THE CHAIRMAN OF COMMITTEES (The Earl of ONSLOW)My Lords, I ask your Lordships to make an alteration in your Standing Orders to allow interest to be paid during construction of railways at the rate of 4 per cent. instead of 3 per cent. per annum. This alteration in the Standing Orders has already been made in another place. As your Lordships are probably aware, it is very difficult now to raise capital at 3 per cent., and a very strong representation has been made to the authorities in both Houses of Parliament to allow interest at 4 per cent. I beg to move that your Lordships agree to the proposed alteration in the Standing Orders.
§ Moved, That Standing Order No. 128 be amended as follows:—
§ [NOTE.—The word in small capitals is to be omitted, and the word printed in Italics is to be inserted.]
§ 128. A clause shall be inserted in every Railway Bill prohibiting the payment of any interest or dividend out of any capital which the company have been or may be authorised to raise, either by means of calls, or of any power of borrowing, to any shareholder on the amount of the calls made in respect of the shares held by him, except such interest on money advanced by any shareholder beyond the amount of the calls actually made as is in conformity with the Companies Clauses Consolidation Act, 1845, or the Companies Clauses Consolidation (Scotland) 731 Act, 1845, as the case may be; and except such interest (if any) as the Committee on the Bill may, according to the circumstances of the case, think fit to allow, subject always to the following conditions:—(1) That the rate of interest allowed by the Committee do not in any case exceed THREE four per centum per annum; (2) That interest be allowed to be paid in respect only of the time allowed by the Bill for the completion of the railway, or such less time as the Committee think fit; (3) That payment of interest be not allowed to begin until the Railway Company have deposited with the Board of Trade a statutory declaration by two of the directors and the secretary of the company to the effect that two-thirds at least of the share capital authorised by the Bill, in respect whereof interest may be paid, have been actually issued and accepted, and are held by shareholders, who, or whose executors, administrators, successors, or assigns, are legally liable for the same; (4) That interest do not accrue in favour of any shareholder for any time during which any call on any of his shares is in arrear; (5) That the aggregate amount to be so paid for interest be estimated and stated in the Bill, and be not deemed capital within Standing Order 112; (6) That notice of the company having power so to pay interest out of capital be given in every prospectus, advertisement, or other document of the company inviting subscriptions for shares, and in every certificate of shares; and (7) That the half-yearly accounts of the company do show the amount on which, and the rate at which, interest has been paid. And the company may be authorised by the Bill to pay interest accordingly, but not further or otherwise.—(The Earl of Onslow.)
§ On Question, Motion agreed to.