companies and concerns?
§ Mr. RUNCIMANI believe that the hon. Gentleman has a question down to that effect a little later on the Order Paper—No. 50.
§ Mr. GRENFELLThe answer given to me yesterday did not cover the second point in the question. Will the right hon. Gentleman therefore inform the House whether the investigators will call for the names of persons to whom reference is made?
§ Mr. RUNCIMANVery wide powers are given in the course of compulsory winding-up, and reports will be made to and by the Official Receiver.
§ 47. Sir CYRIL COBBasked the Chancellor of the Exchequer whether, after the experiences of the public arising from the action of so-called stags in relation to Stock Exchange flotations and of speculators in the produce market, and as the Government have no control over the continuously repeated abuses in these markets, he will introduce legislation to place the Stock Exchange and the Mincing Lane market under charters, not for the purpose of controlling speculation, but for the normal protection of the public?
The CHANCELLOR of the EX-CHEQUER (Mr. Chamberlain)As regards the recent attempt to corner a. commodity, I would refer my hon. Friend to the answer given yesterday to the hon. Member for Gower (Mr. D. Grenfell). With regard to other forms of speculation, I am content to leave it to the authorities concerned to take any measures that may be practicable in the public interest to prevent abuses in matters under their control.
§ Sir PERCY HARRISIn regard to the latter part of the question, will the right hon. Gentleman consider whether it is possible to give charters to these excellent organisations in order that they may control dealings in the public interest?
Mr. CHAMBERLAINIf the hon. Member will look at the answer given yesterday, he will see that there is a prospect of an inquiry, and it would be premature to consider other steps before that inquiry has been held.
§ Sir P. HARRISThe answer given yesterday was in reference to gambling in regard to one particular article. This is a much larger question; that charters should be given to these organisations so as to give them control. It is a rather larger issue than the gambling which has been going on recently.
Mr. CHAMBERLAINI agree that it is a larger issue, but it arises out of a particular instance, and I would like to see what happens in this particular instance before considering whether it is desirable or necessary to go further in the matter.
§ 50. Mr. WILMOTasked the Chancellor of the Exchequer whether he proposes to take any action to prevent joint stock banks becoming involved in transactions similar to the recent pepper-pool operations?
Mr. CHAMBERLAINI think the hon. Member is under a misapprehension. It is entirely contrary to the banking practice of this country for a joint stock bank to speculate in commodities, and I have no reason to assume that any of the banks did so on this occasion.
§ 51. Mr. WILMOTasked the Chancellor of the Exchequer whether he proposes to take any action to prevent a recurrence in other commodity markets of the recent 168 pepper operations which have had such grave financial results in the city of London?
Mr. CHAMBERLAINI would refer the hon. Member to the Answer given yesterday to the hon. Member for Gower (Mr. D. Grenfell).
§ Mr. WILMOTI presume the right hon. Gentleman refers to the investigation by the Official Receiver. I should like to ask him whether the Official Receiver has sufficient scope in his inquiry to deal with the matters raised in this question?
§ Mr. WILMOTWill the right hon. Gentleman consider the wisdom in the public interests of causing an inquiry to be made into this grave public matter, which is giving rise to a great deal of misgiving, especially with regard to the connection between certain persons involved in the recent commodity speculations and persons involved in other commodity pools, for instance, tin, to which his colleague has referred.