HC Deb 23 March 1925 vol 182 c43
93. Sir FRANK SANDERSON

asked the Minister of Transport whether he is aware that the London and North Eastern Railway Company has issued £6,000,000 of further capital in respect of expenditure on capital account incurred, or to be incurred, since the 1st January, 1913, and not included in the capital expenditure forming the basis on which interest was allowed at the end of the period curing which the Government was in possession, although the company had on the 1st January, 1925, nearly £7,000,000 of cash in hand and also investments in Government securities to an amount of nearly £13,000,000, making a total of nearly £20,000,000 of liquid assets, and although the contemplated expenditure for the year 1925 is only about £1,375,000, and that this £6,000,000 of new capital has been raised in consequence of the recent decision of the Court of Appeal, which makes it necessary that the railway company, which already has large liquid funds, should increase its capital in order to secure their proper standard revenue; and, as other railway companies may also have to raise unrequired capital for the same reason, whether he proposes so to amend the Railway Act as to prevent large sums of unnecessary capital being raised by railway companies where it is urgently needed for the development of industry and for other purposes where it can be more profitably used?

Colonel ASHLEY

As at present advised I do not contemplate the introduction of legislation to amend the Railways Act.