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Commons Chamber

Volume 145: debated on Wednesday 27 July 1921

House of Commons

Wednesday, July 27, 1921

The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.

Private Business

Grimsby Corporation Bill [ Lords ],

To be read the Third time To-morrow.

Hastings Tramways (Extension) Bill [ Lords ],

As amended, considered; to be read the Third time.

Rhymney Valley Water Board Bill [ Lords ],

As amended, considered; Amendments made; Bill to be read the Third time.

South Essex Waterworks Bill [ Lords ],

As amended, to be considered upon Friday.

Pilotage Provisional Orders (No. 5) Bill,

As amended, considered; to be read the Third time To-morrow.

Oral Answers to Questions

Government Staffs and Offices

Foreign Office

asked the Under-Secretary of State for Foreign Affairs what is the bonus payable to the historical adviser to the Foreign Office, and what is the total amount received by this official?

The bonus, at the present moment, is at the rate of £750 per annum, and the total emoluments amount to £1,950 per annum.

Is this absolutely unnecessary office to be one of the economies to be reported to the Treasury by the hon. Gentleman's Department in a few days?

I cannot at all agree that it is an unnecessary office, but it has been stated that it is personal to the present incumbent.

How old is this official? We could then form some estimate as to the term of his tenure of the office.

If the hon. and gallant Gentleman will look at an ordinary book of reference he will discover the information.

Admiralty

asked the Parliamentary Secretary to the Admiralty what are the maximum annual holidays taken by the staff of the Small Works Department of the Admiralty?

I assume the hon. Member refers to the Department of the Civil Engineer-in-Chief, in which case the maximum annual leave of the staff varies from 12 to 48 days. With the hon. Member's permission I will circulate the detailed figures in the OFFICIAL REPORT.

Will the hon. and gallant Gentleman say how these figures compare with civil holidays—holidays granted to those engaged in the City in similar positions?

I cannot answer that question offhand, but I understand they are more or less the same for the different grades.

The following are the detailed figures: Headquarters.

Professional officers, 36 days during first 10 years and 48 thereafter.

Examiners (technical), assistant surveyors, chief examiners, 36 days.

Accountant clerks and engineering or architectural assistants, 18 to 36 days per annum, according to grade and service.

Hired writers, 18 days.

Temporary adult male clerks and female adult clerks and tracers, 18 days.

Junior temporary clerks, 12 days.

[Commander Eyres-Monsell.]

Outports.

Superintending civil engineers, 42 days.

Civil engineers, surveyors, assistant civil engineers, and assistant surveyors, 36 days.

Subordinate officers (draughtsmen, accountant clerks, and foremen of works), 28 days.

Ministry of Labour

asked the Minister of Labour how many members of the staff of his Department are in receipt of salary, including bonus, in excess of the salary of the Minister (£2,000).

The number of officers on the staff of the Ministry of Labour who will receive during the current financial year a salary, inclusive of bonus, in excess of £2,000, is two. There are, in addition, two officers who are in receipt of salaries, inclusive of bonus, of slightly over £2,000 a year, at the present time, but who, as a result of the reductions in the bonus announced by the Chancellor of the Exchequer yesterday, will receive not more than £2,000 during the financial year.

Royal Air Force

asked the Secretary of State for Air if he will give the name of the Air Vice-Marshal who presides over the Central Editing Section, what salary he receives per year for carrying out these onerous duties; the number of staff employed; and the cost of the section to the country per annum?

Air Vice-Marshal J. F. A. Higgins, C.B., D.S.O., A.F.C., is in charge of the Central Editing Section. His emoluments comprise the pay and allowances of an Air Vice-Marshal of the Royal Air Force, i.e., £2,268 per annum. No extra pay or allowances are received by him in respect of these duties. He is assisted by one clerk, who receives £220 per annum. The cost of the section is, therefore, £220 per annum, and to this may be added the pay of the officer in charge during the period that he is performing these duties

May I ask whether the clerk at his salary might not carry out the duties himself just as well?

No, Sir. As the hon. Member, with his knowledge of the service, will appreciate, there is an immense amount of necessary literature which has to be prepared in the case of the Royal Air Force, starting de novo.

asked the Secretary of State for Air the functions of the Directorate of Works and Buildings; the size of the staff and the number of highly-paid technical men in it; and the cost to the country per annum?

The function of the Directorate is to deal with the sitting, design and construction of, and the supply of stores and materials for works and buildings required by the Air Ministry and Royal Air Force at home and abroad; and electrical, water, gas and drainage services and property questions in connection with works and buildings. The cost and number of the headquarters staff of the Directorate of Works and Buildings is shown in Vote 5 of the Air Estimates for the current year 1921-22.

Expenditure (Reductions)

asked the Prime Minister how long it will be after the Departments have announced the reductions they can make in their expenditure before the Government can make a statement on the subject?

My right hon. Friend the Chancellor of the Exchequer proposes to make a statement on the financial position for the current year before the House rises. As already explained, it will not be practicable for the Government to complete their examination of the provisional Estimates for 1922–23 by that time.

Are these Departmental replies going to be treated as confidential, or will they, at some time or other, be published?

No, Sir; it would be quite outside the ordinary course for replies of that kind to be published.

asked the Lord Privy Seal whether an opportunity will be given to the House before its rising to discuss the answers to the Treasury circular of 13th May; and, if not, whether the provisional Estimates referred to on page 4 of the circular to be furnished by the Departments will be submitted to the Estimates Committee of the House?

As already explained, it will not be practicable to complete the examination of the Departmental replies to the circular before the House rises. It will be open to the Estimates Committee, if re-appointed next Session, to examine the Estimates for 1922–23 as presented to the House.

Oh yes, but is not the hon. Gentleman aware that the Estimates Committee has power to sit in the Recess, and is it not, therefore, possible to submit this to them, even if the House may know nothing of this proposed reduction?

The Estimates Committee has not power to sit during a Recess, but only during an Adjournment. Therefore that argument does not apply.

In that case, is it not the more necessary that the result of these proposed economies should be laid before the House before we part?

asked the Financial Secretary to the Treasury how many Departments have intimated the possibility of complying with the proposed reduction of 20 per cent. in their expenditure; and which these Departments are?

As stated by the Lord Privy Seal and the Chancellor of the Exchequer on the 21st instant, the publication of the Departmental Returns must await their examination by the Treasury and partial reports are not considered desirable. I may add that, if the hon. and gallant Member will refer to the Treasury Circular of the 13th May, he will see that the Government do not contemplate a uniform reduction of 20 per cent. for all Departments. The object is to effect that reduction upon the total ordinary expenditure on Supply Services, and the actual reduction which it may be decided to effect in the case of any particular Department may be more or less than 20 per cent. according to the nature of the expenditure.

Can the hon. Gentleman tell us plainly which Departments have proposed a reduction, in response to the invitation and which are those reductions?

It would be impossible to make any general pronouncement on that subject at present.

Then we may take it that no Departments have announced their intention of making any reductions in their expenditure?

Board of Agriculture

asked the Minister of Agriculture how many inspectors are employed, respectively, by the Board of Agriculture and by the county agricultural committees; and how many were employed in 1914?

The number of inspectors, including district land commissioners and sub-commissioners at present employed by the Ministry, is 306, as compared with 174 in 1914. Officers employed by County Agricultural Committees, excluding any wholly paid out of county funds, number 217, of whom 99 are cultivation officers, whose appointments, owing to the decision to decontrol agriculture, will be terminated at 1st October next or as soon after as is practicable. Seeing that these committees were only set up last year as a result of the Ministry of Agriculture and Fisheries Act, 1919, the last part of the question does not arise in their case. I would point out, however, that recent legislation, and particularly the Government Land Settlement Scheme, has imposed many fresh duties both on the Ministry and the County Agricultural Committees, which have necessitated considerable increases in the staff of inspectors.

Vacation of Buildings

asked the hon. Member for the Pollok Division of Glasgow, as representing the First Commissioner of Works, whether he will say, now that the coal and agricultural industries have been decontrolled and the Ministry of Transport is about to be absorbed, what buildings, such as the Windsor Hotel, can be expected in the near future to be given up or disposed of by the Government?

Until the Departments concerned are able to furnish estimates of the reductions of staff which will result from the changes mentioned, it will not be possible to determine how much accommodation can be surrendered or what buildings will be affected. I can, however, assure the hon. Member that there will be no delay in disposing of accommodation as soon as it is vacated by the staffs in occupation.

Civil Service (Examinations)

asked the Financial Secretary to the Treasury on what principle it is proposed to pay successful candidates in the recent examination; and whether they will be paid according to their efficiency, their past experience, or according to the nature of the work they shall perform?

I would refer the hon. Member to the answer which I gave on the 21st instant to the hon. Member for Harrow.

Ex-Service EmployéS

asked the Financial Secretary to the Treasury whether, seeing that temporary clerks receive a consolidated wage without bonus, ex-service candidates who have been successful in the recent examination will receive considerably less in September, when the bonus falls, than that which they would have received had they remained temporaries?

It is customary for un-established employés to suffer, on establishment, a reduction in pay to correspond with the value of the pension rights to which they become entitled. In the cases of ex-service candidates the difference between the initial permanent rate of pay (even allowing for the drop in bonus) and the existing temporary rates of remuneration will, for officers in receipt of salaries of under £300 per annum, generally not exceed the value of the pension rights, etc., to which such persons will become entitled.

Passpoets and Visas

asked the Under-Secretary of State for Foreign Affairs whether, following our acceptance of the offer of France in connection with the mutual abolition of the visa, His Majesty's Government are now prepared to follow up this excellent example and make an offer to the Government of Italy for the mutual abolition of the visa between her nationals and those of Great Britain?

As this question has been considered for two years, cannot the hon. Gentleman promise us something better? If the delay is not on the part of this country, will the hon. Gentleman consider the sending of a small delegation around the Continent of Europe to try to negotiate with the other Powers?

I should be very glad to see my hon. Friend on a delegation of that character. As has been said, the matter is under consideration.

If French subjects can come here without visas, why is a differentiation made against the Italians?

asked the Under-Secretary of State for Foreign Affairs the approximate number of officials in this country occupied in the issue of passports and visas; and what is the total annual cost to the country of the up-keep of these Regulations?

The information asked for will be found in the reply which I made to a similar question put by the hon. and gallant Member for Chelsea on the 14th June last.

Is it not a fact that one of the greatest difficulties in doing away with visas is the difficulty of displacing, not only in this country but in every country in Europe, the officials who are firmly entrenched in these offices?

55. The hon. Member further asked whether His Majesty's Government will instruct our representatives at the League of Nations to urge by every means in their power the carrying out, in the immediate future, of the recom- mendations made in October last with reference to the subject of the simplification of passports and visas?

The British representatives on the League of Nations are fully aware of the importance attached by His Majesty's Government to the carrying out of these recommendations.

How many of these recommendations have been made to the respective countries, and how many others have been acted upon during the last ten months?

That is not the question on the Paper. Perhaps my hon. Friend will give notice.

Royal Navy

Loss of H.M.S. "Hampshire."

asked the Parliamentary Secretary to the Admiralty whether he will lay upon the Table of the House the Report from the admiral in command at Scapa Flow to the Lords of the Admiralty on the loss of H.M.S. "Hampshire," in view of the long time that has now elapsed since the loss of that vessel?

I would refer the hon. and gallant Member to the reply given by the Prime Minister to a similar question by the hon. and gallant Member for Bradford, East, on 5th August, 1920, to which I have nothing to add.

Is the hon. Gentleman able to give an assurance that the decision of the Government in this matter is not withholding from the public any fact of importance connected with Lord Kitchener's death?

I can certainly give that assurance. As the Prime Minister has stated, all the facts are known to the public.

asked the Parliamentary Secretary to the Admiralty if he has any official information as to an alleged divulgence by an officer on Lord Kitchener's staff, who went down with the "Hampshire," of secret information respecting the journey of this vessel to Russia; and, if so, if he is prepared to make any statement on the subject?

Does the hon. Gentleman realise that this report refers to only one officer—that there was only one officer on the staff who went down to whom it could refer—and its casts a slur on the memory of an honourable and gallant man. In view of the unsatisfactory nature of the reply, I shall raise this question on the Adjournment on Friday.

New Battleships

asked the Parliamentary Secretary to the Admiralty whether tenders for the new battleships have been invited; how many shipbuilding firms have been invited to tender; whether any contracts have yet been placed; what time limit is being placed in the contracts; and whether work on the hulls, armour plate, or guns has yet commenced?

I would refer the hon. and gallant Member to the reply given to the question asked by the hon. and gallant Member for Rotherham on 11th July. The position has not changed since that date.

May I have an answer to the question whether work has been begun on the hulls, guns, or armour plates of these ships?

Admiralty Yacht "Enchantress."

asked the Parliamentary Secretary to the Admiralty what is the approximate number of weeks during which the Admiralty yacht "Enchantress" is used in each year; what it the annual cost of its upkeep; and whether the First Lord's inspections could be equally well carried out in one of the smaller warships already in commission?

Excluding the period of the War, when the "Enchantress" was laid up and her complement absorbed into the fighting fleet, the "Enchantress" has been employed cruising (namely, has been absent from her home port) for an average of about 90 days a year, from the years 1912–13 to 1920–21. For information as to the cost of the "Enchantress," I would refer my hon. Friend to the reply I gave to the hon. Member for Twicken-ham on the 25th instant. It is not considered that the inspections by the First Lord and the Board of Admiralty could be conveniently or economically carried out in one of the warships to which my hon. Friend refers.

Does the hon. Gentleman think that the very heavy expenditure mentioned in the answer is justified in these days, especially as the "Enchantress" is used for only three months of the year? Would it not be a very valuable experience for the First Lord to go to sea and see practical conditions in one of His Majesty's ships?

I have no doubt that my hon. Friend realises that the conditions on His Majesty's ships do not allow any spare accommodation, and that Members of the Board of Admiralty could not easily be accommodated. There is no spare room on His Majesty's ships. With regard to the "Enchantress," the Board certainly consider that as this ship is able to get into touch with the sea-going fleet it is well worth all the expenditure.

Not the comfort of the First Lord of the Admiralty or of the Board of Admiralty, but the position of the officers on His Majesty's ships.

Is the hon. Gentleman aware that the Commanders-in-Chief of two of the squadrons have yachts? Could not one of those yachts be used instead of the "Enchantress"?

Cordite Factory, Holton Heath

asked the Parliamentary Secretary to the Admiralty whether any analysis has been made of the water at Holton Heath, Dorset; whether it is as suitable for cotton bleaching as the water in Lancashire, and will it be possible to obtain as good a product from using Holton Heath water; whether there is any complaint of the quality of bleached cotton now being delivered from Lancashire mills to Holton Heath; and whether, in consequence of the serious financial condition of the country, the expenditure of £106,000 can be postponed?

The answers to the first three parts of the question are in the affirmative. As regards the fourth part of the question, no specific complaint has been made, because it has been considered that the cotton as despatched to the cordite factory is in the best condition that we can reasonably expect. But it has been established that a much higher degree of purity can be obtained if plant such as it is now proposed to erect is provided. Climatic tests of cordite disclose the presence of impurities which the processes adopted up to the present have failed to remove. The essential difference is that the final purification will take place immediately before nitration, and without the cotton being handled in transit subsequent to cleansing. Impurities are believed to be the root of all trouble in cordite, and therefore any step which will assist to remove them entirely directly affects the safety of His Majesty's ships. As regards the latter part of the question, I would refer the hon. and learned Member to the answer given on 20th July to the hon. Member for Rossendale.

Is the hon. Gentleman aware that there are many bleach works in Lancashire now available for doing precisely the same work with efficiency and economy without requiring any capital outlay on the part of the State?

Is it not quite possible that in a year or two cotton will be dispensed with in the manufacture of cordite, and will not the equipment of a manufactory for this process in Lancashire cost a considerable sum of money?

In answer to my Noble Friend, that is quite possible. In answer to the hon. and learned Member who put the first question, I am perfectly aware that there are factories in Lancashire which can carry on this work, but they cannot do so to our entire satisfaction and under our supervision. If we have to supervise it, another staff will be necessary, and it will also be necessary to take measures as to transit. This cotton can pick up dirt easily, and any impurity in the cotton may cause corrosion and eventually inflammation, leading to spontaneous combustion. It is really a question of providing against such dangers.

Peace Treaties

French Native Troops, Germany

asked the Under-Secretary of State for Foreign Affairs what numbers of French Native African and Asiatic troops are still maintained in the occupied territories of Germany; and if he has any information as to their withdrawal or otherwise?

I have been asked to reply. The total number of French Native African and Asiatic troops now employed by France in the Rhine-land is about 23,000; of these 18,500 are natives of North Africa, 2,500 are natives of Madagascar, and the remainder are Anamites employed with motor transport service and in hospitals. There are no negro troops. There are no coloured troops in other portions of occupied German territory. I have no information as to the withdrawal of the French native African and Asiatic troops now in the Rhineland.

Turkey

asked the Prime Minister if Great Britain, France, and Italy are faced with any impediment in concluding peace with Turkey on terms which they may approve, though Greece may not; and whether these Powers are compelled to wait till the conclusion of the Turco-Greek hostilities before an end can be reached in the peace negotiations which commenced over two years ago at Versailles?

The great Powers have all along been willing to seize the earliest moment for the final conclusion of peace in the East, and they made a united effort in this direction in the Conference held at London in the spring. They would gladly welcome any further opportunity; but while the two principal parties are actively engaged in fighting the moment does not appear to be favourable for the attempt.

asked the President of the Board of Trade if the Allies have returned the sum of £1,400,000 in gold to the Turkish Government; and whether this was a fund available out of which to meet advances on reparation claims by British subjects against the Turkish Government?

The answer to the first part of the question is in the negative. I do not know what sum of £1,400,000 gold my hon. Friend has in mind. But under the Treaty of Sevres, if and when ratified, certain sums in gold will be placed at the disposal of the International Financial Commission for Turkey to be applied in accordance with the provisions of the financial Clauses of- that Treaty which provide inter alia for certain classes of claims by British subjects against the Turkish Government.

Is this £1,400,000 the Turkish gold which was deposited in Vienna and sent to London quite recently?

German War Criminals (Trial)

51 and 52.

asked the Prime Minister (1) whether the British Government has yet received any communication from France relative to the action of her Government, in conjunction with Belgium, in definitely withdrawing from all further participation in the Leipzig trials; and whether His Majesty's Government proposes to adopt a similar course;

(2) whether the translations of the reports of the Leipzig trials are now complete; and, if so, when will they be circulated for the information of Members of this House?

I have been asked to reply. As to the first question, I have little to add to the answers already given to similar questions. The course to be adopted will be determined after consultation between the Allies, and I understand that an oral communication has already been made to this end by the French Chargé d'Affaires, both to our own Government and to the Government of Belgium. As to the second question, the judgments referred to have been translated, and I hope that in the course of two or three days the papers will be in the hands of hon. Members.

May the House take it that before we rise we shall have some statement from the Government as to what course they propose to adopt in regard to the trial of the remaining 90 of the alleged War criminals still on the British list, always assuming, of course, that they are still in Germany?

International Labour Conference

asked the Minister of Labour whether he will consider the advisability of appointing a woman as one of the Government delegates to the International Labour Conference at Geneva next October?

The personnel of the British Government Delegation has not yet been determined, but my hon. and gallant Friend's suggestion will be borne in mind. I think we can undertake to meet my hon. Friend's desires when appointing the Government technical advisers. I understand that one or more women will probably be included among the technical advisers to the workers' delegate.

Is the right hon. Gentleman aware that one of the delegates could give place to a woman?

Unemployment

Employment Exchanges (Domestic Servants)

asked the Minister of Labour whether Employment Exchanges have been authorised to issue a list of requirements with regard to hours of work, wages, etc., to persons desiring to obtain domestic servants; whether any system of inspection of domestic servants who obtained places through an Employment Exchange has been approved or contemplated; and whether, seeing that any such system of inspection is likely to undermine the existence of friendly relations in the household and is quite unnecessary for the protection of the servant, as the demand for servants is much greater than the supply, he will withdraw any regulations of the kind?

As has been explained in reply to several previous questions, the juvenile advisory committees or choice of employment committees have, in a number of cases, formulated standard terms and conditions for domestic service for boys and girls under 18. These terms and conditions have no compulsory force and deal exclusively with persons under 18. But in view of representations made to me I am looking into the whole matter, and hope to discuss it to-morrow with the London Juvenile Advisory Committee. I am not clear what my hon. Friend means by inspection of domestic servants. I may say, however, that no official of the Ministry of Labour is authorised to pay a visit of inspection to a private house. Indeed, I may call my hon. Friend's attention to Section 29 (1) ( a, ) of the Unemployment Insurance Act, 1920, the effect of which is that inspectors appointed under that Act have no power to enter any private dwelling-house which is not a workshop.

Is the right hon. Gentleman aware that these advisory committees to which he has referred, carry on their business from Employment Exchanges, and write on official Government paper, and therefore employers of servants assume that these questionnaires which they receive, do come from the Ministry of Labour.

