§ 62. Major BOWDENasked the Minister of Munitions if he will state on what terms public moneys to the extent of £120,000 have been advanced to the Shropshire, Worcestershire, and Staffordshire Electric Power Company, and also the terms of the further proposed loan of a sum not exceeding £80,000; if he has compared those terms and conditions with those imposed upon local authorities for similar purposes at the present time; and if he will say how they compare?
§ The FINANCIAL SECRETARY to the MINISTRY of MUNITIONS (Sir Worthington Evans)Under an agreement dated the 1st April, 1917, the Minister agreed to advance £100,000 to the Shropshire, Worcestershire, and Staffordshire Electric Power Company on the security of £120,000 of that company's second debenture stock, forming part of an authorised issue of £200,000 second debenture stock. This loan bears interest at the rate of 1 per cent, above current bank rate with a minimum of 5 per cent, per annum, and is repayable by ten equal annual instalments, the first annual instalment to become due and payable on the 1st day of January, 1919. The whole of this loan has now been advanced.
Under an agreement dated 19th January, 1918, carrying out arrangements made in August, 1917, the Minister agreed to advance a further £100,000 to this company on the security of £80,000 of second debenture stock of the Shropshire, Worcestershire, and Staffordshire Electric Power Company, and 311 by the transfer to the Ministry of £40,000 second debenture stock of the Birmingham District Power and Traction Company, Limited, which forms part of an authorised issue of £200,000 second debenture stock. This loan bears interest at 1 per cent, over current bank rate with a minimum of 5 per cent, per annum, and is repayable by fifteen equal annual instalments, the first annual instalment to become due and payable on the 1st day of January, 1920. Of this loan £20,000 has now been advanced. In general the terms and conditions are similar to those arranged with local authorities, but conditions vary, each case being considered on its merits.