§ MR. VESEY KNOXI beg to ask the Secretary to the Treasury whether the Treasury have received a copy of a resolution of the grand jury of the county and city of Derry relating to the charge for the Letterkenny Railway; and whether he can explain what the effect of the increased traffic due to the Burton Port extension will be upon this charge?
§ MR. HANBURYThe Treasury have received a copy of the resolution referred to. The increased traffic to be derived from the Burton Port extension may be expected to improve the net earnings of the Letterkenny line. The benefit of such improvement will go in part to the Londonderry and Lough Swilly Railway Company, who work the line under an agreement with the Board of Works, terminating in 1917, and partly to the Board of Works towards, redemption of a loan of £50,000, advanced by them in 1880, of which the whole principal and £9,498 arrears of interest were outstanding on the 31st of March last. If the portion of the improved revenue which accrues to the Board of Works under the agreement should be more than sufficient to cover that Board's charges in respect of the loan of £50,000, the balance would be available for reduction of the charge levied upon the guaranteeing areas. But it is only in the event of such surplus revenue being earned that those areas can derive any benefit from the increase of traffic, because the loan of £35,000, for which the guarantee was given, has only the second charge upon the net receipts.