The advisory committees are chosen in part by the Ministry of Labour and partly by the Board of Education, but they have not, as I have already said, any compulsory powers. The Ministry are considering the whole matter, but I have taken time by the forelock and I am asking the London Juvenile Advisory Committee to meet me to-morrow.

Is the right hon. Gentleman prepared to receive a deputation from the workers' organisation in connection with this matter?

; I am always ready to receive any representative bodies from any quarter.

Has the right hon. Gentleman already been approached to receive a deputation from the Workers' Union, who have members employed in domestic service, for the purpose of discussing the question now being raised?

I have not received any request. If I do so, I shall gladly see the representatives of that body.

Is the right hon. Gentleman aware there is now a strong feeling in the country that these employment exchanges are not at all necessary?

Jamage Colliery (Stoppage)

asked the Minister of Labour whether the 10-ft. and two-row seams at the Jamage Colliery (Bignall Hill Colliery Company) have not been reopened and are closed down, thus depriving 100 men of employment, which men have so far been unable to obtain unemployment pay; and will he have the matter put right at the earliest possible moment?

I am informed that the two-row seams at the colliery in question have been definitely closed down owing to the damage caused by the withdrawal of labour through the dispute. The 10-ft. seam has been temporarily closed owing to the same cause, but will, it is anticipated, be reopened in four or five weeks. Test claims made by the workpeople who are thus unemployed have been disallowed by the insurance officer and appeals to the Court of Referees have been lodged. Steps will be taken to expedite the hearing of these cases, but my hon. and gallant Friend will realise that the decision in these matters does not rest with me.

On what grounds were these people refused unemployment pay, since they are not thrown out of work by the stoppage, but by the decision to close down these seams?

This is the decision of the insurance officer. Thereafter, on behalf of the persons concerned, there is an appeal to the Board of Referees, and then to the Umpire. That process is now being followed, and I will give my hon. Friend the final decision directly I get it.

When is that likely to be? Is the Minister aware that at the present time there are one hundred families being starved?

I have told the hon. Member I am taking steps to expedite the appeal, and I can do no more.

Will it be next week? I give notice I shall repeat the question on this day week.

Benefit (Holidays)

asked the Minister of Labour whether he has decided that unemployment benefit shall not be payable during customary holiday periods unless the unemployed person has been unemployed for at least a fortnight before the holiday period; if so, will he state his authority for making this decision; and whether, in view of the fact that it will inflict hardship upon many who have been unemployed for only a week prior to the holiday period, he will reconsider the matter?

The Umpire, who is the statutory authority for the determination of claims to unemployment benefit, has decided that in general persons who are suspended or working short time are not entitled to benefit for recognised customary holidays. Where, however, a person is off work for a period comprising more than 12 consecutive working days, exclusive of holidays (whether the days occur before or after or partly before and partly after the holidays), benefit may be paid for the whole period, including the holidays, subject to the deduction of the waiting period, if necessary. I have no power to modify these decisions.

Ex-Service Men

Building Trade

asked the Minister of Labour what progress has now been made with the employment of ex-service men in the building trade; how many disabled ex-service men have been trained in the building trade; and how many have actually obtained employment?

I regret that progress in the building scheme for the employment of able-bodied ex-service men to be trained in the building industry continues to be very disappointing. This is attributed by the employers to the continued slackness of trade. The National Federation of Building Trades Employers is holding a general meeting this week at Sheffield, and I am counting on receiving from the federation some practical proposals which may ensure real progress. 2,523 disabled ex-service men have passed through a course of training in the building trades under the industrial training scheme, and 4,516 men are now receiving training. I have no reason to believe that these men when trained are not as fully employed as other building trade operatives.

When these disabled ex-service men have been trained, will it be possible for them to find employment?

Can my right hon. Friend say in what branches of the building trade ex-service men are now being trained?

Will the right hon. Gentleman ask the Minister of Health also to advise him on any measure which is likely to produce more houses?

Wages

asked the Minister of Labour whether he is aware that in certain trades for which provision has been made for training disabled sailors and soldiers the rates of pay to be paid during improvership in employers' workshops have been from time to time revised, and that such revised rates have in most cases provided for a considerable increase over wages rates previously fixed; whether he is also aware that where men have been previously placed out under the terms of the original schemes there is no obligation on the part of the employer to pay the revised rates which may be agreed upon by the National Trades Advisory Committees concerned; and whether he proposes to ask for powers to compel the due observance of any such increased rates as may have received his-sanction and approval?

I am aware of the circumstances to which my hon. Friend refers. Wherever the scale of payments-to be made to an improver by the employer is increased upon the advice of a National Trade Advisory Committee, endeavours are made to secure by consent acceptance of the increased scale of employers who have already engaged improvers upon the original scale. These endeavours, I may say, meet with substantial success.

Will the right hon. Gentleman take steps to see that these employers who are refusing to carry out the request of the Ministry of Labour are removed from the list of Government contractors?

I do not know. I do not want them to retaliate by not helping with the improvership problem.

Housing

Mancetter, Warwickshire

asked the Minister of Health whether his attention has been drawn to the housing conditions in the parish of Mancetter, Atherstone, Warwickshire, where, out of 86 houses, 36 have been declared by the sanitary inspector to be in a bad condition, and where 18 houses contain 36 families; and whether, in view of the fact that the Atherstone Rural District Council accepted a provisional tender as long ago as May, 1920, for the erection of 12 houses, he can see his way to permit the scheme in question to be put into execution forthwith?

My attention has been drawn to the report of the sanitary inspector referred to. The question whether any additional contracts can be entered into in this case will be considered in connection with other cases.

Does the right hon. Gentleman notice from my question that the council accepted a provisional tender in May, 1920, for the erection of 12 houses, and will he see that at least the houses under that provisional tender are completed?

I am including that matter in the consideration of' the whole question.

Clayton Scheme

asked the Minister of Health whether, in view of his implied undertaking to extend the housing contract at Clayton, Manchester, on guild lines, and of his admission that the work already done by the Building Guild at Clayton is satisfactory, as well as of the willingness of the Manchester Corporation to continue the scheme in association with the guild, he will give his approval to the completion of the Clayton housing scheme on guild terms?

A tender by the Building Guild for the erection of any additional houses to be built by the Manchester Corporation would be considered with other tenders. There has been no undertaking to extend the present guild contract.

Building Prices

asked the Minister of Health what was the lowest tender for house building sanctioned by the Ministry of Health immediately prior to his appointment as Minister; and how this compared with the highest price sanctioned in 1920 and the lowest price accepted by him since his appointment?

The lowest tenders approved at the time mentioned in the first part of the question were £599 10s. for a non-parlour house and £741 for a parlour house. In each case the price was not subject to adjustment to meet variations in the cost of labour and materials. The highest tenders approved in 1920 were £l,097 for a non-parlour house and £1,288 15s. for a parlour house. These prices are subject to adjustment in respect of variations in cost of labour and materials and are not comparable to the others as the sites presented special difficulties. The lowest tenders accepted since 1st April, 1921, were £592 for a non-parlour house and £640 for a parlour house. In the former case the tender is subject to adjustment to meet varia- tions in the cost of labour and materials and in the latter case in respect of labour only.

Is the right hon. Gentleman aware that the figures he has just quoted are entirely at variance with the statement communicated to the Press by his Department to the effect that the fall in building tenders coincided with the change in the office of the Minister of Health, and will he see that the same publicity is given to the figures he has just mentioned as was given to the erroneous statement issued by his Department?

The hon. Member for Silvertown (Mr. J. Jones) must not continue these offensive interruptions. I hope I shall not again have to call his attention to this matter. I have cautioned him several times before, and, if he persists, I shall have to take steps to have him removed from the House.

asked the Minister of Health whether his attention has been drawn to the statement made in a building trade paper that in the eastern counties house building operations began to slacken last autumn and that now very little work was on hand; that prices have fallen considerably from the maximum; and whether, under these circumstances, he will reconsider his decision not to allow any more contracts to be placed for houses under the Housing Act of 1919 in excess of the limit of 176,000?

I have seen a statement to the effect referred to. I am afraid, however, that it will not be possible to exceed the limitations as regards housing laid down in the statement which I made on the 14th July.

Is the right hon. Gentleman aware that we have just had a statement by the Minister of Labour that it is difficult to absorb the ex-service men in the building trade owing to the slackness of trade; how then can he say that we are full up with orders for the next two years?

House Deficiency, Consett

asked the Minister of Health whether his attention has been called to the very serious deficiency of houses in the Consett Division of Durham and the high death-rate resulting therefrom; how that deficiency will be affected by the recent changes in the Government's housing policy; and what steps he now proposes to take to ensure an adequate supply of houses in that division for ex-service men and others?

According to my information, contracts have already been entered into by the Consett Urban District Council for the building of 177 houses, of which only some 50 or 60 have been completed. I think that the obvious course for the district council is to concentrate on the completion of these houses. The question whether any additional contracts can be entered into will be considered in connection with other cases.

Is the right hon. Gentleman aware that my question covers a very much larger area than his answer, and that the number of houses he has mentioned is a mere fleabite compared with those that are needed?

Local Authorities (Debt)

asked the Minister of Health if he will state the amount paid upon interest charges upon the outstanding debt of the local authorities in England and Wales during the latest financial year for which the figures are available?

The latest complete total at present available is that given in reply to a question by the hon. Member on 17th March last, namely, £20,030,000.

Old Age Pensions

asked the Minister of Health if an old age pensioner making an appeal for an increase of pension is deprived of the whole of the pension till the appeal has been decided?

An old age pension is paid to an existing pensioner at the current rate pending the decision on his appeal for a higher sum, but a pension cannot be paid on a new claim until the right to a pension has been finally decided.

Ireland

Grocery Trade Boards

asked the Minister of Labour whether, in view of the fact that inquiries have long since been made, a definite date has been fixed for the establishment of a trade board in Ireland for the hairdressing trade and also a trade board for the grocery and provision trade in Ireland?

The position remains as stated in the answer given in reply to a similar question asked by my hon. Friend on the 30th May, and I am afraid I cannot usefully add to what was then said.

In view of the fact that this has been going on for eight months, cannot the right hon. Gentleman give us a decision in the matter?

As I told my hon. Friend, it is very desirable—and I am sure he will agree—that as far as possible we should start at least by agreement between employers and employed. If I can get that, subsequent proceedings are likely to be more helpful and harmonious.

Does not the Trade Boards Act provide that, in the event of an agreement not being arrived at, the Minister has the final decision?

Yes, but I am talking about establishing a board and the representation of either side covering the trade and the exact limits to be covered.

Truce

asked the Prime Minister Whether he is aware that when Mr. de Valera was captured in Dublin on 22nd June, a report of a train ambush of British soldiers, which took place at Drum-condra on 16th June, was found upon him, describing in detail the action of the Irish republican army bombers and Thompson machine-gunners; whether, in view of this discovery, which proves that the ambushers reported to Mr. de Valera, he can state whether any arrangement has been made in the truce terms, which provide for due notice being given of the termination of the truce, in the event of the negotiations breaking down, so that Crown forces may not be surprised whilst unarmed and massacred; and whether he is further aware that plans to carry out such a massacre by surprise are known to exist in a certain area?

The Government are fully aware of the nature of the documents seized at the house in which Mr. de Valera was arrested, but do not propose either to confirm or correct the result of the researches which my hon. and gallant Friend appears to have made into the matter. In regard to the remainder of the question, my hon. and gallant Friend can rest assured that the safety of His Majesty's troops is a consideration which stands in no danger of being overlooked by the Government or their responsible advisers.

Will the right hon. Gentleman answer the question on the Paper, which asks that due notice will be given in the truce terms in the event of the negotiations breaking down, in view of the fact that numerous attempted treacherous assassinations have taken place, will he endeavour to have some notice of the kind agreed to?

Co-Operative Creameries

asked the Prime Minister, seeing that a truce is now operating in Ireland, whether he can see his way clear to allow those co-operative creameries that are now closed by mili- tary order to re-open; whether he is aware that the continued closing of these creameries is inflicting serious losses on Irish farmers and also restricting food supplies to this country, which are badly needed here owing to the drought; and, seeing that other measures, such as the curfew, have been cancelled, he can see his way to advise the authorities to permit these creameries to re-open?

I am informed that all orders closing creameries have been rescinded.

Kenya Colony (Natives' Wages)

36.

asked the Secretary of State for the Colonies what wages are paid monthly to natives doing unskilled work on public works in Kenya; and how do these wages compare with the wages paid by planters to the same class of labour?

In putting this question, may I be permitted to say how glad we are to see the Colonial Secretary in his place to answer it?

In answering it, may I be permitted to say how glad I am to see that my hon. and gallant Friend is taking the trouble to attend to ask his own questions?

I have no information as to the prevailing rates of wages in Kenya at the present moment, but I will consult the Acting Governor on the subject.

Rhodesia (Native Reserves)

asked the Secretary of State for the Colonies whether natives of Rhodesia have recently been deprived of a reserve of 6,000,000 acres and given one elsewhere of 5,000,000 acres; whether, if so, any compensation has been given to the natives for cost of removal or loss of improvements; whether there is any risk of further curtailment of the reserves for railway lands or otherwise; and whether His Majesty's Government have now definitely resolved that in future native reserves shall remain undiminished and reserved for the exclusive use of natives?

The hon. Member no doubt refers to the action taken as a result of the recommendations of the Southern Rhodesia Native Reserves Commission, whose Report is published in Cd. 8,674, whereby the total area of the reserves in Southern Rhodesia has been reduced by about 1,000,000 acres. For the reasons given in the reply to a question asked by the hon. Member for Leigh (Mr. Raffan) on the 3rd November last, no special financial provision is considered to be necessary to assist natives in their removals, and there have been no complaints from the natives of pecuniary loss. The Administrator of Southern Rhodesia has promised, however, that if representations should be made by a native Commissioner showing that hardship would be suffered by any kraal or individual due to removal from a reverted area, the question of assistance would be sympathetically considered. As regards the last two parts of the question, I would refer the hon. Member to the terms of the Order in Council of the 9th November last, which is printed in Cmd. 1,042, and to Lord Milner's despatch to the High Commissioner for South Africa, also published in that Paper. It will be seen that the reserves have been formally vested in the High Commissioner for the use and occupation of the natives, and that, apart from from certain minor adjustments which may be necessary, the High Commissioner will have no power to alienate land comprised within the reserves except for very limited purposes, and then only in exchange for other land.

May we take it that there is no foundation for the allegation that the railways to be built through the reserve are to have grants of six miles of the natives' land on each side of the railway?

Can we be assured that that will not be done after this land has been settled on the natives?

I think my answer is complete on that point. If land be taken for certain limited purposes, other land must be provided.

asked the Secretary of State for the Colonies whether, under the scheme of responsible government proposed by the Buxton Committee for Southern Rhodesia, the Matabele native reserves will be administered on the same lines and with the same status as Basutoland, directly by the High Commissioner, or whether they will be administered by a Rhodesian Minister for Native Affairs responsible to the Southern Rhodesian legislature?

It seems quite clear that Lord Buxton's Committee in proposing to retain the High Commissioner's power of supervision and control had no idea of transferring to him administrative duties whch he does not at present exercise, and which have been, and should continue to be, performed by officials of the local government.

Airships

asked the Secretary of State for Air whether any change has taken place in the announced policy of closing down the lighter-than-air airship establishments on the 1st August next; whether the services of the personnel, and in particular the ground and office staffs, will be dispensed with or whether work will be found for them in other departments; and what annual saving will be effected by the closing down of the lighter-than-air airship establishments?

In reply to the first part of the question, there is no change, at present, in the Government's airship policy. 1st August remains the date. In reply to the second part, I would refer the hon. and gallant Member to the reply given by me to the question of the hon. Member for Twickenham (Sir W. Joynson-Hicks) on Monday last (No. 97). If the airship service is shut down as from the 1st August, the saving on this year's Estimates, under this head, should amount to some £150,000.

Arising out of the second part of the answer, may I ask whether the answer to that question did not apply to the regular officers? What will happen to the clerical staffs and civilian staffs em- ployed? Will they be absorbed, or will their services be dispensed with, in order to effect a saving?

Generally speaking, the civilian staff, who have already received notice of this date, will have to find other civil employment. As regards the military staff, they will, in almost all cases, be absorbed.

44.

asked the Secretary of State for Air if he can now make a statement as to the future position of airships?

This is a similar question to the last one. I do not know whether the right hon. Gentleman has anything to add in consequence of the recent Committee?

No, Sir. I have prepared an answer to the question. Until the Dominion Premiers have given their decision as to whether they will participate in either or any of the schemes outlined in the Report of my Committee, which was handed to my right hon. Friend the Colonial Secretary yesterday, it is not possible for the British Government to lay new proposals before Parliament.

Are we to understand that, in the event of the Dominion Premiers not agreeing, as we had reason to think they would, in some way to keep this vital service going, the whole thing will be scrapped on the 1st August, without this House having the opportunity to discuss it either on the right hon. Gentleman's salary or in any other way?

Yes, Sir; the suggestion which has been laid before the Premiers by the Committee over which I presided, includes, of course, the scrutiny of the private offer, all of which involves participation and contribution from the Dominions concerned.

I have sent a private notice to the Secretary of State for the Colonies, and, if convenient to the House, I will ask it now.

I may simply say that I have received the report of my right hon. Friend's Committee, and that a special meeting of the Committee of the Imperial Conference is summoned for to-morrow morning.

Will the right hon. Gentleman be able to make a statement here to-morrow afternoon?

No, Sir; because the decision of the Committee will have to be reported to the full Conference.

Mesopotamia

asked the Secretary of State for the Colonies when the plébiscite is to be taken in Mesopotamia, on the unanimous motion of the Council of Ministers at Bagdad, with regard to the election to the Amirate of Iraq of His Highness the Emil Feisal; and whether he can give the House any further information regarding the progress of his policy in Mesopotamia?

The High Commissioner and the Council of State are taking steps to ascertain the views of the population of Mesopotamia on the subject of the Amirate, but the date of the referendum has not yet been reported; and for the present there is no further information to give the House.

asked the Prime Minister whether he is aware that the country is being left in ignorance of the extent and natural resources of Mesopotamia and of the work of reorganisation and civilisation which has been effected by British rule since its capture from the Turks; and could he enlist the services of the historical adviser to the Foreign Office, in collaboration with British administrators and Arab notabilities, to correct the impression that the taxpayer has nothing to show for his money?

The White Paper dated 3rd December, 1920—" Review of the Civil Administration of Mesopotamia "—should serve to dispel any ignorance there may be regarding the period ending July, 1920, and from time to time similar reports will be published, to bring the information up to date.

Africa (Indian Subjects)

asked the Secretary of State for the Colonies whether, in view of the strength of feeling among the Europeans in Kenya at the suggestion that an Eastern theory of civilisation, instead of a Western, should be imposed both on them and on the natives, he will recommend a Royal Commission to investigate the whole question of the position of Indians in Africa, since the principle adopted in one part of the African Empire must affect all the others?

As I stated in Committee of Supply on the 14th July, I am reluctant, for the reasons I there gave, to have recourse to a Royal Commission to consider this question, unless other means fail.

Army Estimates

asked the Prime Minister if an opportunity will be given to discuss the Army Estimates; and, if so, when?

I would refer my hon. and gallant Friend to what the Prime Minister said on Monday last, in reply to a question by my hon. and learned Friend the Member for York (Sir J. Butcher).

War-Time Restrictions

asked the Prime Minister what other war-time restrictions, apart from those on the sale and consumption of liquor which are now being taken in hand, still remain to be placed on a permanent peace-time footing; and what action to that end the Government proposes to take in each case?

I will make inquiries with a view to collecting the information asked for by my hon. Friend.

Imperial Defence

asked the Prime Minister whether any steps have been taken at the meetings of the Dominion Prime Ministers and representative of India to come to any decision in regard to the future organisation and unification of a system for the defence of the British Empire; and whether there is to be any permanent Sub-committee of the Committee of Imperial Defence on which the Dominions and India will be represented?

The question of co-operation in the naval, military, and air defence of the Empire has been discussed with the Dominion Prime Ministers and representatives of India. Representatives of the Dominions while in this country are invariably invited to meetings of the Committee of Imperial Defence and its Sub-committees, when subjects likely to interest them are under consideration.

Does that mean that the recommendations of the last Imperial Conference have not been given effect to at this Imperial Conference?

That there should be some greater unity of command in regard to the whole defence of the Empire.

It is too early for me to say what will be the outcome of the discussions of the present Conference. It will be for the Conference itself to decide what announcements shall be made, and those will be communicated to the House as soon as we are in a position to do so.

Aviation (Cross-Channel Services)

asked the Secretary of State for Air whether the terms of guarantee offered to the British aviation companies, as contained in Communiqué 679, were framed upon an estimate based upon the fares for cross-Channel services prevailing at the time the Committee on Civil Aviation sat in April, 1920, and the then French terms of subsidy to the French aviation cross-Channel companies; and whether, having regard to the great reduction in fares and the increases in the French Government's subsidies since then, he has satisfied himself that upon these terms British cross-Channel services can be commercially maintained?

