SECOND READING. (Hansard, 2 June 1874)

§ MR. FAWCETT
moved, as an Amendment, that the Bill be read a second time that day three months. The way in which this Bill had been dealt with afforded a striking and instructive illustration of the manner in which Indian affairs were managed in that House. The Bill was brought forward last Session as one that might be passed without a moment's consideration, as a mere matter of form. Having gone through the Bill, and finding that it might throw a very important burden on the Indian revenue—a truth which he compelled the officials of the Indian Office to admit—he opposed it, and it was then withdrawn. It was now brought forward again, and, on the same objection being raised, the hon. Member for "Westminster (Mr. W. H. Smith) blandly assured the House that it was merely an Amalgamated Bill, and would cast no burden on the revenue of India. He (Mr. Fawcett) could, however, assure the House that it was a Bill which required the most careful consideration. There was a Schedule referred to in the Resolution under which the Bill was introduced which, instead of being a few lines, after the ordinary manner of Schedules, he was astonished to find consisted of just 29 closely printed foolscap pages, and it took him two mornings' very hard work to understand its complicated provisions. Nothing to his mind could be so disgraceful or discreditable as the way in which these railway contracts were managed in the India Office. In each of the contracts there was a provision that the Government, having guaranteed a certain percentage upon the capital of the companies, should, after a certain lapse of time, become possessors of the property. There was another provision to the effect that the companies should 849 have the right to surrender their property to the Government at the cost price, and so obtain a return of every shilling of capital expended. The Great Southern of India Railway had a contract for 999 years, whereas the Carnatic Railway had only a contract for 99 years. But if the amalgamation scheme were adopted the contract of the last-named company would be extended to 999 years, and at any date during that period of time they could surrender their property and call upon the Government to recoup them for their capital invested. Thus, indirectly, the scheme might lay a great charge upon the revenues of India. Rut it might also involve a direct charge, because part of the scheme was to make a railway from Tanjore to Madras, about 170 miles in length, and if this were carried out the Government might be called upon to guarantee 4¾ or 5 per cent upon a capital of, say, £1,500,000 sterling. The Indian Finance Committee had reported that there was no system so wasteful, so extravagant, so inefficient, as that of guaranteeing 5 per cent on capital expended in railway construction—it swept to the wind every inducement for economical or only proper expenditure; and before the House had decided whether or not the guarantee system should be continued it was scandalous to attempt by a side-wind to obtain so important a guarantee. He wished, therefore, to ask whether, as this Bill would throw a charge upon the revenues of India, it was competent to pass it as a Private Bill, or whether it ought not to be put into the form of a Hybrid Bill or of a Public Bill?

§ MR. SPEAKER
said, that it was perfectly in Order to deal with the measure under consideration as a Private Bill.

§ MR. FAWCETT
said, he would move that the Bill be read a second time on that day three months.

§ LORD GEORGE HAMILTON
, in reply, said, that the hon. Member had assumed as a fact that this Bill would throw additional charges on the revenue of India; but that was not so. Its rejection, on the other hand, would have the effect which the hon. Member for Hackney deprecated, for it would prevent 850 the economy to be effected by the amalgamation proposed. There were three great Railway Companies in the South of India—the Great Southern, the Carnatic, and the Madras—and the Government were anxious for the amalgamation of all these, because the construction of the lines which had been agreed upon would be more cheaply carried out than if the staffs were separate. The Madras Railway Company refused to amalgamate; and last year, after considerable negotiation, the other two were united. If the Great Southern had been incorporated under a general Act like the Carnatic, this Bill would not now have been necessary. These arrangements were made some time ago, and if this Bill were thrown out now those arrangements would still hold good, and the only effect would be that the lines would be constructed at a greater cost, and thus an additional charge would really be thrown upon the revenue of India. The hon. Gentleman had for the last four years been constantly engaged in disputes with the India Office, and protesting against its want of economy; and he (Lord George Hamilton) now asked the House to protect the India Office from the extravagant views of the hon. Member. Under the proposed arrangement the Government would have power to purchase the line in the first instance in 1895, and after that date within six months of the expiration of every 10 years from that date. He had looked into the Bill since his attention had boon called to the subject, and as he had already said the measure was one of an economical nature. It was the sincere desire of the Indian Office to save expense, and, as the line must be constructed under any circumstances if the present proposals were rejected, another scheme involving a larger outlay would have to be adopted.