(NO. 56.) SECOND READING. (Hansard, 16 April 1888)

§ THE SECRETARY OF STATE FOR INDIA (Viscount CROSS),
in moving that the Bill be now read a second time, said, that the Government had undertaken to pay 5 per cent on £4,000,000 of capital of the Oude and Rohilkund Railway Company for 999 years, but had the option of buying the railway at the end of 20 years. The cost to the country at the present time was 28 lakhs of rupees, but the Government hoped to be able to borrow money at such a rate as would reduce this charge to 22 lakhs, or even less, so that there would be a clear gain of six lakhs a year. The price of this railway was to be fixed at the average price of the stock for three years, and would be £5,036,000. There would be another saving, for, of course, the Government would have to take the liabilities of the Company, and the debentures could be paid off and the money borrowed at a cheaper rate. Thus a further saving of about 3½ lakhs could be effected. The Government also proposed to obtain borrowing powers to the extent of £10,000,000 for the purpose of further railway construction, or the repayment of existing debentures, to carry out the policy recommended by the Committee of the House of Commons in 1884, for the purpose of enabling Railway Companies to borrow at a lower rate than they did at present. The Government would not give any guarantee, but would lend money to the Companies at a cheaper rate than they 1296 would be able to borrow it in the open market.

§ EARL BEAUCHAMP
asked whether Clause 4 related to now railways or only to those already in existence?

§ VISCOUNT CROSS
said, it related also to new railways, and was intended to enable the Government to raise money to lend to the Companies.

THE EARL OF KIMBERLEY
said, he wished to express his entire approval of the principle of the Bill. It would carry out a policy which had long been desired.