The terms of assistance to "approved" firms in connection with the cross-Channel aeroplane services, as contained in Air Ministry Communiqué No. 679, were based on the fares charged at the time of the issue of the Communiqué—15th June, 1921—and with the knowledge of the terms of the French subsidy. It was in consideration of the commercial and other problems not yet solved that the scheme of assistance explained in the Communiqué was framed.

British Army

Shooting Ranges (Civilian Practice)

asked the Secretary of State for War if facilities will be offered to civilians to use the shooting ranges in various parts of the country for purposes of private practice in marksmanship if they form proper and responsible associations for such purpose?

There is no objection to civilian rifle clubs using military ranges, provided the training of troops is not interfered with, and that no expense is thrown on public funds. The necessary arrangements should be made by the clubs with the local military commands and areas concerned.

Home War Service (Decorations)

asked the Secretary of State for War whether he has yet come to a decision on the question of the issue of some medal to those who, owing to inability to serve overseas owing to age or physical disability, were retained at home and gave long and good service from 1914 onwards in the Great War?

After the fullest consideration it has been decided that a War Medal should not be granted for home service, with the exception that the British War Medal should be awarded to the personnel of coast defence batteries actually engaged with hostile vessels during the War.

Is the hon. and gallant Gentleman aware that in the Royal Navy the personnel that served at home exactly in similar circumstances defending our coasts have been given the medal?

Conditions in the Army and Navy are clearly not quite the same. Of course, I cannot answer for the Navy. My reply only applies to the Army.

Discharge Purchase (T. E. Carr)

asked the Financial Secretary to the War Office whether he will recommend the repayment to Mrs. Mary Ann Carr, 75, Elm Street, South Moor, County Durham, of £20, which she was required to pay for the release of her son, Thomas Edward Carr, from the Army; whether he is aware that this lad enlisted when he was 17 years of age; that he is the only support of Mrs. Carr, except her husband, who is 68 years of age and hardly strong enough to walk to his work; that another son was killed in the War; and that she had to borrow the £20 in question and is without property or means?

I regret that it is not possible, after discharge by purchase has been carried out, to authorise a refund of the amount paid.

Why was this charge imposed? Is the hon. and gallant Gentleman aware that this woman is plunged into debt from which she has no possible way of escape owing to the action of the War Office?

Payment is always required before a man can be discharged, and the amount is fixed.

Is that necessarily so in the case of a lad of 17 who is the sole support of his mother?

Imperial War Graves

ask the Secretary of State for War how many cemeteries have now been dealt with by the Graves Commission in France and Belgium; and can he state approximately the number of British graves which have had stones erected on them in both these countries?

About 300 cemeteries are at present under construction in France and Belgium. Of these, seven are practically complete with their headstones; and as regards the remainder, it is expected that, in the great majority of cases, the Cross of Sacrifice and the other constructional work will be finished by the end of the year.

Some 16,000 headstones have been erected on the graves or are in the cemeteries awaiting erection. Consignments of completed and engraved headstones are forwarded weekly to France, last week's shipment including 1,000 stones.

Mussel Industry (Lympstone)

asked the Minister of Agriculture if any progress, as was promised some considerable time ago, has been made at Lympstone with the installing of the filtering tanks for the mussel industry on which a large proportion of the fishermen there depend for their livelihood?

I regret that, owing to technical difficultise arising in connection with the plans, constructional work has not yet been started on this installation, but every effort is being made to commence work at the earliest possible date.

How long is it likely to be before there is a start, seeing that the work has been promised for a good many months?

I cannot give an absolute date, but I am personally taking care that the matter shall be attended to as quickly as possible.

Muzzling Order, Portsmouth

asked the Minister of Agriculture if he can now give a date on which the Dog Muzzling Regulation in Portsmouth will come to an end; and if he is aware that these Regulations are causing a great deal of unnecessary trouble?

A case of rabies occurred as recently as the 5th June last within the neighbouring city of Southampton, but it is hoped that it will be possible to withdraw the Muzzling Order, go so tar as Portsmouth is concerned, about the end of August, should no further outbreak of rabies occur in the meantime within the scheduled area. I am aware of the inconvenience which these restrictions cause, but I would point out that they are necessary if this dangerous disease is to be finally stamped out.

Guardianship of Infants Bill

asked the Lord Privy Seal whether, in view of the general support in the House of the Guardianship of Infants Bill, he can give the necessary Government time for its further stages in the House this Session?

I would refer the hon. and gallant Member to the statement I made yesterday in the course of the discussion on the Business of the House.

Has not the right hon. Gentleman received a numerously signed memorial from members of the House asking that time might be found for this Measure?

I do not think I have received such a memorandum from Members of the House. Having regard to the number of Government Bills which are in the same category, the most I could do would be to try and take this Bill if there was general consent.

Is the right hon. Gentleman aware that the only really relentless opposition to this Bill comes from the right hon. Baronet the Member for the City of London (Sir F. Banbury) and the hon. Gentleman the Member for East Edinburgh (Mr. Hogge).

May I—[HON. MEMBERS: "Order, order!"]—on a point of Order. The hon. and gallant Gentleman has made a personal allegation against me which is totally false.

National War Exhibition

asked the hon. Member for the Pollok Division of Glasgow, as representing the First Commissioner of Works, what payment has been made to the Crystal Palace trustees for the housing of the National War Exhibition; for how long the payment is for; and if any additional sum was paid for alterations or improvements before the exhibition was opened?

The accommodation at the Crystal Palace occupied by the Imperial War Museum is held under an agreement for 4 years from 1st April, 1920, at a rent of £25,000 per annum, inclusive of rates, lighting, heating, cleaning, and structural repairs. The cost of the necessary alterations amounted to £5,800.

Has the hon. and gallant Gentleman considered the advisability of opening this institution to the public on Sunday, which is the best day for them to see it?

Post Office

Newspapers, Burton Overy

asked the Postmaster-General if he is aware that the postman at Burton Overy, Leicestershire, is not permitted to deliver newspapers sent through the post; if this order is in force in all country districts; and will he take steps to rectify this wherever this order is in force?

Neither the postman mentioned nor any other postman is forbidden to deliver newspapers which have been posted and addressed in the ordinary way.

Libellous Postcards

asked the Postmaster-General whether, in view of the large number of scurrilous and libellous postcards, mostly anonymous, which are addressed to "public men, he will instruct the scrutineers at present employed on checking the correct stamping of such cards also to direct the attention of the postal authorities to those bearing matter of a libellous and offensive character, in order that the Regulation relating to such matters may be carried out?

Postcards bearing matter of an indecent, obscene, or grossly offensive character are withheld from delivery if observed in the ordinary course of post. But to make a special examination of the writing on all postcards with this object in view would involve a large addition to the postal staff, and I do not think the additional expenditure which would be incurred would be justified by the results.

County of London Electric Supply Company

asked the President of the Board of Trade whether his attention has been called to the County of London Electric Supply Company, Limited, enforcing the statutory minimum charge for a larger consumption of electricity than has actually occurred owing to users having followed the Board of Trade Regulations during the recent coal strike; and whether his Department can take any action in the matter?

I have been asked to reply to this question. My right hon. Friend the Minister of Transport has not had his attention particularly directed to the charges made by the County of London Electric Supply Company, Limited, during the recent stoppage in the coal industry. My hon. Friend has been misinformed as to the Board of Trade having issued any Regulations dealing with the consumption of electricity. The charges, moreover, appear to have been within the statutory rights of the company, and the Minister is not in a position to take any action in the matter.

Business of the House

May I ask the Leader of the House three questions 2 First of all, what business does he propose to take to-day after the Time Table is concluded; secondly, what business does he propose to take to-morrow and after eleven o'clock to-night; and, thirdly, will he inform the House whether, on the occasion when the Chancellor of the Exchequer makes his promised statement, he will put down the Treasury Vote again, so that the House may have an opportunity of discussing it in Committee?

To-night we propose to take the Admiralty Pensions Bill. I understand it is the general desire that this Bill should be passed and that very little time will be occupied with it.

To-morrow we shall take the War Pensions Bill, as amended in the Standing Committee.

As regards the statement to be made by the Chancellor of the Exchequer, it would be impossible to put down the Treasury Vote again, because Supply will have been concluded before my right hon. Friend can make his statement. If the right hon. Gentleman wishes to know on what occasion the statement will be made, I should be obliged if he would ask the question again later.

In deciding when the statement is to be made, will the right hon. Gentleman bear in mind the desirability of giving an opportunity for debating it?

What I conceive to be probable is that the statement will be made on the Second Beading or the Third Reading of the Consolidated Fund Bill, when, of course, a discussion could take place.

Can the right hon. Gentleman say when Vote 8 of the Navy Estimates will be taken?

Can the right hon. Gentleman say how many subjects he has allocated for discussion to the Consolidated Fund Bill?

All those subjects which hon. Members desire to discuss for which opportunities have not already arisen.

Bills Presented

Exchequer and Audit Departments Bill,

"to amend the Exchequer and Audit Departments Acts, 1866 and 1889," presented by Mr. Hilton Young; supported by the Chancellor of the Exchequer; to be read a Second time To-morrow, and to be printed. [Bill 189.]

Zion Congregational Chapel (Frampton Cotterell) Charity Bill,

"to confirm a scheme of the Charity Commissioners for the application or management of the charity consisting of the Congregational chapel, Sunday school, burial ground, and trust property of the parish of Frampton Cotterell, in the county of Gloucester," presented by Mr. Lane-Fox; to be read a Second time upon Wednesday next, and to be printed. [Bill 194.]

MANCHESTER COBPOBATION (GENEBAL POWERS) BILL [Lords]

Reported, with Amendments, from the Local Legislation Committee; Report to lie upon the Table, and to be printed.

Territorial Army and Militia Bill

Reported, with Amendments, from Standing Committee

Report to lie upon the Table, and to be printed.

Minutes of the Proceedings of the Standing Committee to be printed.

Bill, as amended ( in the Standing Committee ), to be taken into consideration upon Monday next, and to be printed. [Bill 191.]

Ministry of Health Provisional Order (Cardiff Extension) Bill

Reported, with Amendments [Provisional Order confirmed]; Report to lie upon the Table.

Bill, as amended, to be considered To-morrow.

Message from the Lords

That they have agreed to,—

Merchant Shipping Bill.

Paisley Gas Order Confirmation Bill, without Amendment.

Ministry of Health Provisional Orders (No. 7) Bill, with an Amendment.

St. Helens Corporation Bill, with Amendments.

That they have passed a Bill intituled, "An Act to dissolve the marriage of Mary Isabella Hamilton, of 112, Biddulph Mansions, Mai da Vale, Paddington, in the County of London, with Arthur Cunningham Hamilton, and to enable her to marry again; and for other purposes." [Hamilton's Divorce Bill [ Lords ].

Ministry of Health Provisional Orders (No. 7) Bill,

Lords Amendment to be considered To-morrow.

Hamilton's Divorce Bill [ Lords ],

Read the First time; to be read a Second time.

Telephone Service

Report from the Select Committee, with Minutes of Evidence and Appendices, brought up, and read [Inquiry not completed];

Report to lie upon the Table, and to be printed. [No. 191.]

JURIES (EMERGENCY PROVISIONS) (RENEWAL) BILL [Lords]

Read the First time; to be read a Second time To-morrow, and to be printed. [Bill 190.]

TRUSTS (SCOTLAND) BILL [Lords]

Read the First time; to be read a Second time To-morrow, and to be printed. [Bill 192.]

CRIMINAL PROCEDURE (SCOTLAND) BILL [Lords]

Read the First time; to be read a Second time To-morrow, and to be printed. [Bill 193.]

Corn Sales Bill

Lords Amendments to be considered upon Friday, and to be printed. [Bill 195.]

Orders of the Day

Railways Bill

[1st Allotted Day.]

As amended ( in Standing Committee A and in Standing Committee B ), considered.

On a point of Order. I wish to ask whether the fifth new Clause on the Amendment Paper ( Road Vehicles ) is in order? I suggest that it is not in order, on the ground that it is outside the scope of the Bill. The Clause says:

On the Second Beading of the Bill it was impossible for all those who would be affected by this particular new Clause—and they number many thousands in all parts of the country—to have realised what it meant, and to have expressed their opinion in regard to this particular Section before the voting on the Second Reading. There have been many decisions in respect to this question, but I will refer to only one. In the year 1916, in Volume 78 of the OFFICIAL REPORT, hon. Members will find it laid down by the then Chairman of Committees how the words, "scope of the Bill" are to be interpreted. It was on the Military Service Bill. I do not think I need trouble hon. Members with details of the Amendment, because the decision covered all similar Amendments. The then Chairman of Committees said:

Is the hon. Baronet raising a point of Order, or is he making a speech?

With very great deference, I suggest that I am trying to put my point of Order as shortly as possible. I ask you, Sir, to rule that this Clause, inflicting as it would financial results upon hundreds of thousands of people—who could not have known what was contemplated when the Second Reading was before the House—to rule that it is out of order, and outside the scope of the Bill.

May I point out that for years past railway companies have carried on certain businesses ancillary to their railway work, and that this Bill covers all those ancillary businesses, as well as the main railway work? I refer to docks, hotels and steamships, all of which are covered by this Bill In particular, I would like to point out that a great many railways now do run, under powers conferred by Acts of Parliament, a large amount of road transport, and I most respectfully submit that you cannot confine even a Railways Bill to the mere construction of railways and to rolling stock. Under the term "railways" in the Preamble and title of this Bill are included all those ancillary services, powers for which for years past this House has conferred upon railway companies.

May I add to what my hon. and gallant Friend (Major Hills) has said by pointing out that the title of the Bill is to amend the law relating to railways. That surely covers this which is a most important Amendment of the law relating to railways.

I think the ruling given by the Chairman of Committees in 1916 was a very sound one, and I think that the hon. Member for Twickenham (Sir W. Joynson-Hicks) is therefore right. This Bill is not a Bill to confer new powers on railways. The words from the Title quoted by the hon. Member for Altrincham (Major Hamilton), "to amend the law relating to railways," do not give an opening for proposals conferring great new powers on railways. Therefore, I am of opinion that the proposals in the Clause referred to must be a matter of separate legislation.

May I put this further point, that several railway companies—in fact, four—already have this power which we would like to give to all railway companies? These four railway companies are grouped under this Bill into two groups—the Northern and the Eastern, while the Southern and the Western groups include no railway company possessing these powers. This appears to us entirely to alter the situation under the existing law, and we desire to amend the law to make it more fair to the groups formed under this Bill. To do this we have put down this new Clause, which I submit is essential to make the Bill which we are asking to be carried into law fair all round.

May I very respectfully point out that this Bill gives largely increased powers to railways, and is not a Bill merely for regulating the powers? It gives powers to make increased charges, and many other powers as well, and it would be just as reasonable to regulate the road transport powers as to do what was done in Committee when they specially inserted a proviso to Clause 57 regulating the powers of the companies to charge for the ancillary services which are now part of the railways, and must be dealt with as such.

As I happened to be Chairman of the Committee which, about 20 years ago, first gave power to the North Eastern Railway Company to run motor omnibuses, I would like to point out that the point then to be considered was that the running of these omnibuses was confined to specific areas, whereas this Clause which you, Sir, have ruled out of order would make it general. The powers we gave were given by a Private Bill Committee, and were confined to special areas.

The further points raised by hon. Members are points I had already taken into careful consideration. It is true that in certain limited cases powers have been given by Private Bill Committees upstairs, and on those occasions the parties had an opportunity of appearing and being heard; but I cannot gather from that anything which affects my present ruling. With regard to the point raised by the hon. and gallant Member for Durham (Major Hills)—that the Bill confers powers on the companies to charge higher rates—I do not see how that can be urged in support of this proposal that they should have entirely new powers to run something other than railways, in competition with a great number of other parties who have no opportunity of being heard.

NEW CLAUSE.—(Power of trustees to invest in securities of amalgamated companies.)

For the purposes of the provisions of the Trustee Act, 1893, and the Trusts (Scotland) Acts, 1861 to 1910, relating to the securities in which trustees are authorised to invest trust funds, an amalgamated company shall be treated as it were a railway company in Great Britain incorporated by special Act of Parliament and had in each of the ten years immediately before the date of amalgamation paid a dividend at the rate of not less than three per centum per annum on its ordinary stock.—[ Mr. Neal. ]

Brought up, and read the First time.

I beg to move, "That the Clause be read a Second time."

4.0 P.M.

Under the existing law both in England and Scotland trustees are enabled to invest their trust funds in railway securities of a certain character, in cases where the railway companies concerned have during the preceding ten years paid a dividend on not less than 3 per cent. per annum on their ordinary stock. The new amalgamated companies which are set up under Part I of the Bill cannot possibly comply with that requirement inasmuch as they will be new companies, and it is in order to make the securities of the amalgamated companies conform to the existing law of the constituent companies of which they will be controlled that we move this new Clause.

I am not quite sure how this will affect Scottish stocks. Perhaps the Lord Advocate will explain? Will these stocks become subject to the English law?

The effect of this Clause is exactly the same in Scotland as its operation would be in England. The reason why Scotland is specially mentioned is because we have a special group of trust laws in Scotland and accordingly the Trusts (Scotland) Acts, 1861 to 1910, will apply to the stocks of the amalgamated companies. The effect of the Clause will be to raise these stocks to exactly the same position as railway stocks to-day are in.

My right hon. Friend no doubt knows perfectly well there are certain English stocks in which Scottish trustees can invest and English trustees cannot invest. I presume they are protected?

They are.

Question put, and agreed to.

Clause read a Second time, and added to the Bill.

NEW CLAUSE (Superannuation and Benefits Funds.)

"All superannuation, pension, provident, widows and orphans, and other benefit funds and schemes established for the benefit of the officers and servants of any constituent or subsidiary company, shall continue to be administered and carried on as heretofore, save that from the date of amalgamation or absorption all payments hitherto made to or by the constituent or subsidiary companies in connection therewith shall be made to or by the amalgamated company with or in which such constituent or subsidiary company is amalgamated or absorbed, and all acts hitherto performed by the constituent or subsidiary companies in connection therewith shall, with such modifications as are rendered necessary by amalgamation or absorption be performed by such amalgamated company."—[ Mr. William Graham. ]

Brought up, and read the First time.

I beg to move, "That the Clause be read a Second time."

This Clause is one which provides for continuing in exactly the present form the superannuation, provident, and other funds of the railway companies. This matter was discussed at considerable length in Committee upstairs, and the view which the Government takes is that the Clause which we propose to insert is unnecessary, because, in the first place, the amalgamated companies will take over the liabilities of the constituent companies, and because, in the second place, these superannuation and provident funds were set up under separate Acts of Parliament, and cannot be in any way interfered with as the result of the operation of this Bill. I regret very much that up to the present time, although substantial agreement has been reached between representatives of the railway companies and representatives of the staffs interested in the superannuation funds, the Government have not seen their way to agree to the insertion of a Clause of the kind in the Bill.

I want to put the case very briefly indeed, and to try to indicate to the House exactly what will happen, in our view, if a Clause of this kind is not inserted. These superannuation, provident, and other funds involve about £21,000,000. They are naturally of the very greatest importance to the staffs of the railway companies because they contain a considerable element of deferred pay and provision for age and other times of need. They are, for these reasons, funds to which railway employés of the various grades attach the very greatest importance. It will be argued by the Minister of Transport that, inasmuch as he has provided that the amalgamated companies will take over the liabilities and inasmuch as these funds are set up under separate Acts of Parliament, this Clause is unnecessary. But I want to ask the Minister to look at what is going to happen under the amalgamation schemes. It is quite true that these funds are established by separate Acts of Parliament, but they relate to individual railway companies in this country, and when the amalgamation scheme comes into force these individual railway companies disappear, and with the disappearance of the individual railway companies goes the contribution to the system or structure of management which these companies make at the present time. The funds, of course, vary as regards management, but I am informed it is a common principle in the management of these funds that you have representation of the companies on the one side and of the staffs on the other, and it is mainly to this question of management of the funds that the employés attach importance at the present time.

There cannot be any doubt that unless we put a Clause of this kind in the Bill there is a very great danger indeed of serious legal difficulty arising when the amalgamation takes place and the constituent and subsidiary companies disappear. We are by no means alone in this belief. The railway companies them selves, quite apart from any action which was taken by the staff at all, had Clauses on the Order Paper on the Committee stage of this Bill, in particular, a Clause relating to the Great Northern Railway scheme, and another Clause relating to the Clearing House superannuation scheme as well, and I take it that those Clauses would not have been put on the Order Paper by representatives of the railway companies if they had been quite clear of doubt as to whether difficulty will arise in this connection. I very much regret that in all the replies which we received in the Committee stage the Parliamentary Secretary devoted what seemed to many of us far too much attention to the danger of stereotyping these funds, or, as he put it on one occasion, of attempting under this Clause to standardise or unify the funds in one way or another. That is no part of our intention. As a matter of fact we could not possibly propose anything of the kind at the present time, because these funds are not only under separate Acts of Parliament, but the whole question of railway superannuation must be very carefully considered in the near future, and there must be a very careful actuarial investigation of the funds, and all the rest of it, before any unification or standardisation can be effected All we are asking in this Clause, and in this matter we have the support, I think, of representatives of many of the railway companies, is that provision should be inserted which makes it perfectly certain that whatever happens these funds, and above all, the system of management of these funds, will be continued unimpaired until the question can be treated as a whole or until some Other situation arises in which we shall be able to deal adequately with railway superannuation. If we have met the difficulty in regard to the possible stereotyping of the funds, if we have made it perfectly clear that we are not attempting any reform of the funds or anything like that, surely the Government will be prepared to meet us in the insertion of a Clause which can do nobody any harm, and which merely provides against the possibility of real legal difficulty unless some words of the kind suggested are inserted in the Bill.

