SECOND READING (Hansard, 8 June 1894)

*THE UNDER SECRETARY OF STATE FOR INDIA (Lord REAY)

said, in moving the Second Reading of this Bill, that its object was to enable the Secretary of State to exercise the same powers as were exercised by Committees of their Lordships' House in allowing interest to be paid out of capital during the construction of railways. The principle was first adopted by the House of Commons in 1883, on the recommendation of a Select Committee in 1882. On the 27th of May, 1886, their Lordships decided that a similar alteration should be made in Standing Order No. 28, and on the lines of that Standing Order the Bill had been drawn. He would have to move in Committee the addition of two clauses, one dealing with the retrospective sanction of interest which Companies were allowed to pay out of their capital during construction, and another limiting the operation of this Bill to 10 years. He trusted their Lordships would give the Bill a Second Reading, on the ground that it was very desirable to remove any hindrance which might exist to the employment of capital for extension of railways in India; and as in England no inconvenience had arisen from the application of the Standing Order passed by both Houses, it was not expected that difficulties would arise from the operation of the Bill if it should please their Lordships to give it a Second Reading.