§
"DISSENTIENT:
1. Because in this Bill it is for the first time proposed to create peference capital for making a new railway by a new company.
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2. Because the capital is to consist of 200,000l. in shares and 100,000l. in borrowed money. Of the former a dividend of 5 per cent. is guaranteed by baronies and landowners on 72,800l., and of the remaining 127,200l., 50,000l. is to be issued with a preference, leaving 77,200l. ordinary share capital which will not be entitled to receive anything until full dividends as agreed upon have been paid from the net income of the concern on 222,800l.
3. Because the estimate for the construction of the line being 223,610l. independent of the costs, charges," and expenses incident to the preparing for obtaining and passing of this Act or otherwise in relation thereto, the aforesaid sum will not be sufficient to complete the same.
4. Because the character of the undertaking being such as to render it necessary to start it by issuing part of its capital with a preference, it must be taken as admitted that the company have little expectation of finding customers for ordinary share capital, and, consequently, that when the preference capital has been exhausted they will have to apply to Parliament for new powers to make the remainder of the capital marketable.
5. Because this can only be done by a grant of preferential share capital, or by extended borrowing powers, the dividends on which must take precedence over those which the Bill proposes to secure to the preference shares under it.
6. Because, under these circumstances, the capital which persons will have been induced to take, believing it to have a preference secured to it, will no longer hold that position, and Parliament, by allowing the issue of such shares in a first Bill, will have deluded persons into subscribing to an investment under a deceptive name.
7. Because, as this preference capital is to have priority over that which is to be guaranteed by the baronies and landowners, any capital created by pre-preference shares or additional borrowed money must also have precedence over that so guaranteed, or it will have no preference over anything, and the baronies and landowners will thus become subjected to a liability not contemplated by them when they agreed to the guarantee.
8. Because Parliament ought not to sanction any measure for the construction of a railway which does not appear to afford the means for completing the same, and the clear inadequacy of the provisions of this Bill to secure subscription for all the capital the company consider it necessary to apply for renders its adoption by Parliament objectionable.
§ "REDESDALE."