I beg to second the Motion, but I do so on the understanding that the Mover will be willing to accept the Clause in the form in which it appears later on the Order Paper, or, if Amendments are moved to bring the Clause into that new form, that the Mover will accept those Amendments. Perhaps I may tell the House that the superannuation funds of the railway companies are autonomous bodies that are ruled by elected representatives. Take the case of the Midland Railway Fund. There the company contributes 4½ per cent. on all the salaries and the men 2½ per cent. This is paid into the fund, which is managed and distributed by elected representatives, of whom a certain number are chosen by the board and a certain number are elected by contributors. This Clause does two things. It affects the rights of contributors after the amalgamation of the companies into the larger groups, and though they may be safe without this Clause, I do submit that when you have these enormous funds on which the pensions of the men who have contributed all their lives depend, there is no harm in being doubly sure.

The second reason why the Clause is wanted is this. The management of the fund is very much in the hands of the men themselves. It is a democratic management, where representatives are freely elected and the superannuation committees are entirely independent bodies. The whole management and payment out is done by these superannuation committees. I hope the Government will accept this Clause. It has been very carefully considered, and the drafting has been most meticulously inspected. I cannot see any danger in it. All we want is to make it absolutely certain that every man after amalgamation has got the same right as he has now, and secondly, that the management of the funds will not be altered.

May I ask whether it would be in order for me, in order to save time, to move the Clause in the amended form, or must I adhere to the admittedly imperfect form which is now on the Order Paper?

I am afraid I could not accept the amended form out of its turn. Having regard to the conditions under which we are working to-day, I thought that the hon. Member would wish to keep his place in the programme. If the Clause be read a Second time, an Amendment can be moved to bring it into conformity with the later form.

I can only express my regret that, although this matter was fully threshed out in Committee, my hon. Friends have raised it again. I am sure that they are anxious that the question of the superannuation of railway servants shall be fully safeguarded in this Bill, and that that is the motive which has induced them to bring forward this Clause. The effect of the Clause is to impose upon the amalgamated companies the obligations under which constituent and subsidiary companies at present lie with respect to superannuation or other schemes of the kind. That is a result which must be achieved in the present Bill. It is quite certain that these obligations must be maintained, and therefore the real question is how that result, under a Bill such as this, can be best achieved. The matter has been fully considered from the legal point of view, and we believe that the best way in which to effect that object is to incorporate in this Bill the provisions in Part V. of the Railways Clauses Act, 1863, and my hon. Friends will remember that Part V. of that Act has been incorporated in Clause 3 of the Bill. Subsection (1, c ) of Clause 3 provides that an amalgamation scheme under this Bill:

"shall incorporate Part V of the Railways Clauses Act, 1863, subject to the provisions of this Act; and may incorporate with or without modification any of the provisions of the Companies Clauses Consolidation Act, 1845, and the Acts amending that Act."

I may explain that Part V of the Railways Clauses Act, 1863, deals with all cases in which such questions as superannuation raise difficulties upon amalgamation, and it contains a Clause which regulates those matters. I venture to suggest that that is a method of dealing with the matter much preferable to the Clause which has been moved by my hon. Friend. I think that the concluding words of his Clause would give rise to serious trouble. All the superannuation schemes are statutory, and the rights to benefits and so on are regulated by Statute. My hon. Friend's Clause, in its concluding words, proposes that,

"all acts hitherto performed by the constituent or subsidiary companies in connection therewith shall, with such modifications as are rendered necessary, by amalgamation or absorption be performed by such amalgamated company."

I would ask my hon. Friend what is the meaning of

"such modifications as are rendered necessary by amalgamation?"

It seems to me that that would throw the whole scheme loose, and might result in difficulties and create injustice on the one side or the other, according to the way in which these rather vague words are construed. On the other hand, I think my hon. Friend will agree that in adopting the existing provision with regard to amalgamation in the Railways Clauses Act we are on pretty sure ground—ground which is, I think, familiar to most of the companies. They know its effect, and I do not think the railway servants will really lost anything by the adoption of Part V of that Statute. On the other hand, if they are left to the interpretation of a Clause such as that which is proposed, I suggest that injustice may follow. We do know the effect of Part V. of the Railways Clauses Act, and I venture to think that that is much the best way in which to deal with the matter. Accordingly, I would suggest to my hon. Friend that he should not press this Amendment, but should rather let the matter rest upon the provision in the Statute to which I have referred.

I appreciate entirely what the right hon. Gentleman has said about the Railway Clauses Act, 1863; but would that provide for the maintenance of the structure and management of the funds, as distinguished from the liabilities?

I think it would. The result would be that the management of those funds would be continued, subject to the provisions of Part V. of the Rail- way Clauses Act, exactly as they were, so far as management goes, but if the question be whether the management is better under the present Clause or under the Clause now proposed, I venture to suggest that it is much better arranged under the provisions of the present Clause.

The difficulty in which we find ourselves is this. The Lord Advocate says to those of us—both railway companies and men—who are affected by this Clause, "I am a better judge of your requirements than you are yourselves." Boiled down, that is exactly what it means. I want to put this to him. If his object is to secure what we desire—and I gather that that is the only object of the intervention—then we say to him, "We are better judges than you," and we say it for this reason. You admit right away that, so far as the Government are concerned, they have no liability in this matter. Therefore the Government cannot possibly intervene on the ground of public interest or anything of that kind. This is, and must remain, purely a matter for the railway companies and their servants. That is admitted. Both bodies have met, and their legal advisers on both sides say exactly the reverse of what is said by the Lord Advocate. We laymen merely had to put the case to them. We said, "This is what we want. We are agreed absolutely between ourselves as to what we require; all that we want you, as legal people, to do, is to put it into Parliamentary language." Those were the representatives of the men and of the companies. They say that the Government opinion is wrong in this matter, and the Government turn round to us and say that our opinion is wrong. That is the difficulty in which we are. But if we are agreed, and if the Government are not interested, as they are not, surely, in a matter of that kind, they can leave it to those who are affected and who have taken legal advice. This is not a matter in which the Government ought to have any influence. If the railway companies and their servants say that they are anxious to preserve a certain thing which is affected by this Bill, and if they set their legal advisers to find the remedy, what earthly reason is there for the Government coming down and saying that they know better than we do? I say that they do not, and in any case, even if they did, we are prepared to take the risk. If you say to us that there is a risk, I say that we are prepared to take it, and I suggest, having regard to the importance of other matters in this Bill, that, on a matter on which we are agreed, the Government ought at least to allow us to be the best judges of our own business and ought not to interfere.

May I just try in a few words to convince my right hon. Friend that this is not wholly a legal question? So far as it is a legal question, we have taken the highest opinion that was open to us, and we are acting under advice which I think my right hon. Friend would not challenge. May I put to him, as a practical man, the real position? There are at present, in connection with the larger railway companies, individual superannuation funds. There is, in addition, a Clearing House fund, which includes in its membership many of the railway men employed upon the smaller lines. What is the process of management in the case of those funds? If you look through all the Acts you find that this runs practically through each, that they are statutory friendly societies to be administered by committees appointed partly by the companies and partly by the men. In two or three years the individual companies will cease to exist. To take one case, the Midland Railway Company will become an absorbed company—it will become part of a group, and I want my right hon. Friend to visualise what will happen when the Midland Railway Company ceases to exist. Under the rules as they stand at present, men working for the Midland Railway Company have a right to elect their share of the committee of management. Who will elect their share of the committee of management when the Midland Railway Company ceases to exist? That is the first practical difficulty. The amalgamated company would not be an appropriate company to deal with that matter.

Because I am dealing with the fund of the Midland Railway Company. Secondly, there are trustees of all these funds. They are trustees of the individual funds, and they are appointed by the beneficiaries in the individual funds. Although it is quite clear that you might for some temporary purpose have some such Clause as this, is it not equally clear that you will have to look at superannuation from a much broader point of view in the future than you have in the past? There will be four great companies. It is inconceivable that those great companies can be left without superannuation funds of their own. There may be a national fund including the whole of them, or there may be four funds, one for each of the groups, but whatever that fund may be, it must be the subject of special consideration and careful negotiation. The question must be considered whether men are to be transferred from the old fund into the new, or whether the old funds are to be kept intact for some period under some special Clause; and it is impossible, as we see it, quite apart from legal technicalities, to look at this question of superannuation in the light of a single Clause like this. It must be looked at nationally and broadly in the future. That is the view that we take. In the meantime—and I submit this on the authority of the legal advice of the Lord Advocate and others— we do absolutely protect those funds.

If this is a layman's question, the railway companies and ourselves are the laymen, and we repeat that we are better judges than you, because of our practical knowledge and experience; while, if it is a legal question, our lawyers differ from yours. Why not leave it to us?

I was trying to follow a considered line of argument to show that these funds must be dealt with on a particular basis in the future. To put in a Clause like this would lead to some confusion. You say the scheme must be modified. Modified by whom? The Clause says

"shall with such modifications as are rendered necessary by amalgamation or absorption."

Who is to settle the modification?

They are statutory bodies. They cannot alter the Statute without coming to Parliament. That is the view we take. It is a matter very largely for those concerned. We are not less anxious than the hon. Member to see what can be be done, and I make the suggestion that if this Clause, which we are advised—and we value the advice we get—would lead to confusion and trouble in connection with the funds, is not persisted in to-day we shall be glad to confer with all parties concerned and see whether something can be arranged. I make the suggestion, and there I leave it.

When the Lord Advocate was speaking I was not seriously alarmed, but now, having heard the Parliamentary Secretary, I am somewhat alarmed, because he raises quite a new aspect of this Debate. The Lord Advocate took the point, "I as a lawyer tell you that you are safeguarded in the Bill as it stands, and that in Paragraph ( c ) of Clause 3 you have all you are asking for in this Clause." The Parliamentary Secretary's argument against the Clause is not a legal argument at all, but an argument of important substance. It is, roughly speaking, that there will have to be amalgamation of the superannuation funds. I think there should not be amalgamation of the superannuation funds. You have to keep the funds absolutely separate.

I certainly did not intend to convey that there must be amalgamation of existing funds, but the creation of a fund for the amalgamated companies. The old funds must be kept alive.

That really is the point. If there are to be superannuation funds they must be new funds and the old superannuation funds ought to carry on as autonomous bodies to safeguard existing rights. When amalgamation takes place you have to start with a clean sheet and an entirely new fund. That is what I understand is wanted by the railwaymen concerned, and it is agreed to by the railway companies. If that is so, it is a most important point of substance.

What is the other point the Parliamentary Secretary takes against the proposal of the Clause? It is the phraseology— "with such modifications as are rendered necessary by amalgamation or absorption." The answer is that these are autonomous bodies and they are always-making modifications. I believe the hon. Gentleman is quite wrong in saying they will have to come to Parliament. That is merely a provision in this new Clause to enable the autonomous administrators of these funds to make any modifications which they in their wisdom consider necessary, inside their provision. Once the railway company has paid over to these funds the amount it agreed to pay it ceases to have any responsibility as such. The money is paid over and the funds are entirely separate from the railway company. The legal point of the Lord Advocate is that, by putting in the reference to Part V of the Railway Clauses Act, 1863, you are really safeguarding these funds. That is one legal opinion. That does not bind the Law Courts. The railway companies and the National Union of Railwaymen are advised by their legal representatives that that Part of the Act of 1863 is not sufficient, and I can quite understand why, although I am not a lawyer. I understand that Part V is merely the maintenance, on amalgamation between two or more railway companies, of contract rights for or against a railway company. It is merely novation of contract, and these funds are not exactly a contract between the railway company and anyone else. It is much more a contract between individual members of the fund and the trustees of the fund, and I doubt very much whether the novation of contract to which the railway company is a party covers these funds. Above all, if we can possibly avoid it, in a case like this, where we are dealing with members of superannuation funds, very often humble men, do not let us have legislation by reference. Let us have a thing in black and white in this new Act of Parliament. I urge the Government, if they do not feel strongly upon this point, if they can produce no better reasons against the Clause, where it is in fact an agreed Clause between the railway companies and the men, to waive their legal technicalities on the one hand and not introduce, to my mind, a very important point of substance such as is introduced by the Parliamentary Secretary, and allow the Clause to have a Second Reading so that it can be amended as desired by both parties.

The right hon. Gentleman the Member for Derby (Mr. Thomas) and others have said it is a pity the Government should intervene between two parties who are agreed. The only reason we have intervened is that the responsibility rests on the Government to try to produce a Bill which will not cause confusion, and we are doing our best not to make the confusion worse. We are told this is unnecessary and will cause a great deal of confusion. Those who put it down, in consultation with the railway companies, desired to have it put into the Bill. There are two ways of dealing with it. We can either put in this Clause, which the Government advisers, who have considered it carefully, say is both unnecessary and unsuitable, subject to Amendment in another place, or the House may possibly accept an undertaking, which I will give, that before the Bill reaches another place we will consult with both parties, the railway companies and those who speak for the members of the superannuation funds, and see whether we can agree on a Clause. I suggest that the better way is for me to give an undertaking that between now and the time the Bill reaches another place we shall consult. We have consulted very freely right through. There is no difference of opinion at all as to what we want to do. It is merely a matter of whether it is desirable to do this, and if this is the best way to do it, and on both points we have not had an opportunity of consulting.

The position is this. Proposals exactly on the lines of this Clause were submitted to the Ministry of Transport in May last, and we have been quite, unable to get any agreement, or indeed any attention to the matter.

I am very sorry to hear that because I do not think any Minister has taken more trouble than I have. I must leave it there. At this stage in a long Bill it is a pity to put in something which the Government draftsmen and the Law Officers of the Crown say is not desirable, and is unnecessary even in a desirable form. I think both sides in the controversy will be prepared to say I have always kept these bargains. I am quite prepared to discuss it and the Government will put down an Amendment in another place to make it perfectly sure that these rights are protected.

If my hon. Friends opposite agree, I am prepared, on that undertaking, to withdraw the Clause.

Motion and Clause, by leave, withdrawn.

NEW CLAUSE.—(Railway-owned canals.)

In the case of any Bill promoted in Parliament after the passing of this Act and containing provisions for the transfer of any canal owned or controlled by a railway company to a body of trustees or commissioners acting on behalf of a waterway or group of waterways the railway company shall not be entitled to be heard in opposition to such provisions except upon terms.—[ Mr. N. Chamberlain. ]

Brought up, and read the First time.

I beg to move, "That the Clause be read a Second time."

I was not a member of either of the Committees dealing with this Bill, and my hon. Friend the Member for Cam-lachie (Sir H. Mackinder), whose name is also attached to it, was himself presiding over one of the Committees, so it was out of our power to put it down on the Committee stage. It may appear to some hon. Members to be dealing with a somewhat hypothetical and remote contingency, but if it be examined it will be seen that it raises a question which is exciting widespread interest and anxiety among traders and the community generally. The question is whether these new powerful groups of railways are to have a practical monopoly of all forms of transit, or whether any alternative form, such as has found considerable favour on the Continent, and even in this country has made a considerable contribution to the transport problem, is in the future to be given a fair chance. I am not asking hon. Members to commit themselves to any expression of opinion as to the future of waterways. I am not asking them to say that the days of water-borne traffic have gone by, or whether there is still a future for it. All I am asking is that the door shall not be shut upon the possibility of developing the waterway traffic of the country by means of some new policy if such ever commends itself to Parliament. The effect of the Clause will be that if it were desired in the future to set up some public body in the form of a trust to administer groups of waterways the railway companies would not be entitled to oppose the transfer to such trustees or commissioners of any canal—

May I ask your opinion, Sir, on a point of Order. This Clause is to enact that at some future time, if canals are desired to be taken possession of by a body of trustees or commissioners, certain things shall ensue. Is not that somewhat in the same position as a Clause which I understand you, Sir, have ruled out of order, namely, that if certain people desire to use the roads for traffic, that is outside the scope of the Bill? It seems to me, speaking on the spur of the moment, that if the one is outside the scope of the Bill, so is the other, and that any question which may arise in future as to the use of canals is in the same position as any question which may arise in future as to the use of the roads.

Is it not also the case that a Clause such as this should be incorporated in the Bill to be brought forward hereafter, and that it is not in order to incorporate it in this Bill?

A good many canals have been taken into groups of railway companies under this Bill.

May I draw attention to the Manchester Ship Canal Act, of 1885, in which there occurs a Clause with respect to giving transfer to a trust to be set up—

"With respect to the transfer of the undertaking to a body of trustees or commissioners … to be constituted by Parliament, the following provisions shall have effect: If in any session of Parliament application be made to Parliament for an Act to constitute such trustees and effect a transfer to them of the undertaking of the company upon such terms and conditions as shall be agreed on between the company and the said trustees or as failing agreement may be prescribed by Parliament or settled by arbitration, the company shall not, except as hereinafter provided, oppose such Bill, but shall support the application for the same."

It was a Clause of that kind which I had in mind when I called upon the hon. Member for Ladywood (Mr. N. Chamberlain). That was in a private Bill. That form of Clause is rather frequently put in as a settlement of opposition, and provides that parties shall not oppose except on Clauses. The right hon. Baronet (Sir F. Banbury) has raised a new point, as to whether this Clause is not taking away a power or a right from the railway companies, and, therefore, it is parallel with my decision on the other new Clause dealing with road traffic, but in a contrary direction. I think the right hon. Baronet has raised a sound point, and following my ruling on the other new Clause, this also must be dealt with in separate legislation.

NEW CLAUSE.—(Saving rights of railway companies excluded from amalgamation)

Nothing in this Act contained or in any Order to be made under this Act shall diminish or prejudice the right of any existing railway company not mentioned in the First Schedule to this Act to construct, maintain, work and use the railways authorised by the Acts of Parliament relating to their respective undertakings.—[ Mr. G. Roberts. ]

Brought up, and read the First time.

I beg to move, "That the Clause be read a Second time."

This Clause is designed to preserve the rights of certain railway companies which have been excluded from amalgamation, and without it it is feared that the rights of certain companies may be prejudiced. It appears to me—I may be wrong, and if so it is very largely attributable to the fact that I was not a Member of either of the Standing Committees—that the original policy of the Bill has been departed from. As I understood it, we were aiming at the unification of the existing railways and the development of railways in backward areas in order to ensure that that development should not be arrested or destroyed it is necessary that we should have regard to the legitimate interests of those who have been engaged in the promotion and development of railways. It is common knowledge, and generally accepted, that the existing railway system has been built up as a result of the amalgamation of a number of small companies and that, in fact, railway enterprise has very largely been stimulated bp local necessity. Therefore it appears to me, and to those with whom I am acting, very desirable that nothing should be done to prejudice the rights of those who have embarked upon railway enterprise or to destroy the possibility of future development in this direction. All the cases that have been brought to my attention were originally scheduled in the Bill and have been moved out in Committee, the reasons for which do not appear to be very convincing. Having regard to the fact that a large number of these companies have been excluded from the Schedule it makes it all the more desirable that something in the nature of this Clause should be accepted in order to make it perfectly clear that legitimate interests are properly safeguarded. The White Paper somewhat misled us, and certainly it cannot now be claimed that the Bill as it now stands conforms to the White Paper. As the Bill has emerged from the Committee the policy of the White Paper has been departed from. What has caused apprehension in the minds of some of those with whom I am acting is the statement made by my right hon. Friend the Minister of Transport in Committee on the 30th June that:

I am much obliged to my right hon. Friend for the speech in which he has moved his Amendment. It is only proper that the House should con- sider the rights of railway companies which are excluded from amalgamation. No legislation which the House can pass amalgamating railway companies should prejudice the rights of railway companies which are excluded from amalgamation. I can assure my right hon. Friend that the Government have no intention whatever of prejudicing in any way the rights or the responsibilities of the excluded companies, or in any way affecting the interests of such companies. This Amendment is unnecessary. In result it merely states that the railway companies not affected by this Bill shall not be deemed to be affected by it. When it is put in that way, I think it is sufficient to show the House that an Amendment of this character is really unnecessary. I suggest to my right hon. Friend that he has achieved his purpose when he has expressed his view with respect to the companies excluded from amalgamation, and has obtained an assurance from the Government that their rights are in no way prejudiced.

Having regard to the assurance given by my right hon. and learned Friend, I beg leave to withdraw my Amendment. This is a case, however, in which the members of his own profession are in disagreement. I have been advised that the Clause was necessary, but I am now assured by my right hon. and learned Friend that the Clause is not necessary. I accept that assurance.

Motion and Clause, by leave, withdrawn.

