§ Order of the Day for the Second Reading, read.
§ LORD MACNAGHTEN, in moving the Second Reading, said, the object of the Bill was to enable Trustees to invest trust moneys in their hands in Dock and Harbour Trusts. In principle it followed the legislation of recent years, allowing Trustees a much wider range of investment than formerly. It allowed them to invest trust moneys in railway and municipal securities, and, indeed, in almost every first-class security. The only question arising was whether the safeguards proposed in the Bill were sufficient; but that would be a question for Committee if their Lordships would read the Bill a second time.
§ Moved, "That the Bill be now read 2a." (The Lord Macnaghten.)
THE CHAIRMAN OF COMMITTEES (The Earl of MORLEY)asked the noble and learned Lord whether, assuming for the moment the investments were sufficiently secured, the 5th clause should not be altered so that a certificate should be given as to the conditions upon which the trust securities were to be based—whether something more than the signature of the Chairman or Secretary of the Trust should not be required? If these Trust investments were to be allowed some better security than that should be given.
§ LORD MACNAGHTENsaid, that was really more than the security now required in the case of railway investments, where no certificate of any kind was given.
§ THE LORD CHANCELLOR (Lord HERSCHELL)In the case of railway investments, the security is that the railway has paid on its Ordinary Stock for a certain number of years. Of course, with railway undertakings, where that is the case, there is that security. But Dock undertakings depend a great deal upon trade, and are, therefore, liable to fluctuations. One knows there are some ports which are not in a flourishing condition, and safeguards applicable to Dock undertakings that there should be a certain amount of shipping in the port would not, of course, apply to railway traffic. I think there is a great deal in the observation of the noble Lord that it is hardly right to depend entirely upon the certificate of the Chairman.
§ Motion agreed to; Bill read 2a accordingly, and committed to a Committee of the Whole House on Monday next.