HC Deb 25 January 1937 vol 319 cc566-7
40. Mr. Johnston

asked the President of the Board of Trade whether, in view of the further evidence supplied to him regarding the affairs of the Building Construction Investment Company, Limited, he is now prepared to take further steps to trace and prosecute the vendors of the shares who traded as V. H. Nash and Company; and whether, with a view to protecting the public in future, he will initiate legislation to have all trading in company shares conducted through the agency of registered stockbrokers who have deposited adequate security for their transactions?

The Parliamentary Secretary to the Board of Trade (Dr. Burgin)

I am informed that the Director of Public Prosecutions is at present conducting proceedings against certain persons in connection with various share-pushing transactions and has under consideration further proceedings of a similar character. I am also informed that certain inquiries are being made, but it would not be in the public interest to make any statement on the subject at present. As regards the second part of the question, this matter is under consideration by the Departmental Committee on Share-pushing.

Mr. Johnston

Is the hon. Gentleman aware of the long time during which his Department and the police have had particulars of these cases before them, and that since the first disappearance in this case—where the directors disappeared—there have been fresh circulars issued appealing for money for this firm?

Dr. Burgin

Yes, Sir.

Mr. Johnston

Is he not prepared to take any steps whatever to protect innocent members of the public from this gang?

Dr. Burgin

Yes, Sir; the Department has set up a Departmental Committee to consider the operation commonly known as share-pushing and share-hawking. That committee is at work, and is presided over by an ex-Director of Public Prosecutions, and evidence is now being taken.

Mr. Johnston

Is the hon. Gentleman not aware that here is a specific case, of which particulars have been given, and that after many months no prosecution has yet taken place?

Dr. Burgin

I refer the hon. Gentleman to my answer. Inquiries are being made by the Director of Public Prosecutions, but it is unwise to say about whom they are being made.