NEW CLAUSE.—(Preservation of existing traffic regulations of companies not grouped in the Act)

Where at the time of the passing of this Act any railway is jointly owned by two or more companies (which are not grouped together in the first column of the First Schedule to this Act), whether such joint railway be vested in or worked by an incorporated committee or not, each of the owning companies shall in every year either carry over the joint railway at least as much traffic as such company carried over the said railway in the year nineteen hundred and thirteen, or pay to the other owning company or companies an amount equal to the loss which they shall sustain by reason of the deficiency in such traffic. For the purpose of ascertaining any such deficiency, the charges for the time being in force shall be applied to the traffic over the joint railway of each of the owning companies in the year nineteen hundred and thirteen.—[ Sir F. Banbury. ]

Brought up, and read the First time.

I beg to move, "That the Clause be read a Second time."

This Clause relates to the, Cheshire Lines Committee which is owned by three different companies. These companies will go into different groups. The Cheshire Lines Committee is not included in the Bill. The object of the Clause is to ensure that the companies owning the Cheshire lines, which will be rivals in future, will send over the Cheshire lines as much traffic as they did in the past, or in the event of their not doing so that they should pay certain contributions in money to make up any deficiency.

I hope the Government will not accept this Clause. It was moved in very simple and moderate words, but the Clause itself is of a most far-reaching character. Certain railways are links between two groups, but are not included in either group. The Forth Bridge is one, the Cheshire Lines Committee is another, the Somerset and Dorset Railway is another. The companies who own the Forth Bridge, whatever happens, every year must send the same traffic over that bridge as they did in 1913. The thing is not possible. You cannot bind the future in that way. There may be a slump in trade, and there may be 101 things operating: but whatever happens you must send the same traffic as you did in 1913 or pay the difference. I do not think my right hon. Friend really means that. I suggest to him that all that he wants, that is, facilities for traffic passing from the Cheshire Lines to the Great Northern Railway, the Midland Railway, or the Great Central Railway he will get under Clause 15. There I am entirely with him, but when he says that these interlinking lines, whatever they do, whatever their deficiency or however bad their management and although they may hold up your traffic for a month, are to have the same traffic as in 1913, he is making a suggestion that the Government cannot possibly accept.

I think that I can satisfy my right hon. Friend that the Clause which he is now moving is not one which he would desire to have passed into law. It would be impossible to work. Take his own illustration of the Cheshire lines. The Cheshire lines, he told us, are worked by a Statutory Committee which represents three railway companies who own the capital of the undertaking. All those companies are not grouped together. My right hon. Friend says that from the time the grouping becomes operative there is to be passed over the Cheshire lines the same volume of traffic as in 1913. The first objection is that the same volume of traffic may not offer as offered in 1913. Next, my right hon. Friend says that if any of the owning companies fail to send a proper amount of traffic over these lines they shall pay compensation. The three owning companies, the Great Northern, the Midland, and the Great Central, will ex hypothesi cease to exist because they have become merged in the amalgamated companies, so that there will be nobody to pay and nobody to receive. The Clause is not one which would achieve the purpose which my right hon. Friend has in mind. So far as facilities are concerned, the hon. and gallant Member for Durham (Major Hills) has pointed out that the Government have endeavoured to preserve in the fullest manner all existing facilities for the passage of traffic along the routes over which it previously passed.

I agree with the hon. Gentleman in thinking that the probable effect of this Bill will be to reduce traffic, and that the same traffic therefore will not be sent over these particular lines, but I cannot admit his further argument. The point is, taking the Cheshire lines as an illustration, they are owned by the Midland, the Great Northern, and the Great Central. The Great Northern and the Great Central will be in the Eastern and the Midland in the Western Group. What we are afraid of is that the Midland may make some arrangement to divert traffic which in the ordinary course of events would have gone over the Cheshire line and send it on to some other lines. That is the whole point. If they do not do it, no harm is done. If they do, then they ought to pay something for the diversion of that traffic. The hon. Gentleman says, "How can you tell that there will be any traffic?" I do not know, but we will presume that there will still be a certain amount of traffic sent over these particular lines, and all we desire to guard against is the wilful diversion of traffic which in the ordinary course would have gone over those lines. The idea that all competition is going to be stopped is illusory. There is going to be a great deal of competition between the great groups, and the object of this Clause is to prevent a very powerful group using their power, I will not say in an unjust way, but in a way which would injure others.

It may be that the phraseology of the Clause is not correct, and that the words "amalgamated companies" should be used. Tht is what was intended. The point that the companies will not exist is a small one, because if it is correct from the companies point of view it could easily be settled by putting in the words "the amalgamated companies." I admit that I do not care very much whether this Clause is or is not passed, because I am so certain that the whole Bill will be unworkable that it does not matter very much what is left in and what is not. My hon. and gallant Friend (Major Hills) is part owner of the Forth Bridge. He says that all sorts of conditions will arise by which traffic will be delayed on the Forth Bridge. If that is so, I am not afraid of the chairman or officials of the North British and other railways which are part owners, and there is no argument to be adduced from that at all that the joint undertakings are going to be conducted badly. It is rather a technical question, which relates to railways only. The question which is exercising my mind is whether I shall go to a division, but on the whole I am content to let this Clause be negatived.

Question, "That the Clause be read a Second time," put, and negatived.

The new Clause which stands in the name of the hon. Member for the Western Isles (Dr. Murray)— (" Vessels for coastwise traffic ")—is, following the ruling which I have already given, beyond the scope of the Bill.

CLAUSE 1.—(Grouping of railways.)

(1) With a view to the reorganisation and more efficient and economical working of the railway system of Great Britain railways shall be formed into groups in accordance with the provisions of this Act, and the principal railway companies in each group shall he amalgamated, and other companies absorbed in manner provided by this Act.

(2) The groups to be formed shall be those specified in the first column of the First Schedule to this Act, and as respects the several groups the railway companies to be amalgamated (in this Act referred to as "constituent companies") shall be those set out in relation to each group in the second column of that schedule, and the companies to be absorbed (in this Act referred to as "subsidiary companies") shall be those set out in relation to each group in the third column of that Schedule, and the companies constituted by such amalgamation are in this Act referred to as amalgamated companies:

Provided that the constitution of any group, and the constituent companies to be amalgamated in, or the subsidiary companies to be absorbed by, any amalgamated company may be varied in such manner as may, on or before the thirtieth day of June, nineteen hundred and twenty-two, have been propounded by any constituent company and approved by the Minister of Transport (hereinafter referred to as "the Minister"), and such variation shall be so approved unless in the opinion of the Minister, after taking into account all interests affected, and any representations made by a representative body of traders or by a body of persons representing trade or any locality, it is incompatible with such efficient and economical working of the railway system of Great Britain, or would prejudicially affect the interests of any other company or companies, but the Minister before approving any such variation shall give public notice thereof and no such variation shall have effect unless approved by a resolution passed by both Houses of Parliament.

(3) On any such variation being approved by such a resolution, the First Schedule to this Act shall have effect subject to such variation.

Are you, Sir, proposing to pass ray Amendment—in Subsection (1), to leave out the word "shall" and insert the word "may"?

Yes; I have passed over that Amendment in exercise of the powers vested in me.

I beg to move, in Sub-section (2), to leave out the words

"provided that the constitution of any group, and the constituent companies to be amalgamated in, or the subsidiary companies to be absorbed by, any amalgamated company may be varied in such manner as may, on or before the thirtieth day of June, nineteen hundred and twenty-two, have been propounded by any constituent company and approved by the Minister of Transport (hereinafter referred to as "the Minister"), and such variation shall be so approved unless in the opinion of the Minister, after taking into account all interests affected, and any representations made by a representative body of traders or by a body of persons representing trade or any locality, it is incompatible with such efficient and economical working of the railway system of Great Britain, or would prejudicially affect the interests of any other company or companies, but the Minister before approving any such variation shall give public notice thereof and no such variation shall have effect unless approved by a resolution passed by both Houses of Parliament.

(3) On any such variation being approved by such a resolution, the First Schedule to this Act shall have effect subject to such variation."

This proviso was inserted in the original Bill as a result of conference with the various parties concerned. It provides that within a limited time the grouping, as laid down in Sub-section (1) of the Clause, may be varied in certain conditions. The railway companies, through those who expressed their views in Committee, urged the Committee to give a longer time, an extra year, to enable them to bring the amalgamation to fruition. Since the Bill left Committee, the railway companies, and I believe representative traders, have come to the conclusion that this power to vary is of very little, if of any, value to them, and they are content to accept the grouping as set out in the First Schedule of the Bill. It was in consequence of a wish expressed from those quarters that I put down this Amendment. The position will, therefore, be, that those of us, and it is the vast majority of the House, I believe, and certainly of the Committee upstairs, who believe that economies will result from the group system, will be able to see the attainment of those economies one year earlier, because there are Amendments consequential to this, which bring the whole question of reorganisation of railways one year nearer.

Yes, consequential on this. We can deal with that afterwards. The House will pass the Schedule, after consideration, laying down the routes of the railway. Power to vary is no longer there, and the time will consequently be shortened by subsequent Amendments by one year.

The right hon. Gentleman is right in suggesting that some of us have no concern in the omission of this particular Sub-section as to the time given within which variations of the amalgamation may take place, but I am surprised to hear him say that the time extended in Committee, during which period companies have the power to amalgamate, hung upon this thing. That is not so. The Debate which was taken in Committee was to this effect. There were powers of variation—

I am grateful to my right hon. Friend. Now I understand that if the House accepts this Amendment it in no way interferes with any decision that the House may take as to further Amendments moved by the right hon. Gentleman.

The deletion of these words is the epitaph of voluntarism. I hoped myself that we might have a voluntary scheme of grouping. Many of us in the Committee have fought for an alternative scheme based on a system of voluntary grouping, and the right hon. Gentleman gave way on that and fixed the date of a voluntary scheme at the end of June next year and, therefore, put back the compulsory scheme until the end of June, 1923. On consideration, I have come to the conclusion that it is right to accept the decision of Parliament and to accept the Schedule as it now stands. I would much rather have seen a voluntary scheme. I am bound to admit, after the very careful discussion upstairs and after the clear expression of Parliament's intention, that I do not see how we can go behind the first Schedule. I can conceive no variation of the grouping which there was any chance of Parliament accepting. That being so, I ask myself, Is it not an advantage to accelerate grouping by one year and thereby to gain for the country the advantage of economies and to bring nearer the time, which we all hope will arrive, when surplus revenue is earned and four-fifths of it will go back to the Treasury? That is the right way to look at the matter.

I believe the railways have to accept the compulsory system. We may not like it, but we have to accept it. There is no good in going back and trying for something that is not possible. It is of immense importance to the whole of the interests of the country that grouping should be fixed as soon as possible. All the general managers and heads of the railways have been occupied on non-railway work for a long time past. The War and the negotiations for this Bill have taken the general managers away from their proper work of managing the railways. We now have an entirely new scheme, which some of us regard as hopeful and some regard as hopeless. I belong to the former category. Let us get to work. Until we know for certain that we shall be grouped in the terms of the Schedule by the end of June next, we cannot get to work. When we know that, we can start on the new system. There is every intention of making the grouping a big success. I dislike some parts of the Bill, but I have never concealed my opinion—I do not put the economies as high as the Minister of Transport—that there is something in grouping. After all, it has been the object of everybody concerned with the railways for 30 years past. Once you cease to cling to the vountary principle—I dropped it with reluctance—bring forward the compulsory grouping by one year.

After the long and weary hours spent in Committee in discussing this part of Clause 1 it is an extraordinary thing to find the Minister coming down and throwing it overboard altogether. I recall the pleas which the right hon. Gentleman made for the voluntary arrangement. Hon. Members will remember the flowing eloquence of the Minister of Transport in favour of voluntary arrangements. Then we had a great fight for the words which provide for the hearing of any representative body of traders. Eventually we gained a great victory. The Minister of Transport gave way to us and promised that the people whose apprehensions were being aroused would have every opportunity of being heard. Now the whole thing has gone. I am surprised that the hon. and gallant Member who has just spoken, who had expressed some sympathy with certain variations in the Schedule, should have changed his mind and accepted the final grouping laid down. I wish to ask whether there has been any further arrangement made be- tween the Minister of Transport and the railway companies? Speaking as a private member of the Standing Committee, who did not represent any railway group, but was attempting, perhaps badly, to represent his constituency in regard to railway interests, I say that throughout the work of the Standing Committee has been a succession of dumb play and the beating of swords on bucklers, while the real negotiations went on behind the scenes between the directors of the great railway companies and the Ministry, or possibly between the great territorial interests of Scotland and the Ministry. All the voluntarism which was in the Bill is at an end.

I certainly explored the situation, but I must say that it was impossible even to get a hearing of any sort outside the Committee until we made it clear that we were prepared to fight for certain heads.

I had some conversation with the hon. Baronet with regard to the support of the Scottish claims, but he forgot the arrangement a few minutes after, when he had got what he wanted. That can be settled between us later. I had not intended to bring it forward. What is being given away now? How do we know that between this month of July and the last day of June, 1922, on the further examination of this complicated subject variations of the grouping may not be most advantageous? How do we know that the last word has been said with regard to the grouping of the railway in which I am interested?

The right hon. Gentleman is right; it has not been said. The throwing over of this voluntary grouping is a retrograde step, and if I can get anyone to support me I intend to divide against the Amendment. I wish to ask a question. If we accede to this Amendment do we weaken in any way the right of traders to be heard? On the face of it I do not think we do, but I wish to be certain on the point.

The hon. and gallant Gentleman has talked a great deal about agreements made upstairs. As a humble member of the Standing Committee I never made an agreement with anyone, and therefore the hon. and gallant Member must not include all the members of the Committee in the very sweeping indictment which he made against them and against the representatives of the Government.

I did not include the right hon. Baronet, and I apologise if he thinks that I did so.

I am in favour of voluntary grouping and always have been. I think that nothing could be worse than compulsory grouping or compulsory amalgamation. You are going to take people who may or may not desire under certain circumstances to amalgamate, and you will say to them, "Whatever your desires are, whatever terms you desire, they are all to be set aside and some body of persons, in this case three gentlemen, are to decide for you the terms on which you are to be amalgamated compulsorily." What sane business firm would ever agree to be amalgamated compulsorily on terms which they did not know or understand and by certain people who were not appointed by themselves? The thing seems to me to be absolutely absurd. I fought for the deletion of compulsory grouping in the Committee, on the question that Clause 1 stand part of the Bill. I am not at all sure that I ought not to have moved to leave out the Clause. It is now too late to do that.

I shall support the Minister on this occasion because the voluntary grouping which is allowed under this Clause is a snare and a delusion. There is nothing voluntary about it. The parties concerned cannot make a variation unless it be approved by the Minister of Transport. Therefore all that will happen will be that between now and 30th June next, supposing a variation was proposed, a considerable time and considerable money would be spent in arranging this variation and puttng it before the Minister, and when you had done that you might be obliged to hear any number of traders or any body of persons representing any locality. You might have every single local authority in the area affected coming to the Minister, just when he wanted to be away in the autumn, to discuss whether or not there should be these variations. In the circumstances I do not think there is anything voluntary about it. If we are to make this Bill a success the sooner we endeavour to submit to the inevitable and see if we cannot make something workable out of the chaos, the better. I have an Amendment down to the same effect as the Amendment in the name of the Minister of Transport, and I shall be quite willing to tell with him if he so desires on that Amendment.

I have viewed the proposal of the Minister with some degree of suspicion. After the speech of the last speaker I am quite convinced that to carry this would be detrimental to the public interests. In our debates upstairs, on the numerous occasions when I had the pleasure of sitting next to him, the right hon. Baronet said nothing in the public interest. With the greatest consistency he supported the interests of the railways. Now that he is in favour of the elimination of this proviso all my instincts are aroused to see what it really means. It means that the public will have no "look-in" at all as to any variation of the grouping fixed now. I would remind hon. Members of what took place upstairs. The interest of the public was to be specifically safeguarded by the insertion of these words. It was sought to provide power for a body of persons representing a trade of locality to bring their views to the notice of the Minister, and if they could to persuade him to vary the grouping as desired. To that extent, the public interest had an opportunity of being represented; there would have been an opportunity of the public view being heard, and of necessary alterations being made. There was a prolonged and very keen Debate upon that, and ultimately the words were inserted. What are the reasons adduced to-day, for the elimination of the whole proviso? The reasons given by the Minister, are that he has had representations made to him by some railways, and some important bodies of traders. The House would like to know who they are. I can imagine who the railways are, but I want to know who are the important bodies of traders, who seek to strike out of the Bill the safeguard which was put there in their interests, and upon what grounds they ask it to be done. It seems to me, unless some really good ground is shown against it, the decision arrived at upstairs, should be maintained by the House. Before I am persuaded not to divide against the proposal, I want to be fully and fairly convinced that it is in the public interest that this safeguard which was inserted upstairs should be eliminated downstairs.

I do not know whether the right hon. Gentleman the Member for Peebles (Sir D. Maclean) realises the great difference between this Amendment, and the one which appears later on, bringing forward the time of amalgamation by one year. This, of course, does take away from the public the right which the Committee conferred, and places the whole responsibility for the grouping upon the House of Commons, because once the House has passed the Schedule there will be no possible variation. It is, however, particularly desirable that we should get rid of delay in the formation of the groups. Each company knows the group to which it desires to belong, and the sooner it is able to act, the sooner will a basis of amalgamation be arrived at. The other Amendment is a very different thing; I shall object to it very strongly indeed, but I do not object to this.

What has been said by the right hon. Member for Peebles (Sir D. Maclean) affords one further proof that the procedure adopted with this Bill was unsatisfactory. This Bill should have been sent to a Private Bill Committee. In that case, we should have had the information which the right hon. Gentleman desires we should have. He asks, "Who are the railway companies, and the private traders who have made representations on this matter?" If this Bill had gone to a Private Bill Committee we should have had the answer to that question. In regard to the merits of this Amendment, apart from questions of Procedure, I must say I turned my back with very great regret, on the principle of voluntary grouping. The arguments advanced in favour of the Amendment by the Minister, and the hon. and gallant Member for Durham (Major Hills), not to speak of the right hon. Gentleman the Member for the City of London (Sir F. Banbury), have very great weight, but those arguments really apply to the pooling of the receipts, rather than to the reorganisation of the capitals of the constituent companies. It is perfectly true that the grouping of railways, so far as it relates to the pooling of receipts, may possibly eventuate to the benefit of the public. I am not prepared to say that it will, but I am ready to admit that it may, and so far as pooling receipts is concerned, there is an argument for the Amendment now being considered. But the amalgamation and reorganisation of the capitals of the companies, within the respective groups, is not a matter which concerns the public at all. It is a matter which concerns the companies, and which should be arranged by the voluntary action of the companies, and it can only be equitably arranged, if ample time is given for the consideration of the scheme. For that reason, I am opposed to the Amendment. If the Amendment proposed only that there should be pooling of receipts, and if the larger, more difficult, and more complicated question of the amalgamation of capital had been left over, then it would have been a different matter.

I am amazed at the speech we have just heard, because from it one would conclude that the hon. Member who delivered it had never been in negotiation.

Wait a moment. Just imagine the innocence with which the hon. Gentleman says that if this Bill were dealt with in a straightforward way; if this were like other Bills—

I never used the words" dealt with in a straightforward way." I said, "If it had been sent to a Private Bill Committee."

After all, the inference is that there have been private negotiations of which the hon. Member knows nothing.

That is what he says, and I suppose that applies to the right hon. Baronet the Member for the City of London as well.

They are both directors of the same company. Let us get down to the real facts and the real point. If they had not been in the minority, and if they had agreed with the original procedure, we would have heard nothing about private negotiations. Do let us face the facts. Is this House of Commons to be told by a minority, who do not happen to agree with the rest of their colleagues, that simply because of that fact arrangements ar taking place behind the back of the House? The fact is, and no one knows it better than the hon. Member for Oxford (Mr. Marriott), that in this Bill and in all Bills introduced into this House there are, in the nature of things, private negotiations with the interested parties. If it were not so, the House of Commons would be faced with much more difficult problems than they are faced with now. We should approach this problem from that point of view. If the principle of any amalgamation is agreed to by this House, this House ought to recognise that that amalgamation cannot be a success if it is to be left open for an indefinite period before any effort is made towards carrying it out. If the House decides that there are to be these groups, it is in the best interests of all parties that we should know exactly what is to be the basis. That, after all, is the object of the Amendment. I hope the House will not be influenced by the fact that this particular company, having failed to get their own way, are making that the basis for an attack on every Clause in the Bill.

