Colonel NEWMANasked the Minister of Transport whether he is aware of the hardship caused to railway shareholders by the fact that, while other businesses and trades have been allowed to increase 710W their charges to meet increased cost of production, railways alone were denied this right; and will he consider in any readjustment of freights and rates the claim of the shareholders to an increase of dividend to meet the increase in the cost of living?
§ Mr. NEALThe railway companies were guaranteed their 1913 net receipts under the agreement with the Government into which they entered voluntarily, and, at a time of great uncertainty, railway shareholders, including holders of ordinary stock, were guaranteed against any loss of their income on the basis of this favourable year. I am unable to admit that they have suffered any special hardship. In the revision of rates the object will be to place railway fares and rates upon an economic level.
Colonel NEWMANasked the Minister of Transport whether the statement in Command Paper 402 that the railway revenue earned from all sources exceeds the expenditure of the guarantee by about two to seven millions is based on an estimate of the value of the whole services rendered to the Government free of charge by the railways, whether on actual railway working or otherwise; and whether, in estimating these services, the amount credited to the railways for carrying troops is put in at the reduced rates under the Cheap Trains Act, 1883?
§ Mr. NEALThe figures given in paragraph 6 of Command Paper 402 apply to the period of control up to the 31st March, 1919, and include the estimated value of all services rendered to the Government whether on railway working or otherwise. The value of these services shown in respect of Railway Executive Committee, and is understood to make due allowance for the special rates provided for in the Cheap Trains Act, 1883.