COMMITTEE. (Hansard, 15 July 1873)

§ LORD REDESDALE
said, that the object of this Bill was not to make good any genuine losses which might have been incurred on account of unforeseen circumstances, but to meet circumstances to which every trading company was exposed, and its practical effect would be to fix a minimum dividend of 5 per cent. This was a dangerous principle to introduce into legislation with regard to public companies, and he felt bound to caution their Lordships respecting it. He thought that an Amendment should be introduced into some of the clauses which would confine the operation of the Bill to genuine unforeseen losses. With that object in view, he would move in Clause 7, page 2, line 25, after ("where"), to leave out ("with a view to prevent undue loss"), and insert ("upon proof given that notwithstanding the exercise of careful economy in 390 the manufacture of gas loss must arise.") Should that Amendment be accepted, he would further move in lines 26 and 27, to leave out ("or to the prevention of undue accumulation of profits by undertakers"); in line 38, after ("Act"), insert ("such addition being in the opinion of the Board necessary to prevent loss"); and in page 3, lines 1 and 5, to leave out ("five"), and insert ("two").

§ EARL COWPER
said, he did not consider such an Amendment as this necessary. He thought it would not be fair to make companies manufacture gas at reduced profits when the causes of such reduction were no fault of theirs. The proposition was that dividends should be sustained at 5 per cent. Considering that the usual dividend among the shareholders of gas companies was 10 per cent, he did not think this too much of a concession. The public would suffer great inconvenience if these companies, owing to the increased price of materials, suspended operations.

§ LORD REDESDALE
explained that what he objected to was the principle involved.

§ THE MARQUESS OF SALISBURY
would like to extract through the Confessional or otherwise the noble Lord's idea of a shareholder. He appeared to think that the last farthing should be wrung from him, and that he should be allowed no profit. It was only fair that when gas companies had been obliged to give the public the benefit of profits exceeding a certain sum they should be allowed a fair profit when prices altered.