With all respect to what has been said by the right hon. Gentleman who has just sat down, and remembering what happened in Committee, and the big fight that was put up there in order to get traders a right of hearing with regard to grouping, I do feel there is more in this Amendment than appears upon the surface. As this Clause appeared in Committee, there was no right given to traders to make any representations in regard to groupings or amalgamation. The hon. Member for Oxford (Mr. Marriott) has said that this is a matter which concerns the railway companies alone. There was a strong feeling in the Committee—indeed it was the feeling of the majority—that not only were the interests of railway companies, but also the interests of the public concerned, and that they also should have consideration. Therefore, after considerable discussion, words were inserted providing that not only traders, but the public at large should be represented. Hon. Members will notice that it is not merely representation of trades, but also of localities, so that a local authority which felt it was going to be put into a disadvantageous position, owing to any particular form of grouping, could make representations to the Minister before such amalgamation took place. Now we are asked to scrap the whole of this proviso. If it had been the original proviso, I do not think there would be so much objection, but when we consider the proviso as it was in the original Bill and as it now is, the circumstances are changed. It will look, on the face of it, as though these words had been inserted in Committee to give traders and localities the right of making representation, and that because of that alteration the Minister, in conjunction with the railway companies, is now seeking to take this course. If we agree to this, I would like to ask the Minister whether he is willing to give traders the same right to make representation when the main grouping takes place. I am aware that the main grouping has to be sanctioned by the House, but there should also be a proviso for the representation of the interests of the trading community, the industrial community, and the public. I hope the Minister, if we sacrifice this proviso, will make provision to meet the point in regard to the grouping under the rest of the Bill.

The proviso which we are discussing, and to which has been referred, as having been inserted after considerable discussion upstairs, was, in the main, in the original Bill. It was put in because it was thought that the companies and the trading interests ought to have the right of putting forward proposals for alterations. The hon. Member for Middlesbrough (Mr. T. Thomson) was emphasising the fact that traders should be able to put forward proposals for alterations and variations in the grouping. It is a complicated thing, and I think the hon. Member is making a mistake, because the proviso which it is proposed to delete provides that constituent companies may make these proposals, and not traders. Then the constituent company making the pro- posal and the trader—and that was what was inserted in the Bill—are entitled to a hearing, but the constituent companies have to make the proposal. The companies come as an association, and they say, "We are now content with the grouping," and it is from them that these proposals have come. They say they do not want this right any more. That is not taking anything from the traders. If the companies do not make the proposals, there is no provision for the trader being covered. It is when the company has made the proposal that the trader has to be covered. The hon. and gallant Member for Central Hull (Lieut.-Commander Kenworthy) asked if the right of hearing was taken from the traders. Certainly it is taken from them, because there will be nothing to be heard on. The proviso is, that the constituent companies may put up schemes for variation, but they do not want to, and they seem to be united upon this.

Even my right hon. Friend the Member for the City of London agrees that they do not want this power at all, and we are therefore taking nothing away from the trader or the public by this Amendment. It is almost impossible to say that so and so speaks for the traders, but we all know that there are certain Members who have made themselves particularly familiar with the traders' case in connection with this Bill, and they have been in touch with the railway companies, and they say that there is no opposition from the traders to this Amendment, and that it is an improvement in the Bill.

I hoped that during the period up to the end of June next the railway companies themselves would be able to settle to bring into the groups the Cheshire Lines Committee, with its mileage of 129 miles owned by three of the companies, and it is on that account that I feel doubtful of the desirability of the Amendment being accepted, but if my right hon. Friend would assure me that, if it were arranged that the Cheshire lines could be brought into the grouping by agreement with the railway companies themselves, the Minister would retain sufficient power to do it on the application of the railway companies at any time, I should be satis- fied. Otherwise I am unable to see how the traders can stand aside during the period up till the end of June next, in which there would be the chance and the opportunity of 130 miles of railway not being left out altogether from the Bill.

I cannot understand the attitude of the hon. Member for Middlesbrough (Mr. T. Thomson) upon this point. This proviso deals with the principle of variation, and the question of the rights of the public with regard to this proviso is a mere detail. In whose hands is the right of variation vested? It is not vested in the public, but either in the group as a whole, or a constituent company, or a subsidiary company. If any one of these three parties desired a variation the public would have a right to come in if they thought their interests were jeopardised by the variation; but the Minister now, I think rightly, says he will take away from these three parties the right of variation, and unless he does, what would happen? If this proviso remained in the Bill, it would mean that he would get parties coming together and working for a variation which would in all probability affect other groups, and we might have endless delays in the amalgamation schemes. Therefore, so far as the public interest is concerned, my opinion is that by the deletion of this proviso it is not going to be affected one iota. I think the Minister is right in what he is doing, and he is certainly hastening on the day when the amalgamations will take place.

The Minister has removed some of my fears in his last speech. I shared some of the apprehensions expressed by the right hon. Member for Peebles (Sir D. Maclean) when he found that the Minister and the right hon. Baronet the Member for the City of London (Sir F. Banbury) were uniting in asking for this deletion. I would like to say, on behalf of those who are not connected with railways, but who have some right to speak on behalf of the traders and, from the House of Commons point of view, on behalf of the public generally, that, although it may be quite true that in removing this proviso you are removing the necessity for any consultation with the traders, I hope the right hon. Gentleman will see that when the Committee upstairs put into the Bill a specific proviso to protect the traders, although the necessity for that may have been removed, the principle should still be recognised, and I hope it will be recognised in some other way in the later part of the Bill, that no rights of traders should be in any way diminished with regard to consultation on any matter. In this particular case the Minister has removed my apprehensions on that point, and I shall not in any way vote against the deletion, but I hope the growing practice of decisions arrived at in Committee upstairs in the public interest being altered or nullified by negotiations, whoever with or however legitimate they may be in certain directions, will be very carefully watched and checked. The hon. and gallant Member for Central Hull (Lieut.-Commander Kenworthy) aroused my deepest sympathy, for he appeared to have a grievance that he was not consulted.

I am not aware of the geographical spot where he conducted his negotiations. They may have been on the open, broad ocean, so far as I know, but I sympathise with him in this matter. I think he has reason to complain that decisions arrived at in Committee upstairs were altered purely as the result of private negotiations, of which no Member of the Committee had any knowledge, and in regard to which the House as a whole had no means of judging as to their justice or advantage. I do not think this applies in this case, but it is necessary that a warning should be uttered that no rights inserted in Committee in the interests of the public should be deleted without some such satisfactory explanation as the Minister has been able to give in this case.

Amendment agreed to.

I beg to move, in Sub-section (2), after the word "companies" ["referred to as amalgamated companies"], to insert the words: This is simply inserting in this Bill Section 94 of the Hull Railways Joint Dock Act of 1899. That Section read very similarly, to the effect that nothing in this Act contained shall alter or affect the provisions of Section 8 of the Act of 1893. We are only asking for the insertion in this Bill of the Section which preserves the right of the Hull Corporation to prevent any amalgamation of the Hull and Barnsley Railway Company with any other railway company without its consent, but that consent shall not be unreasonably withheld. It is not an absolute veto on any amalgamation, and in the event of any question arising between the promoters and the Corporation as to whether such consent was unreasonably withheld, such question shall be referred either to the Railway and Canal Commissioners or the Board of Trade, as the Corporation may determine, for their decision. Therefore all that this Amendment asks for is that if the Corporation do not consent to the amalgamation of the Hull and Barnsley Railway with the North Eastern Railway, as they are at present scheduled in this Bill, the decision shall be made either by the Board of Trade or the Railway and Canal Commission after going into all the facts as to whether the refusal of the Corporation is or is not unreasonably withheld. I submit that this is a provision which ought to be inserted. On eleven different occasions this question has come before Private Bill Committees of the House of Commons, and on every one of these occasions this right of the Hull Corporation has been strictly preserved and safeguarded, and I submit that this provision, which has been preserved on so many occasions, ought not to be done away with by a mere general provision in a large Bill of this type.

6.0 P.M.

The only object of the Amendment being moved is that the Hull Corporation is not agreeable to the Hull and Barnsley Railway Company being amalgamated with the North Eastern Railway Company, and the reason for that is, that if the Hull and Barnsley Railway is so amalgamated, the only two lines serving Hull will be in the same group. The Hull Corporation has no desire to quarrel with the fundamental principles of this Bill or the general system of grouping which the Bill institutes, but what it does ask for is that both railways should not be included in the same group, that the Hull and Barnsley Railway should go into the Midland Group, and that the North Eastern should be in the North Eastern Group. It has been argued that this Amendment cuts at the root of the Bill, but I submit that that is quite wrong, and that it would make absolutely no difference to the economy which this Bill would effect if the Hull and Barnsley Railway were in the Midland Group or in the North Eastern Group, whereas it will make a very great difference indeed to the interests of the port of Hull, and also, I may say, to the South Yorkshire coalfields and other districts in Yorkshire and the Midlands which are served by the Hull and Barnsley Railway, as connected up with the Midland Railway. We are not asking for anything unreasonable. By this Bill, Hull will be deprived of any competition in the way of railway service. If this Bill, as a whole, were a Bill for Nationalisation, which was doing away entirely with competition, I could understand the Government opposing this Amendment, but it is doing nothing of the sort. It is effecting certain amalgamations and reducing the number of independent companies, but it is not doing away with competition. It has been admitted on all hands that there will be competition between the different groups. Other large ports like Liverpool, Bristol, and Manchester will be served by different routes. Hull is the only port at present enjoying the benefits of competition which will be deprived of competition under this Bill. I submit that that is dealing with Hull in an absolutely peculiar manner, which is quite unjustified by the facts, and I do appeal to the House to regard our request as a reasonable one, in that we are only asking for similar treatment to that which is given to the other great ports of this country.

It is argued that if we have the Hull and Barnsley Railway in another group, it will alter the whole geographical purposes of the grouping under this Bill. I submit that it does nothing of the sort. If the scheme of the Bill were that all ports on the west coast or the north-west coast should be in the one group, I quite agree it might be argued that the Hull and Barnsley and the North Eastern Railways ought to be in the same group. But it is not so. Companies in the Eastern Group will have lines to the west coast. I gave the House an instance of that when I said that ports like Liverpool and Manchester will have the service of two, and in some cases even three, different groups, so that the Bill does not provide that within certain districts or on certain sections of the coast there shall not be competition between groups. It leaves that competition. Hull is to be the only district in the country that is to be deprived of the competition at present enjoyed. I submit that that is a most unreasonable position for the Government to take up, particularly when you have the right of this competition granted specifically to Hull by statutory enactment as far back as 1880, confirmed in 1893, and further confirmed in 1899. The Minister of Transport tried a little gibe at us in the Committee upstairs by saying that we had to go back to 1880 to make out our case. I ask him how that is so, when there is a provision as recently as 1899 specifically inserted in an Act of Parliament. He says there is nothing peculiar about Hull. [HON. MEMBERS: "Kenworthy!"] I am not speaking of its representation in this House. I think it enjoys the distinction of being represented in a manner, at any rate, which is not silent. The right hon. Gentleman said that there was nothing peculiar about the position of Hull in this matter, and yet when he met a deputation which came from Hull, I myself heard him say that he admitted that Hull was in a unique position, and that in this respect it was the only port in the country that had special statutory provisions, and he suggested possibly he would be able to give it special and separate treatment in the way of a special committee. Yet in Committee upstairs he went so far in the strength of his advocacy against our Amendment that he said there was nothing peculiar about the position of Hull. Is there nothing peculiar about Hull being sorted out alone from the ports of this country and deprived of competition? Is not that peculiar treatment?

Not one word did the right hon. Gentleman say in his answer to justify treating Hull in a way quite different from the other parts of the country. He tried to get over our objection by conjuring up fears as to what might happen if the Hull and Barnsley Railway joined in the Midland Railway group. He said that if it were not in the interests of the North Eastern group solely to develop the interests of Hull, they might spend their money on the other ports of the East Coast to the disadvantage of Hull, and that, in effect, it would be much better for us to have only one group providing facilities to the port, whose interests would be solely in the port and not shared by another group. I do not think that argument quite deserves any serious attention, when we remember that the North Eastern Railway has invested in the Port of Hull capital to the extent of £20,000,000. I ask any hon. Member whether it is reasonable to suppose that the North Eastern Railway is going to allow this hugh capital, which is sunk in the Port of Hull, not to be developed to its best extent? Reasons of that kind were given by the right hon. Gentleman against a similar proposal to this in Committee. I do submit that they are not reasons which will commend themselves to the judgment of the House, and that they are not reasons which will overcome the statutory position established since 1880 of having this right of refusing an amalgamation between the Hull and Barnsley Railway and any other company without the consent of the corporation. If that consent be unreasonable, then let the matter be gone into and thrashed out thoroughly, either by the Board of Trade or the Railway and Canal Commission, when all the facts can be gone into, when the parties can be heard and their case presented. That is all we are asking the House in this Amendment—simply that if Hull is to be treated in this individualistic way, differently from any other port, at any rate it shall have the right of being heard by going to the Board of Trade or the Railway and Canal Commission, and putting its case before them. I hope the House will think this Amendment reasonable, and give it support.

There is another Amendment on this subject relating to the Schedule. I should desire these points to be taken separately. There is an Amendment later to transfer this particular railway from one group to another, but I put this Amendment as an alternative proposition separate from the other.

I beg to second the Amendment.

I do not desire to keep the House for long, after the very able and eloquent speech by my hon. and gallant Friend the Member for South West Hull (Major Entwistle). This Amendment was not brought forward in Committee, and it deals with a different matter from the one we argued in Committee, and to support which we hope to persuade the House later. We have an Amendment later, as you, Sir, pointed out, to shift the Hull and Barnsley Railway from one group to another group. This is a different matter altogether, and simply confirms the right of veto conferred on the Corporation of Hull by successive Acts of this House. The Minister of Transport always declared that we have in Hull a fetish about this railway—an idol, and he poses as the iconoclast, the breaker of that idol. I would remind the House of what most hon. Members are aware, that for many years, ever since the Hull and Barnsley Railway was built by the efforts of the people of Hull, the North Eastern Railway interests have endeavoured to over-ride the veto of the people of Hull. The present Minister of Transport is, of course, as everyone knows, intimately connected with the North Eastern Railway— or was—and he took the very able officials of the North Eastern Railway in great numbers to man the Ministry of Transport when it was formed. By that unfortunate accident, from the point of view of Hull, the Minister of Transport is in a position to bring forward this Bill, and get, by a stroke of the pen, in a complicated Measure of this sort, what they have failed to do in Acts of Parliament fought upstairs in Private Bill Committees. We invite hon. Members present to-day to support us in not permitting this over-riding of a constitutional right of veto, fought for at great expense by the Corporation of Hull. This Amendment is down in the names also of two distinguished hon. Members belonging to the Unionist party who represent the other two divisions of Hull. I mention that because this is no party question at all. The people of Hull of all parties are absolutely unanimous on this point of keeping the veto. I will read one or two lines of each Act showing how strong the veto was. The Act of 1880 said:

I trust the House will not accept the Amendment, because, in spite of what has been said by those in favour of it, the Amendment will cut across the fundamental principles of the Bill. After all, the Amendment seeks to preserve something for Hull Corporation which is not extended to any other party or any other interest involved in this great scheme of railway reorganisation.

Never mind about them. Let me try to explain. The principle is that the railways shall be so grouped that they will be able to effect economies in working that will enable them, not only to give to the British public better service so far as goods and freightage is concerned, but to give to the public better service both as to goods, rates, and lower passenger fares than at present. That is the fundamental principle of the Bill. The idea of the grouping is to effect economy. I understand you, Mr. Speaker, have limited the discussion on this Amendment to the point raised by the Hull Corporation, which claim that some old Statute should be retained by them. Let us look at that, and see how far it will carry us. The idea of the Bill, so far as the Eastern Counties are concerned, is that there should be a main trunk line from London right to the north of Scotland, which will serve the Eastern Counties. There will be one Eastern main line and one Western main line

In addition to that there are certain running powers which have hitherto been exercised by the railway companies in the Western Group with which it is not proposed under this Bill to interfere. That is, then, the main principle of the Bill. The Hull Corporation seeks, in addition to that, to be amalgamated with another group, which geographically is entirely outside the whole scheme and policy of the grouping of the railways. [HON. MEMBERS: "No!"] Of course, that is what is proposed, and hon. Members who interrupt me know that it is the intention at some time to make the point with which I am dealing, and so does everyone who has followed the Bill in Committee. Take the case of the grouping. There are five or six railway companies involved in this new group. Some of these companies have a good service and financially are in a good position. There are certain other companies in the same group who financially are not nearly in so good a position. There is the North Eastern Railway Company, which serves a populous and wealthy district—

Yes, and is well managed. I know, because I used to work there! They say: "We do not desire to be grouped with the less wealthy, less prosperous, and less influential systems in the north of Scotland." I can quite understand the Great Eastern Railway Company, which is also a wealthy company, serving a prosperous district, taking precisely the same view. The right hon. Gentleman accepts the position with which we are faced: these companies say—and say rightly—"If we are to be compulsorily grouped then we ought to be grouped in such a way as will make the grouping as perfect as possible." The Hull and Barnsley Railway is a small company commencing at the port of Hull and finishing nowhere. It does not come at all into the Western Group. Therefore the more prosperous companies would be entitled to say: "If you are going to cut across the system by bringing in a branch line we are entitled to object, because it will ruin the financial prospects." If you are going to allow a system to run in conflict with and in competition to, and fundamentally in opposition to, the scheme of grouping system, then, it is bad. The Hull and Barnsley Railway could not be joined with any other railway except the Midland, but at the present time the Midland Railway Company have running powers over the Hull and Barnsley Railway into the port of Hull, and it is not proposed in this Bill to interfere with those running powers. The Western Group, through the Midland Railway, will still continue, if they so desire, to exercise those running powers into the port of Hull if they can be economically and successfully worked.

As I think, the Minister in Committee upstairs described it, this matter has become a fetish with the Hull Corporation. Until practically a few weeks ago I was a railway workman, and I want to say this frankly to the House, I wrought long hours, but—and my case is the case of thousands—they were hours in which I did no work, and for this the company had to pay. It was not due to my fault, or any circumstance of the company, but entirely to a set of circumstances which my hon. Friends from Hull desire to perpetuate and continue in the service. I want to say quite frankly to the Hull Corporation that on the lines of this Amendment you will never get a successful and economic railway service in this country, and you will not get that to which the British public are entitled to expect.

I was very glad to hear the speech of the hon. and gallant Member for Hull (Lieut.-Commander Kenworthy). He made a great point that Acts of Parliament were passed as recently as 1880 and 1883 should not be disregarded. I agree with him, but I am rather surprised that he should have brought this forward because, in the first-place, I do not think he voted against the Second Reading of this Bill. If so, he was correct in that instance. Whether we are in agreement or not he seems to forget in his advocacy that this Bill gives power to override Acts of Parliament and alter and abate them. Therefore if that can be done once in the Bill no argument can be brought forward to say that Hull—whether or not a peculiar place—shall be lifted from the arrangements which have to apply to every other railway affected by this Bill. The hon. Gentleman who has just sat down pointed out that the Midland Railway Company, which I believe is the company to which the Hull and Barnsley Railway desire to be transferred—

I think my right hon. Friend is wrong. It is the Hull Corporation that desire that, not the railway company.

But the Midland have running powers over the Hull and Barnsley and surely that ought to satisfy them? I myself am against all this compulsory grouping, but if there is to be compulsory grouping of this sort it is impossible to consider what the effect will be by transferring the Hull and Barnsley Railway, not to the eastern, but to the western group. The western group is far and away the most powerful group that will come into existence. [HON. MEMBERS: "No!"] Yes, it will consist of the London and North Western Railway Company, the Midland Railway Company and the Lancashire and Yorkshire Railway Company.

On a point of Order. Is it competent for the hon. Baronet to speak as if he were in an upstairs Committee, and carry on a conversation with those about him?

There are the three companies I have named. Their capital is far greater than the capital of the Great Northern, the Great Eastern, the Great Central, and the North Eastern Railway Companies. Consequently, you would not add to the most powerful group, the group with the greatest amount of money and the greatest capital, the Hull and Barnsley Railway. That will alter the whole scheme of the Bill. The general purpose ought not in any way injuriously to affect Hull, because the Midland Company has running powers over the Hull and Barnsley. If it is right—I do not think it is—to have these particular powers, then I think there can be no doubt that the proper group to which the Hull and Barnsley Railway should belong is the eastern and not the western group. For these reasons I shall certainly support the Ministry. I am, indeed, a devoted follower of the Ministry. I am supporting the speech that the right hon. Gentleman is going to make. In these circumstances, I think the House ought not to have any further hesitation in respect of the Amendment.

The form in which this Amendment appears on the Paper does infinite credit to the ingenuity of one or other of the hon. and gallant Members who moved and seconded it. As I understand your guidance, Mr. Speaker, it rather prevents a discussion on the matter as to whether the Hull and Barnsley Railway should be in one group or the other, and it is really designed and intended to be a preliminary canter for what I hope will be a greater race when they come to the Schedule if you, Mr. Speaker, see your way at that time to allow that competition to proceed. I quite understand the difference and I am going now to try and explain what is this difference. The present Amendment does not necessarily interfere with the position of the Hull and Barnsley Ralway in the group in which it finds itself in the Schedule at this time, but it seeks to bring into operation a provision of an agreement which received statutory sanction in 1880, giving the right to the Hull Corporation to veto any amalgamation of that company with another, but that veto is to be subject to an appeal either to the Board of Trade or to the Railway and Canal Commission at the option of the corporation. I invite the House to see what was that agreement. The Hull Corporation in 1880 was selling a plot of land to a railway company, and in the agreement they provided that that railway company should for all time remain independent unless it got their consent. This is the dead hand of 1880 which is receiving support from the two hon. and gallant Members.

