§ CAPTAIN PRICE (Devonport)
I beg to ask the Under Secretary of State for the Colonies whether, in the agreement for the sale of the Jamaica Government Railway, a clause has been inserted, making it clearly an advantage to the company that failure should result after completion of the line, inasmuch as in that event the Government would have to give the bondholders 3½ per cent Government stock, in lieu of bonds issued probably at 90, and earning a possible interest of 4 per cent, contingent on the profits of the railway?
§ BARON H. DE WORMS
The event in which the Colonial Government would have to give the bondholders Government stock in lieu of their mortgage bonds is the winding up of the company and the forfeiture of their property to the Government. Such an event would not be advantageous to the company, however it might affect the interests of the bondholders. It is calculated that the completed line would be fully worth to the island the amount of Government stock which would have to be assigned to holders of the company's bonds, in the event of the company being wound up.
§ CAPTAIN PRICE
Will the interest on the 3½per cent be payable out of the general revenue of Jamaica, or will it be contingent only on the' profits of the railway?