8.—12

50

the Orders is demanded, while the suggested conditions would appear prima facie to be reasonable, and such as might probably be observed. I have, &c, The Eight Hon. Dr. Lyon Playfair, M.P., &c, Heney G. Calceaft. House of Commons.

No. 6.—Proposals for altering Standing Order 167, by the Chairman of Wats and Means. Standing Order 56, line 2, after " second class " insert " including therein all payments intended to be made to the shareholders as interest on calls made in respect of shares held by them." Eepeal Standing Order 167. New Standing Order to follow Standing Order 166: — A clause shall be inserted in every Bill authorizing the creation of share capital for railway purposes, providing that no interest shall be paid to any shareholder on money paid by him upon calls, except under the following conditions—viz. : (1.) That the rate of interest paid shall not exceed 5 per cent. (2.) That such payment of interest shall not begin until at least two-thirds of the share capital authorized by the Bill has been subscribed, and is bond fide held by the subscribers. (3.) That such payment of interest shall not be continued after the completion and opening for traffic of the railway to which the capital is directed to be applied, nor in any case for more than five years after the passing of the Act. (4.) That notice of the intention of the promoters to pay such interest be given, together with the notice of other particulars required by the Standing Orders, by advertisement in the Gazette.

No. 7.—Lord Eedesdale's peoposed Alteeations of Standing Oedee 167. In Standing Order No. 3, line 15, after "privileges," insert " or to empower a company to pay interest or dividend out of capital." In Standing Order No. 56, line 2, after "class," insert "including therein all payments, if any, to be made to shareholders by way of interest or dividend out of capital." In lieu of Standing Order No. 168 : A clause shall be inserted in every Eailway or Tramway Bill by which the creation of share or loan capital is authorized, to provide that no interest or dividend shall be paid out of such capital to any shareholder, on money paid by him upon calls, except upon the following conditions—viz. : (1.) That the rate of interest or dividend shall not exceed 4|- per cent, per annum. (2.) That such payment of interest or dividend shall not begin until the company have proved to a Justice (Sheriff) that two-thirds of the share capital, if any, has been bond fide issued and accepted, and is held by the persons and corporations to whom the same was issued, or their executors, administrators, successors, or assigns, and that such persons or corporations, their executors, administrators, successors, or assigns, are legally liable for the same ; and upon production to such Justice (Sheriff) of the books of the company, and of such other evidence as he shall think sufficient, he shall grant a certificate that the proof aforesaid has been given, which certificate shall be sufficient evidence thereof. (3.) That such payment of interest or dividend shall not be continued after the completion and opening for traffic of the railway or tramway, nor in any case for more than five years from the passing of the Act in the case of a Eailway Bill, or three years in the case of a Tramway Bill. New Order, 168 a.—In the case of all Bills other than Eailway and Tramway Bills, by which the creation of share or loan capital is authorized, and express provision is made that interest or dividend may be paid out of such capital to shareholders upon money paid by them upon calls, conditions similar to those set forth in the preceding Order shall be inserted, with such alterations as the circumstances of each case may, in the opinion of the Committee, require.

Appendix No. 2. Paper handed in by Mr. Bees, 28th April, 1882. Dieectoes named in Bills of the present Session by ■which it is proposed that Interest should be paid out of Capital during Construction. Central Northumberland Baihvay.—Sir Charles Edward Trevelyan, Sir John Swinburne, Ealph Carr Ellison, Hon. Frederick William Lambton, John Eobinson, William Forster the younger, Charles Macartney Swarbrick. East and West Yorkshire Union Hallways. —Joseph Charlesworth, Henry Bentley, Humphrey Brooke Firman, Edward Bower, Hon. Fitzroy Stewart. Bhondda and Swansea Bay Bailway. —The Eight Hon. Victor Albert George Child Villiers Earl of Jersey, Charles Bath, Thomas Cory, John Eichardson Francis, Thomas Joseph, Morgan Bransby Williams, John Jones Jenkins, John Crow Eichardson, William Williams. Begcnt's Canal, City, and Dock Bailway. —Sir George Henry Chambers, William Eushton Adamson, James Brand, James Staats Forbes, Albert George Sandeman, Charles Gassiot, William Hamilton Crake, Colonel Ben Hay Martindale, Alexander Lang Elder, Henry William Carter. Hull, Barnslcy, and West Biding Junction Bailway and Dock Company. —Lieut.-Colonel Gerard Smith (Chairman), John Fisher (Deputy Chairman), Henry Hodge, Esq., Henry Briggs, Esq., the Eight Hon. Lord Beaumont, William Day, Esq., Edward Leetharn, Esq., Francis Eeckitt, Esq., William Hamilton Crake, Esq., James Stuart, Esq., Watson Arton Massey, Esq., Lawrence Stephenson, Esq., John Leake, Esq., William Eayment, Esq.

Appendix No. 3. Memorandum by Sir F. S. Eeilly, Q.C. 1. If Standing Order 167 did not exist, the practice would, I think, be to take express power in Eailway and other Bills, where the promoters desired to pay interest before earning profit. They