Lord Campbellasked the noble Earl at the head of the Board of Trade whether, according to the existing law, the practice of one railway company buying up other projected railways could be prevented; and if not, whether it was the intention of Government to introduce any measure to put a stop to that practice?
The Earl of Dalhousiesaid, that no doubt could be entertained of the fact that projected lines of railway were bought up by existing companies. The advantages of amalgamation were sometimes very great; and sometimes the transaction was detrimental to the public interest. The Legislature, however, closely investigated all such transactions when the Bills came before the Houses of Parliament. As to the state of the existing law, the Board of Trade certainly had the power, under the Act of 1844, to interfere in such transactions in any case in which they thought that the interests of the public would be affected injuriously. He had submitted the case to the Law Officers of the Crown, whose opinion was, that such purchases were not legal. Notices were accordingly given to the railway companies, who would have to meet the case against them. He believed the law was sufficient to reach them; but if not, the Government would make it a duty to put the law into such a state as to slop the abuses complained of.