EX-GOVERNORS AND COMPANIES.

New Zealand Herald, Volume XLIV, Issue 13451, 30 May 1907, Page 6

EX-GOVERNORS AND COMPANIES.

THE ETHICS OF COMPANY ' : ■:■:■ ' PROMOTION. The Secretary of State for the Colonies has sent the following despatch to the Governments of all British colonies:— " Dowuing-street, February 15, 1907. "Sir, —I have the honour to inform you that during the past session questions have been put in the House of Commons with regard to certain cases in which ' ex-Gover-nora. of colonies have taken a prominent part in the organisation or direction of companies formed to operate in territories which - they were recently administering. The publicity which has thus been given to these cases a.nd the public comments which have been mode upon them make it desirable that I should, without suggesting any impropriety in the action of those concerned, express my personal opinion with regard to such commercial ventures. "I have every reason to believe that the strongest motive which actuates a former Governor in engaging in a commercial enterprise in a colony with which he has been connected is that he feels assured, from his intimate knowledge of the whole circum-; stances) that there are opportunities for, development which will benefit the colony, j and, that it is incumbent on him not to refuse to give the enterprise the support which his name and reputation must carry with it. A secondary motive, perfectly legitimate and honourable, may be that the enterprise may prove successful and cooperation in it remunerative. ' "At the same time. I cannot help feeling that retired Governors' would be well ad-, vised in most cases to refrain from taking a' prominent , part in the management of! companies which arc formed to develop for iprofit the natural resources of the territories which they have administered. I shall always be readv and anxious to defend the 1 conduct. of those who have given years of arduous and devoted work to the Empire; but the strongest and best-merited defence cannot always. remove a false impression made by reflections cast on them; , and I think myself, therefore, entitled, in the interests of the State and of the colonial service, to draw the attention of officers administering the government of colonies or protectorates to the necessity for earnest consideration before taking part in any commercial undertaking of such a character.—lhave, etc., Elgin." . . I