That has received statutory sanction time and time again, as they say in their speeches. Let us see what the position was then. They were afraid of the North Eastern Railway Company. The North Eastern Railway Company by the grouping of this Bill will cease to exist, and therefore the tyrant they feared in 1880, and which has become a ghost to them ever since, cannot even walk by night after this Bill, because it will have ceased to have any physical or spiritual existence at all. It will have become part of the greater group stretching from the North of Scotland to St. Pancras. If they are to be adversely affected, it must be by the group, it must be by the operation of the new directorate of that very much larger combination. Their fears, therefore, are not well founded. Secondly, my hon. and gallant Friend the Member for Central Hull (Lieut.-Commander Kenworthy) was not quite so unsuccessful a negotiator as he has sought to impress upon the House. He has been persistent and, I think, to some extent successful, because he has made this position. My right hon. Friend the Minister of Transport has admitted on one or two occasions that Hull has this exceptional statutory position.

It must be common ground with everyone in this House that no one would desire to interfere with the trade and transport facilities of a great port like Kingston-upon-Hull. Surely we stand there as our starting point. No one desires to interfere except for the advantage of Hull with anything that exists. At present they have got the most disgraceful piece of competition in the whole land. It is a classic illustration of waste. The two railways are there and the trader has to have his traffic carted from one if he wishes to send it to the Alexandra Docks. The trader who wishes to keep coal stocks to export there from either of the two docks must keep two stocks. The trader who wishes to have facilities cannot physically be linked up with both railways. I am not going to argue that particular matter, which seems to me to be more relevant to the Amendments to the Schedule, if that should ever come under the consideration of the House.

But what have we done to protect not only Hull, as we hope to, but to endeavour to protect all cases from there being a lack of railway facilities? If hon. Members will look at Clause 14 of the Bill, they will see there that we have introduced much greater powers than have ever existed before in the interests of the trading community to secure that there shall be full and ample facilities for the trade of the country. This Bill would fail in its main purpose unless it succeeded in securing two things, first the elimination of waste, and secondly, an extension of facilities. In Clause 14 we give to representative bodies much greater rights than they have ever had before to secure that they shall have full and ample facilities.

There is one other matter I should like to call the attention of the House to and which should really satisfy my hon. and gallant Friends who are responsible for this Amendment. If hon. Members look at the Government Amendment on the Paper a little further down, they will find there what I think is an extremely important Amendment which I will only indicate at this moment as far as it is relevant to this consideration. It is further proposed that the new board of the large amalgamated companies shall have power to set up committees to deal with particular matters which might be referred to them. Those committees may be local in character. There might perchance, and probably would be a committee that would have some direct interest in this particular district. Power is given to place upon the committees not only members of the ordinary board, but local shareholders, and under those circumstances we hope that there will be a system of committees established, so that every interest, every right, every desire of the trading community may be fully protected. With this explanation I trust the House will find its way clear -to come to a conclusion upon this particular matter.

I want to say one or two words about this Amendment, and I wish to point out how absolutely unanimous is the protest of Hull against their right to veto being taken away from them. The Parliamentary Secretary

talks about the dead hand of 1880. I do not see why because the agreement is an old one it should not be respected. If this veto is to be taken away, and Hull is to be deprived of the veto it has had for the past 40 years, it should only be by the usual procedure. I do hope the House will realise that this is a matter which concerns us very vitally.

Question put, "That those words be there inserted in the Bill."

The House divided: Ayes, 19; Noes, 326.

Division No. 293.]

AYES.

[6.40 p.m.

Acland, Rt. Hon. Francis D.

Kenworthy, Lieut.-Commander J. M.

White, Charles F. (Derby, Western)

Bramsdon, Sir Thomas

Lane Fox, G. R.

Wilson, Capt. A. S. (Holderness)

Forrest, Walter

Mills, John Edmund

Wilson, W. Tyson (Westhoughton)

Gretton, Colonel John

Murray, Dr. D. (Inverness & Ross)

Gritten, W. G. Howard

Myers, Thomas

TELLERS FOR THE AYBi.—

Hogge, James Myles

Nail, Major Joseph

Major Entwistle and Mr. Mur-

Kelley, Major Fred (Rotherham)

Percy, Lord Eustace (Hastings)

chison.

Kennedy, Thomas

Sturrock, J. Leng

NOES.

Agg-Gardner, Sir James Tynte

Churchman, Sir Arthur

Geddes, Rt. Hon. Sir E. (Camb'dge)

Armstrong, Henry Bruce

Clay, Lieut.-Colonel H. H. Spender

George, Rt. Hon. David Lloyd

Astbury, Lieut.-Com. Frederick W.

Clynes, Rt. Hon. John R.

Gibbs, Colonel George Abraham

Bagley, Captain E. Ashton

Coats, Sir Stuart

Gilbert, James Daniel

Baird, Sir John Lawrence

Cobb, Sir Cyril

Gillis, William

Baldwin, Rt. Hon. Stanley

Cockerill, Brigadier-General G. K.

Gilmour, Lieut.-Colonel Sir John

Balfour, George (Hampstead)

Colfox, Major Wm. Phillips

Glanville, Harold James

Balfour, Sir R. (Glasgow, Partick)

Colvin, Brig.-General Richard Beale

Goff, Sir R. Park

Banbury, Rt. Hon. Sir Frederick G.

Conway, Sir W. Martin

Gould, James C.

Barker, G. (Monmouth, Abertillery)

Coote, Colin Reith (Isle of Ely)

Goulding, Rt. Hon. Sir Edward A.

Barnes, Rt. Hon. G. (Glas., Gorbals)

Cope, Major William

Graham, W. (Edinburgh, Central)

Barnes, Major H. (Newcastle, E.)

Cowan, D. M. (Scottish Universities)

Gray, Major Ernest (Accrington)

Barnett, Major Richard W.

Cowan, Sir H. (Aberdeen and Kinc.)

Grayson, Lieut.-Colonel Sir Henry

Barnston, Major Harry

Craig, Captain C. C. (Antrim, South)

Green, Albert (Derby)

Barrand, A. R.

Craik, Rt. Hon. Sir Henry

Green, Joseph F. (Leicester, W.)

Beauchamp, Sir Edward

Croft, Lieut.-Colonel Henry Page

Greene, Lt.-Col- Sir W. (Hack'y, N.)

Beckett, Hon. Gervase

Davidson, Major-General Sir J. H.

Greenwood, Colonel Sir Hamar

Bellairs, Commander Cariyon W.

Davies, Alfred Thomas (Lincoln)

Greer, Harry

Benn, Sir A. S. (Plymouth, Drake)

Davies, Sir David Sanders (Denbigh)

Greig, Colonel Sir James William

Benn, Capt. Sir I. H., Bart. (Gr'nw'h)

Davies, Thomas (Cirencester)

Griffiths, T. (Monmouth, Pontypool)

Betterton, Henry B.

Davison, Sir W. H. (Kensington, S.)

Grundy, T. W.

Bigland, Alfred

Dawes, James Arthur

Guest, Capt. Rt. Hon. Frederick E.

Birchall, Major J. Dearman

Denniss, Edmund R. B. (Oldham)

Guest, J. (York, W. R., Hemsworth)

Blair, Sir Reginald

Doyle, N. Grattan

Hall, Lieut.-Col. Sir F. (Dulwich)

Boscawen, Rt. Hon. Sir A. Griffith-

Du Pre, Colonel William Baring

Hall, F. (York, W.R., Normanton)

Bowerman, Rt. Hon. Charles W.

Edge, Captain William

Hall, Rr-Adml Sir W.(Liv'p'l, W.D'by)

Bowles, Colonel H. F.

Edwards, Allen C. (East Ham, S.)

Hancock, John George

Bowyer, Captain G. W. E.

Edwards, C. (Monmouth, Bedwellty)

Hannon, Patrick Joseph Henry

Breese, Major Charles E.

Edwards, G. (Norfolk, South)

Harmsworth, C. B. (Bedford, Luton)

Briggs, Harold

Edwards, Major J. (Aberavon)

Harmsworth, Hon. E. C. (Kent)

Brittain, Sir Harry

Edwards, Hugh (Glam., Neath)

Harris, Sir Henry Percy

Broad, Thomas Tucker

Elliot, Capt. Walter E. (Lanark)

Hartshorn, Vernon

Bromfield, William

Elveden, Viscount

Hayward, Evan

Brown, Major D. C.

Erskine, James Malcolm Monteith

Henderson, Major V. L. (Tradeston)

Brown, James (Ayr and Bute)

Evans, Ernest

Henry, Denis S. (Londonderry, S.)

Brown, T. W. (Down, North)

Falcon, Captain Michael

Herbert, Dennis (Hertford, Watford)

Bruton, Sir James

Falle, Major Sir Bertram Godfray

Hewart, Rt. Hon. Sir Gordon

Buckley, Lieut.-Colonel A.

Fell, Sir Arthur

Higham, Charles Frederick

Bull, Rt. Hon. Sir William James

Finney, Samuel

Hills, Major John Waller

Burn, Col. C. R. (Devon, Torquay)

Fisher, Rt. Hon. Herbert A. L.

Hinds, John

Butcher, Sir John George

FitzRoy, Captain Hon. Edward A.

Hirst, G. H.

Cairns, John

Flannery, Sir James Fortescue

Holmes, J. Stanley

Campbell, J. D. G.

Ford, Patrick Johnston

Hope, Sir H. (Stirling & CI'ckm'nn, W.)

Cape, Thomas

Foreman, Sir Henry

Hope, J. D. (Berwick & Haddington)

Carr, W. Theodore

Forestier-Walker, L.

Hopkins, John W. W.

Casey, T. W.

Foxcroft, Captain Charles Talbot

Horne, Sir R. S. (Glasgow, Hillhead)

Cecil, Rt. Hon. Evelyn (Birm., Aston)

Fraser, Major Sir Keith

Hunter, General Sir A. (Lancaster)

Chadwick, Sir Robert Burton

Fremantle, Lieut.-Colonel Francis E.

Hunter-Weston, Lieut.-Gen. Sir A. G.

Chamberlain, Rt. Hn. J. A. (Birm., W.)

Galbraith, Samuel

Hurd, Percy A.

Chamberlain, N. (Birm., Ladywoood)

Gange, E. Stanley

Hurst, Lieut.-Colonel Gerald B.

Child, Brigadier-General Sir Hill

Ganzoni, Sir John

Inskip, Thomas Walker H.

Irving, Dan

Oman, Sir Charles William C.

Starkey, Captain John Ralph

James, Lieut.-Colonel Hon. Cuthbert

O'Neill, Major Hon. Robert W. H.

Stephenson, Lieut.-Colonel H. K.

Jameson, John Gordon

Ormsby-Gore, Hon. William

Stewart, Gershom

Jephcott, A. R.

Palmer, Major Godfrey Mark

Sueter, Rear-Admiral Murray Fraser

Jesson, C.

Parker, James

Sugden, W. H.

Jodrell, Neville Paul

Parkinson, John Allen (Wigan)

Surtees, Brigadier-General H. C.

John, William (Rhondda, West)

Parry, Lieut.-Colonel Thomas Henry

Sutherland, Sir William

Johnson, Sir Stanley

Pearce, Sir William

Swan, J. E.

Johnstone, Joseph

Pease, Rt. Hon. Herbert Pike

Taylor, J.

Jones, G. W. H. (Stoke Newington)

Pennefather, De Fonblanque

Terrell, George (Wilts, Chippenham)

Jones, Henry Haydn (Merioneth)

Perring, William George

Thomas, Rt. Hon. James H. (Derby)

Jones, J. T. (Carmarthen, Llanelly)

Phllipps, Sir Owen C. (Chester, City)

Thomas, Brig.-Gen. Sir O. (Anglesey)

Kellaway, Rt. Hon. Fredk. George

Pinkham, Lieut.-Colonel Charles

Thomas, Sir Robert J. (Wrexham)

Kerr-Smiley, Major Peter Kerr

Pollock, Sir Ernest Murray

Thomson, T. (Middlesbrough, West)

Kinloch-Cooke, Sir Clement

Pratt, John William

Thomson, Sir W. Mitchell- (Maryhill)

Larmor, Sir Joseph

Prescott, Major W. H.

Thorpe, Captain John Henry

Law, Alfred J. (Rochdale)

Pretyman, Rt. Hon. Ernest G.

Tickler, Thomas George

Lawson, John James

Rae, H. Norman

Townley, Maximilian G.

Lewis, Rt. Hon. J. H. (Univ., Wales)

Raeburn, Sir William H.

Tryon, Major George Clement

Lewis, T. A. (Glam., Pontypridd)

Randles, Sir John Scurrah

Waddington, R.

Lindsay, William Arthur

Rankin, Captain James Stuart

Wallace, Thomas Brown (West Down)

Lloyd-Greame, Sir P.

Raper, A. Baldw'n

Walsh, Stephen (Lancaster, Ince)

Locker-Lampson, G. (Wood Green)

Ratcliffe, Henry Butler

Walters, Rt. Hon. Sir John Tudor

Locker-Lampson, Com. O. (H'tingd'n)

Rawlinson, John Frederick Peel

Walton, J. (York, W. R., Don Valley)

Lorden, John William

Rees, Sir J. D. (Nottingham, East)

Ward, Col. J. (Stoke-upon-Trent)

Lowe, Sir Francis William

Rees, Capt. J. Tudor- (Barnstaple)

Ward, William Dudley (Southampton)

Lowther, Major C. (Cumberland, N.)

Reid, D. D.

Warner, Sir T. Courtenay T.

Lowther, Maj.-Gen. Sir C. (Penrith)

Rendall, Athelstan

Warren, Sir Alfred H.

Lunn, William

Richardson, Alexander (Gravesend)

Waterson, A. E.

Lyle, C. E. Leonard

Richardson, R. (Houghton-le-Spring)

Wedgwood, Colonel Josiah C.

Lyle-Samuel, Alexander

Roberts, Rt. Hon. G. H. (Norwich)

Weston, Colonel John Wakefield

M'Counell, Thomas Edward

Roberts, Sir S. (Sheffield, Ecclesall)

Whitla, Sir William

M'Donald, Dr. Bouverie F. P.

Robertson, John

Wignall, James

M'Guffin, Samuel

Robinson, S. (Brecon and Radnor)

Wild, Sir Ernest Edward

Mackinder, Sir H. J. (Camlachie)

Robinson, Sir T. (Lanes., Stretford)

Wilkie, Alexander

McLaren, Hon. H. D. (Leicester)

Rodger, A. K.

Williams, C. (Tavistock)

M'Lean, Lieut.-Col. Charles W. W.

Rothschild, Lionel de

Williams, Col. Sir R. (Dorset, W.)

McNeill, Ronald (Kent, Canterbury)

Roundell, Colonel R. F.

Willoughby, Lieut.-Col. Hon. Claud

Macpherson, Rt. Hon. James I.

Royce, William Stapleton

Wills, Lt.-Col. Sir Gilbert Alan H.

Malcne, Major P. B. (Tottenham, S.)

Royden, Sir Thomas

Wilson, James (Dudley)

Manville, Edward

Royds, Lieut.-Colonel Edmund

Wilson, Rt. Hon. J. W. (Stourbridge)

Marriott, John Arthur Ransome

Rutherford, Colonel Sir J. (Darwen)

Wilson, Lt.-Col. Sir M. (Bethnal Gn.)

Martin, A. E.

Rutherford, Sir W. W. (Edge Hill)

Wilson, Col. M. J. (Richmond)

Matthews, David

Samuel, A. M. (Surrey, Farnham)

Winterton, Earl

Middlebrook, Sir William

Sanders, Colonel Sir Robert Arthur

Wise, Frederick

Mildmay, Colonel Rt. Hon. F. B.

Scott, A. M. (Glasgow, Bridgeton)

Wolmer, Viscount

Mitchell, Sir William Lane

Scott, Leslie (Liverpool Exchange)

Wood, Hon. Edward F. L. (Ripon)

Moreing, Captain Algernon H.

Seager, Sir William

Wood, Sir J. (Stalybridge & Hyde)

Morgan, Major D. Watts

Seddon, J. A.

Woolcock, William James U.

Morison, Rt. Hon. Thomas Brash

Shaw, William T. (Forfar)

Worsfold, Cato

Morris, Richard

Shortt, Rt. Hon. E. (N'castle-on T.)

Worthington-Evans, Rt. Hon. Sir L.

Morrison, Hugh

Smith, Sir Harold (Warrington)

Yeo, Sir Alfred William

Munro, Rt. Hon. Robert

Smith, W. R. (Wellingborough)

Young, E. H. (Norwich)

Murray, Hon. A. C. (Aberdeen)

Smithers, Sir Alfred W.

Young, Sir Frederick W. (Swindon)

Neal, Arthur

Spencer, George A.

Young, Robert (Lancaster, Newton)

Newman, Colonel J. R. P. (Finchiey)

Sprot, Colonel Sir Alexander

Younger, Sir George

Newman, Sir R. H. S. D. L. (Exeter)

Stanier, Captain Sir Beville

Nicholson, Reginald (Doncaster)

Stanley, Major Hon. G. (Preston)

TELLERS FOR THE NOES.—

Norton-Griffiths, Lieut.-Col. Sir John

Stanton, Charles Butt

Colonel Leslie Wilson and Mr.

McCurdy.

The next two Amendments—to leave out Sub-section (3) of Clause 1, and to leave out Clause 2, standing in the name of the right hon. Baronet the Member for the City of London (Sir F. Banbury)—are consequential. I understand that the Minister of Transport does not propose to move his Amendment to Sub-section (1) of Clause 2—to substitute "nineteen hundred and twenty-two" for "nineteen hundred and twenty-three."

On a point of Order. My Amendment to leave out Sub-section (3) of Clause 1 is, of course, consequential, but the next Amendment, to leave out Clause 2, really does not come within that category.

My point in proposing to leave out Clause 2 is that the Clause as it stands sets out an amalgamation of the various groups which cannot be varied or departed from. Clause 2 says there shall be a tribunal which may do certain things. I wish to leave out Clause 2, because it has already been decided that the companies shall be amalgamated, and therefore there is no necessity for it.

I do not think the Bill would read without it as it now stands, and I am afraid that I cannot accept the Amendment.

CLAUSE 2.—(Preparation and settlement of amalgamation schemes.)

(1) The constituent companies in any group may on or before the thirtieth day of June, nineteen hundred and twenty-three, submit to the Minister an amalgamation scheme framed in accordance with the provisions of this Act which has been agreed to by all those companies.

(2) The Minister shall refer to the amalgamation tribunal hereinafter constituted any scheme so submitted to him, and the tribunal, unless it appears to them that the scheme does not conform with the requirements of this Act or that the provisions of this Act relating to the procedure preliminary to the submission of an agreed scheme have not been complied with, shall, confirm the scheme.

(3) If the constituent companies in any group fail to submit an agreed amalgamation scheme framed in accordance with the provisions of this Act on or before the said date, a scheme for the amalgamation of the constituent companies in that group shall be prepared and settled in accordance with this Act by the amalgamation tribunal.

(4) Any two or more constituent companies in any group may after the thirtieth June, nineteen hundred and twenty-two, submit to the amalgamation tribunal a preliminary scheme for the amalgamation of such companies upon such terms as they may agree, and the amalgamation tribunal shall approve any such preliminary scheme unless after hearing such of the other constituent companies in the group as may desire to be heard, the tribunal shall consider such preliminary scheme to be not in conformity with the requirements of this Act or to be inconsistent with or prejudicial to an amalgamation scheme for the group in accordance with the provisions of this Act.

In the confirmation or preparation and settlement of an amalgamation scheme for the group, the amalgamation tribunal shall give effect to any preliminary scheme which shall have been so approved, but so that the interests of the other constituent companies in the group shall not be prejudiced thereby.

Any preliminary scheme so approved shall, subject to such provisions in that behalf as may be therein contained, come into force forthwith and the provisions of Sub-section (2) to (6) of Section seven of this Act shall apply thereto.

(5) Any scheme made in pursuance of the provisions of this Section shall not have effect unless approved by a resolution passed by both Houses of Parliament.

I beg to move, in Subsection (1), to leave out the word "twenty-three," and to insert instead thereof the word "twenty-two."

The effect of the Amendment is this: The Clause deals with the amalgamation of constituent companies in groups. It provides that those companies may, on or before the 30th June, 1923, submit to the Minister an amalgamation scheme framed in accordance with the provisions of the Act. I want to change that date to the 30th June, 1922, and I do so for this reason: Earlier in the day the House passed an Amendment which deleted the period allowed for schemes of voluntary grouping. As the Bill left the Committee it was open to the companies before the 30th June next to submit to the Minister alternative schemes of grouping to those contained in the Bill, and they would have to be approved by Parliament. Then the Bill went on to say that within one year after that date the compulsory scheme of grouping should come into force, and the amalgamation tribunals were to see that the schemes were put into operation by the 1st January, 1924. The scheme of the Bill was therefore this: At the end of June next year there could be voluntary schemes; at the end of June, 1923, there were to be compulsory schemes, and those schemes were to be in operation by the 1st January, 1924.

