Major BARNESasked the President of the Board of Trade what were the terms of the agreement of the 16th May, 1919, made between the President of the Board of Trade and the trustee of the British Dye Stuffs Corporation; what were the amounts of the advances made and to be made under that agreement; and what was the form of the security taken by the Government?
§ Sir A. GEDDESAn agreement to which my hon. and gallant Friend refers provided for the formation of the British Dye Stuffs Corporation, Limited, and for the advance to that company (subject to certain conditions) of the sum of £530,420, being the outstanding part of a total sum of £1,700,000 which His Majesty's Government had undertaken to advance to British Dyes, Limited, in which the new company was acquiring a controlling interest. The agreement also imposed conditions as to the articles of association of the British Dye Stuffs Corporation, Limited, British Dyes, Limited, and Levinstein, Limited, so as to secure permanent British control of the three companies, and to give the Board of Trade supervision over the prices charged for, and the distribution of, the companies' products. The restriction previously imposed upon the rate of dividend payable on the share capital of British Dyes, Limited, was removed. The Government advances were secured by debentures issued by the three companies. The arrangement was subsequently modified, the Government advance, made with the intention of fostering the British dye industry, taking the form of a subscription for 850,000 £1 preference shares and 850,000 £1 preferred ordinary shares in British Dye Stuffs Corporation, Limited.