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India—Nizam State Railway—Loans To Indian Princes

Volume 229: debated on Monday 29 May 1876

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Question

asked the Under Secretary of State for India, Whether the shares of a Company formed by the Nizam for the construction of a Railway have been placed on the London market; whether such a proceeding is in contravention of the letter or spirit of the statute 37 Geo. 3, cap. 142, sec. 28, by which it is enacted that no British subject shall be concerned, either by himself or by any other person, in raising or procuring any money for such native prince; and, whether, in case the Act is not sufficient to meet the case, the Government will introduce a Bill to remedy the defect?

Sir, it is true that certain shares were issued last Summer by the promoters of the Nizam's State Railway Company, in pursuance of an agreement entered into between the Government of Lord Mayo and the Nizam. With regard to the second part of the right hon. Gentleman's Question, I must remind him that, according to 37 Geo. III. cap. 147, sec. 28, the consent or approbation of the Secretary of State in Council or of the Indian Government has in such cases to be obtained in writing.