§ SIR GEORGE CAMPBELLasked the noble Lord the Under Secretary of State for India, Whether six per cent interest has been guaranteed by the Nizam of Hyderabad to the shareholders in the Hyderabad Railway; and, if so, is it a legal transaction?
§ LORD GEORGE HAMILTONSir, the advice which the Secretary of State for India has received regarding the legality of the transactions by which the Nizam of Hyderabad guarantees 6 per cent to the shareholders of the Nizam State Railway applies solely to this Company, and is not extended to any other transactions of a similar nature. The Secretary of State for India, appreciating the importance and policy of the Act of Geo. III., is not inclined in any way to forego the powers of interference which under that Act he possesses. The guarantee applies only to the funds for the construction of the line between Hyderabad and the Great Indian Peninsula Railway.