§ Mr. BECKERasked the Parliamentary Secretary to the Overseas Trade Department if his attention has been called to the capital of the Newfoundland Power and Paper Company, Limited, which is stated to be 21,000,000 dollars, all of which has been issued; what amount has been issued for cash; what other consideration, if any, has passed to make up the balance of this capital; has any money been paid to promoters or has any provision been made in the new company for such payments; has the Newfoundland portion of the loan been underwritten by responsible persons; who will benefit when the debenture stock is paid off; and, if this issue is not successfully floated, whether the Government will withdraw their guarantee?
§ Sir W. JOYNSON-HICKSThe whole of the 21,000,000 dollars share capital of the Newfoundland Power and Paper Company, Limited, is represented by extensive timber properties, land, water and other rights, in respect of which substantial sums have been paid and expended. No cash has been paid to promoters as such nor has any provision been made by the company for such payments. The Newfoundland portion of the loan was underwritten by responsible persons, and has already been issued and over-subscribed. When the debenture stock is paid off by means of the sinking fund provided out of the profits of the company, the Government will benefit through being relieved of the liability of implementing its guarantee and the company themselves will benefit by being free of the mortgage.
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§ Mr. BECKERasked the Parliamentary Secretary to the Overseas Trade Department if the issue of 4½ per cent. A Mortgage Debenture Stock of the Newfoundland Power and Paper Company, Limited, received his sanction; what are the past trading results of this company; will he state, as this is a Government guaranteed stock, who are the directors of this company; has any business been conducted since 1915; and, if so, with what results?
§ Sir W. JOYNSON-HICKSThe decision to guarantee the issue of 4½ A Mortgage Debenture Stock of the Newfoundland Power and Paper Company, Limited, was arrived at by the Treasury on the advice of the Advisory Committee set up under the Trade Facilities Act in circumstances which were explained at length to the House by me on the 5th December last. The company was incorporated during the War under the name of the Newfoundland Products Corporation, Limited, for the purpose of acquiring certain water rights, timber limits, etc., with a view to their ultimate development. It has not traded since incorporation, nor will it be in a position to do so until the proposed works for which the recent issues were made are completed. There are, therefore, no past trading results. As regards the third part of the question, I would refer my hon. Friend to my answer of the 24th July to the hon. Member for the East Division of Birkenhead (Mr. G. White).