Seeing that we have struck out the voluntary period, I submit we ought to bring forward all the other dates in consonance with it. The Bill originally was so framed that the date was deferred for one year to enable the companies who wished to do so to group themselves voluntarily. I strongly supported the voluntary system of grouping, but now this House has decided otherwise, and the scheme of grouping laid down in the Schedule has been confirmed. I accept that decision of the Committee. I do not want to go back on it, and since we have gained the best part of a year by striking out the voluntary period, let us bring these schemes into final operation a year sooner than provided in the Bill as it left the Committee. The advantage of that will be this. Grouping has many advocates. Many of us believe it will effect great economies, although perhaps we are not quite so sanguine on this as the Minister of Transport. But if economies can be effected, let us get the grouping at the earliest date possible. When you have got your grouping confirmed, your standard revenue will then come into force, and when you exceed your standard revenue, the excess as regards one-fifth of it is to go to the companies, and four-fifths to the traders in reduction of rates. Therefore, the traders are directly interested in getting the grouping settled and working at the earliest possible date. I understand from what occurred on an earlier Amendment the Minister felt he could not move this particular Amendment in view of the diversity of opinions expressed, but I do appeal to the House to accelerate the date of final grouping, as, until the date is fixed and until the railways are grouped, and physically and financially amalgamated, they cannot get properly to work.

7.0 P.M.

All this uncertainty is very bad for the railways and the public, ańd it would be a very bad thing to all those concerned in the railways if, instead of their being able to attend to the business of running these railways, they were distracted with other matters. It may be said that the time I suggest is too short. Just look at the dates. The Bill we will suppose becomes law on 30th August of this year. Between 30th August of this year, and 30th June of next year, there are 10 months and, therefore, the companies have 10 months in which to submit their schemes for financial amalgamation. All the grouping is settled as soon as this Bill passes, and 10 months is ample time in which to submit your amalgamation terms. If you cannot do it in 10 months, you cannot do it at all. The Bill, with this Amendment, will be that schemes are submitted by 30th June next year. They will come before the tribunal, the tribunal will pass their decisions upon them, and they will come into force in January, 1923, if this Amendment and subsequent Amendments are accepted.

I am quite aware that in Committee I took a different view; that I pleaded for longer time. I pleaded entirely on this ground—that I wanted the voluntary system of grouping. Now matters have gone too far; we have got a system of grouping in the Schedule of the Bill, and I do not think any change is conceivable, especially after the Division we have just witnessed. Since you cannot expect Parliament to assent to any scheme of varied grouping, it is a waste of time to ask for time in which to submit such schemes. I agree that I am arguing on the opposite side to that on which I was arguing in Committee. But I do submit that, if circumstances change, he is a foolish man who does not change with them. In view of these entirely changed circumstances, far the best thing for the railways and the country is to get the whole scheme settled at the earliest possible date; to start our grouping economies and give the best services we can to the public. The railways accept grouping' entirely, and loyally, and they will do their best to make that grouping a real success. I believe there is a great deal in grouping, and I have always supported grouping. I ask the House to let us start with grouping as soon as possible and then we shall realise the economies and reforms we all desire.

I beg to second the Amendment. In doing so, I also plead guilty to being one of those who voted for, and pressed strongly for, extension. I think most of us were very much impressed at the time with the possibility that there might be some form of voluntary grouping. We had no idea the railway companies would have got so far as they have at the present time. All over the country the railways have been arranged in groups. They are actually working together and making out schemes for inter-working, so that at the earliest possible moment they may work as one large unit. Under these circumstances, I am of opinion that the sooner mutual working can be brought into the legal stage the better it will be for everyone concerned. It goes further, because I think there are advantages not only from that point of view but- many others, and this grouping should be got going at the earliest possible moment. My hon. Friend has spoken of the position of the companies in regard to standard revenue, but it goes further, for until the companies are amalgamated and working together we cannot possibly obtain those economies which the Minister has foreshadowed, and until these economies are actually in being it is impossible for the railway companies to consider how far "rates can be reduced; reductions which must take place for the benefit of the public at the earliest possible date. If we are to be kept in a state of flux, not knowing what economies can be made, it stands to reason that the public will suffer, because the railway companies cannot make these concessions, and cannot pass economies on to the general public. Therefore, in the long run, it will be the general public who will suffer.

It may be objected that we are not being given a year as a test period—in order that there may be one year's complete accounts on which to ascertain the respective values of the companies. Trade cannot become normal during that period, and, under these circumstances, no one can pretend that if we had these accounts they would be of any real value for forming a basis of amalgamation. I think you are liable to get this. The railway companies may feel that they have got this year in which to show their worth, and there is a danger that they will during that year endeavour to make their concern as prosperous as they possibly can, with the result that you may get an inflated value for these railways—an inflated value which would be against the interests of the amalgamation and which cannot be good for the country as a whole. I hope this House will see its way to support this Amendment, and that they will agree that it is best for the country, and the railways and the general public, that these amalgamations should take place at the earliest possible date.

I am not going to be altogether terrified by the speech of my hon. Friend behind me who moved this Amendment. I took part in this Debate in Committee, and I pressed for an extension of time. I still do so. The first Amendment we passed to-day has nothing whatever to do with this one; this is a wholly new matter. The objection we had to the original Measure was that, above all things, there had been a very considerable discussion of the position of the Scottish railways. I had pressed, along with the Scottish Members—after a unanimous expression of opinion by everybody in Scotland—for longitudinal grouping, which the Minister agreed to. But there was grave doubt as to the real financial .position of the Scottish companies, and so I was most anxious, and am still anxious, that these companies should not be taken over at a fictitious value. It is suggested that if you take the 1913 revenue it is, in the circumstances, now somewhat fictitious. I do not think so myself, but that was one of the arguments against longitudinal grouping. We said we did not wish these companies taken over at anything better than their value as component parts of a group. We said it was quite impossible that there would be any normal period of sufficient length before June, 1922, and no possibility of the tribunal satisfying itself as to net earnings. That is the position we went on all through, and that position still remains. There is no change in the circumstances, and unless the Scottish railways have a clear year, which means a year ending with the accounting period at 31st March, 1923, in what we hope will be more or less normal circumstances, it is impossible to estimate the value of these concerns. It is desirable at all events that the position should be known, and it can be known only by having a period which was guaranteed in the Bill. We have heard a harrowing tale about the possibility of the railways not being able to deal with standard rates, or charges, or effect economies, because of the delay in the final amalgamating terms which they will have imposed upon them by the group. These final amalgamation terms affect the shareholders more than anybody else, but I have been told to-day that, with agreements existing between the railway companies for years and years, the partners in the groups, knowing they are to be in their groups in 1923, will do nothing in the meantime. Am I going to be told that they not going to set about making their arrangements voluntarily, and that they are going to cut each other's throats and perform antics which were conspicuous in Scotland in connection with the North Eastern and Caledonian Railways? We have had in Scotland what is practically the same thing as grouping, and no trader could ever get a rate quoted. There are private arrangements, and I think the Minister of Transport's proposal gives us, by a long way, a better chance of getting rates for the traders, I hope my right hon. Friend will not fail to give us what may be regarded by the House as a suitable and fair test period before these amalgamations are really final and complete. I am certain that all these bogeys which have been raised do not exist. After all, the railway companies are managed by more or less reasonable people, and I am sure that they will make such an arrangement with one another. I am glad to see that my right hon. Friend agrees with that, and 1 have no fear on that score. I hope that my right hon. Friend, who, no doubt for good reasons, has not moved this Amendment himself, but has left it to be taken up by someone else, will give us his views as to what he considers to be a satisfactory testing period. I shall be glad to know what ho thinks about that. In the meantime we say that a testing period is necessary if we are to have fair terms.

I hope the House will understand that this is not a question which merely affects two sets of railway companies. It is not a question, for instance, between the Midland and North Eastern on the one side and the North British and Caledonian on the other. It is a question which intimately affects the whole community in this country. This Amendment is to determine whether the Bill is to come into operation one year later or one year earlier, and that delay is asked for solely in order to give what is called a testing period, so that each railway company may discover what its net revenue earning capacity may be. When we come to the Clause which deals with the way in which amalgamation is to be brought about, we may have something to say as to the basis upon which the combination should take place, but it does seem to me to be lamentable that, merely in order to provide a test which some railway companies think would be more favourable to them, and in order to make that test more accurate, therefore the whole community should wait a full year for the economies which are to come from the passing of this Measure. If there be any virtue in this Bill, let us have it at the first possible moment. Do not ask us to postpone it simply in order to provide a better test of the basis upon which these capitalistic concerns are to be amalgamated. I dare say, if we had a testing period of two or three years, we might find that some companies could get a little bit more money than others, but, on the whole, it will work out fairly for the body of shareholders as a whole throughout the country, and to delay it in order to give a better chance to one or two companies seems to me to be a confession of the, bankruptcy of our invention as to the basis upon which these companies should be combined. Surely we are not so hopeless of finding a fair basis of combination that we should postpone the introduction of the scheme in order to give this special extra testing year a chance to operate. I know that hon. Members representing Scottish railways think that they are being unfairly treated in this Bill. I can assure them that the ordinary Saxon thinks exactly the same with regard to the Scottish railways. We feel that we are always being pressed to give way to the Scottish railways because they think they are not being treated fairly. It will be absolutely the same for every one concerned if we take the testing period given in the Bill without this additional year. It will be fair all round, and the community as a whole will stand to gain enormously by bringing this Measure into operation at the earliest possible moment.

Anyone would imagine, listening to the speech of my hon. and gallant Friend, that the year 1923 was not in the Bill, and had not been the subject of discussion at all. But it is in the Bill, and it has been agreed to by the Committee upstairs.

I do not know what is going to happen to the Bill. We reached agreement upstairs after a long Debate. Then we come down on to the Floor of the House and we have the Minister moving out an important proviso; and he put down another Amendment on this matter, but left it to someone else to move. We must have same sort of consistency and see exactly where we are. My hon. Friend the Member for Ayr Burghs (Sir G. Younger) has said that in the discussion upstairs it was agreed by the two parties that the Scottish railways, at any rate, require very careful consideration, and I am sure that any attempt to rush this matter too much will result in great disadvantages. I understand, of course, the view which some hon. Members hold, and which they are entitled to hold, that the more swiftly you can bring these combines together the greater case you make out for nationalisation of the railways. That is a perfectly legitimate point upon which to insist, but it is not the basis of the Bill, and it is not the basis upon which it was debated upstairs. It is quite true that this period up to 1923 may be too long, and I admit that there is some force in what I have heard as to that; but to cut off a whole year is to go back upon a very carefully considered opinion upstairs. I therefore take the same line as the hon. Baronet the Member for Ayr Burghs, and suggest that there is a way of meeting the point. I do not know whether it would be by cutting down the period by six months or by three months—that is a matter for argument and discussion; but to make a sweeping cut in this way seems to me to be not at all in consonance with a proper consideration of the work done upstairs. As far as I am concerned, if the Minister is willing to cut the period down by six months, I think that that might meet the general sense.

I should like first to explain to the House why I did not move this Amendment. I put it down because I was told, through the only medium at my disposal, that the railways—in whose interest the extension of time was given— were agreed that they did not require the whole time. When my hon. and gallant Friend challenged me on that, I had to admit that I recollected that it was given under different circumstances, and that was why I did not move the Amendment. It was simply in order that I might not move an Amendment here which I had put down under a misunderstanding, and which would have had the effect of negativing what we had done upstairs. In that I am sure I shall have the sympathy of my right hon. Friend. There is no doubt, however, that, in the first place, it is in the public interest to bring these amalgamation schemes into effect as soon as possible. On the other hand, the House as a whole certainly wishes to be fair to the railways and to give them a reasonable time in which to see what their position is. The view that has prevailed throughout has been that we should be fair to the railways and do the best we can for the public consistently with that. In fixing the extra year in Committee, I agree that the testing period, as it is called, was mentioned, but also the whole scheme of preliminary amalgamation and variation was in our minds. I suggest to the House that we might accept the suggestion thrown out by my right hon. Friend and, to some extent at any rate, by the hon. Baronet the Member for Ayr Burghs, that we should adopt the not unusual system of splitting the difference. It is an advantage to get this over as soon as possible. The hon. Baronet the Member for Ayr Burghs made a slip when he was speaking of the full financial year ending at the end of March. The statutory railway year is not the ordinary financial year, but ends in December.

The year ends in December and not in March. If we were to fix January, 1923, for the submission of amalgamation schemes instead of June, 1923, it is true that you would have difficulty in getting a complete calendar year from the 1st January to the 31st December; but I think it is not unreasonable in circumstances like this, when the interests of the public are largely concerned, and when it is believed that economies can be made, to say to the railway companies, "You can take special steps to take out the last three months of this year and the first nine months of the next calendar year, and call that a test year." I do not think that that is unreasonable. The last three months of this year can be approximated to the last three months of next year, having regard to the volume of trade, with .considerable accuracy. Therefore I suggest that we adopt this proposal, and if my hon. and gallant Friend would amend his Amendment, or withdraw it and allow me to move another, we might make it the 1st January, 1923, instead of the 1st June, 1923. That gives six months, and I think it meets the situation reasonably fairly.

I want to correct one statement that has been made, so that there may be no misapprehension at a later stage. Whilst the party with which I am associated favours nationalisation of the railways, we are not supporting this Bill merely as a means to that end. We are quite clear and honest in our views on railway nationalisation. We believe that it would be determined in the ballot box. But we are not going to support one year, or one day, merely with that ulterior motive. We support the Amendment that has been moved for the good and sufficient reason that, now that amalgamation is determined upon, and the groups are determined upon, and this House has said what the grouping will be, there is no earthly use in postponing the advantages which this House says will come from it. That, in short, is our case. I understand the difficulties of the Scottish companies. The only difficulty in which I am is that I have never seen any agreement amongst Scotsmen themselves as to what the Scottish position is. I have every sympathy for the Scottish case, but if you had had to hear as much about the Scottish case as I have you would be as confused over it as I am myself. We want to do justice to the Scottish railways, but I would ask the House to appreciate, having regard to all the circumstances, that, amalgamation having been determined upon, the sooner we get it the better for all concerned, and, if the suggested compromise meets the situation, I have no objection to it.

I should like to say a very few words in order to correct the statement of the right hon. Gentleman the Member for Peebles, that the Committee was practically unanimous.

The right hon. Gentleman said that it was a settled matter after much consideration. The Committee, however, was very much divided, and if the Proposer and Seconder of this Amendment had spoken in Committee as they have spoken to-day, instead of speaking in the opposite sense, the date 1923 would never have been in the Bill at all. I do not think it was in any way a case of the Committee having decided after great consideration. They were very much troubled and divided on this point. In the interests of the public I have always voted for the shorter period, because, if amalgamation is to do any good at all, the sooner it takes place the sooner will the public benefit. Therefore, if we have it at all, the sooner it is put into operation the better for the public, irrespectively of the railway companies.

In view of what the Minister has said, although I should prefer the earlier date, I quite accept what I think is the sense of the House, and, if it met with the consent of the House, I would ask leave to withdraw my Amendment.

We cannot go back unless the Amendment be withdrawn. If the Amendment be withdrawn we can insert the words "first day of January."

Amendment, by leave, withdrawn.

I beg to move, in Subsection (1), to leave out the words, "thirtieth day of June," and to insert instead thereof the words, "first day of January."

I suppose it is really rather hopeless now to oppose this Amendment. The right hon. Member for Derby (Mr. Thomas) and the hon. Baronet the Member for Lichfield (Sir C. Warner) say the sooner the amalgamations are brought into operation the better. I notice that the right hon. Gentleman earlier in the afternoon, when the superannuation schemes were under discussion, was very careful to submit a good case for the men in whom he is interested. He did not want any injustice done. Now, quite irrespective of whether any injustice is being done to Scotland, he says, bring the amalgamations into operation. The hon. and gallant Member for Durham (Major Hills) has changed his mind.

I am not prepared to accept that statement. When this point was under discussion in Committee and the hon. and gallant Gentleman voted for an extension of the period in order to obtain a testing period, he knew in fact that these amalgamations were being carried out.

I must contradict that. I never supported a testing period. I voted for the later date, because I wanted a voluntary period, and now that the voluntary period has been knocked out I want the date accelerated accordingly.

I unreservedly accept what the hon. and gallant Gentleman has said, but in my view the period under which the schemes were to be varied under the Sub-section which has now been omitted in no way depends upon this period for which we ask as a testing period. The Minister now proposes to insert January, 1923, instead of June, and he suggests that that will be a very fair period in which the economies can be proved and the terms of the amalgamation may be put forward. He might just as well have put in June, 1922. It is perfectly worthless. It does not give to the companies who are interested in this testing period anything like a normal year. The end of the statutory year may be December, but in order to get the full year we require at least up to March or April. The accounts cannot be completed for the year, the returns from the Clearing House are not in and the right hon. Gentleman, whose support we were entitled to expect, has given the whole position away.

I associate myself with all that has fallen from the hon. and gallant Gentleman opposite. It is always ungracious to look a gift horse in the mouth, and we are very grateful to the Minister of Transport for the moderate concession which he has made, but in the speech in which he made it he really gave away the whole case. He conceded everything which is being urged by those who desire the later date. The later date is desired simply on the ground that when you come to the details of this amalgamation you have not really got any basis on which amalgamation can equitably be made. What is the position to-day? The railways, when they are given back on 15th August, will have been for seven years under a system of Government control. Does anyone suggest that the experience of that abnormal period of seven years provides a reasonable basis for amalgamation? I do not think in any quarter of the House it is suggested that you can amalgamate on the basis of the last seven years. Then what is the basis that you are going to adopt? You are going under this Bill, as it now proposed to be amended, to give a period of 16 months. I put it to any business man in the House, if he was going to amalgamate his own business, would he be prepared to take an exceptional period such as this period must be after the conclusion of the period of control as a fair basis for an equitable amalgamation which was to endure for all time? That is not a businesslike proposition to put to the House of Commons, and therefore, although I cannot resist the Amendment under the circumstances which have changed my hon. and gallant Friend's (Major Hills) mind, I desire to associate myself fully with the protest of the hon. and gallant Gentleman (Lieut.-Colonel Murray).

Amendment agreed to.

Further Amendment made: In Subsection (1), after the word "Minister" ["submit to the Minister"], insert the words "of Transport (hereinafter referred to as the Minister)." —[ Mr. Neal. ]

I beg to move, in Subsection (4), to leave out the words " after the thirtieth June, nineteen hundred and twenty-two," and to insert instead thereof the words "at any time after the passing of this Act."

The desire was expressed in Committee that the companies might have the option of forming preliminary amalgamations by agreement, and it is desired now that they should have the opportunity of submitting them to the amalgamation tribunal at any time after the passing of the Act. I do not think this in any way interferes with the decision which has just been arrived at.

Amendment agreed to.

I beg to move to leave out Sub-section (5).

This Sub-section was inserted in Committee by a Vote of 22 to 21, and a little later, when we came to Clause 4, where a precisely similar question arose, the Committee changed its mind and altered its previous decision, and by 29 to 26 accepted the Minister's view that this particular procedure was unnecessary. This is an important Amendment, which raises a question of public interest. Under this Clause there is set up machinery to be operated by the amalgamation tribunal. The amalgamation tribunal is to consist of three Commissioners, Sir Henry Babington Smith as chairman, Sir William Plender, and Mr. Talbot, K.C. This Clause provides for the submission to that tribunal of schemes which may have been agreed by the constituent companies, and in case schemes have been so agreed the tribunal has very limited functions with reference to them. But in case there has not been agreement there is imposed upon the tribunal the duty of producing this scheme for the amalgamation of these companies, that is to say, for the settlement of the terms, as between the individual companies, upon which they shall be amalgamated. In the course of their duties they are charged to hear the parties and other persons upon these schemes. The tribunal is in essence a judicial body. It will have before it expert evidence and it will have the advantage of having heard the case of the companies and the persons who are immediately concerned, and also of considering the public interest to see how far the arrangement between the companies and the scheme which is propounded by the Commissioners may in fact be consonant with the public interest. It is a tribunal whose personnel will command universal respect. It will have all the advantages which a court can have from the assistance of counsel and witnesses, and it will then arrive at a decision which we respectfully submit will be in essence a judicial decision. Sub-section (5) provides that when a scheme has received the sanction of the tribunal it is to be brought to the House and to be approved by Resolution of both Houses of Parliament. I am second to no man in my admiration for Parliament, but there are some functions which are best dealt with by being delegated by Parliament to appropriate bodies for consideration. This is one of those subjects. The schemes will be financial in character. The tribunal will have to deal in detail with a great mass of figures, and the arrangements made for issuing new statutory certificates to shareholders in constituent and absorbed companies. They will deal with many other technical matters for the working of the group. It is one of those highly technical questions which will best be solved by reference to such a tribunal. To bring it back to Parliament after that, and then for Parliament to set up another tribunal in the nature of a Select Committee to go over the very ground which has been gone over by a tribunal selected for its peculiar fitness, would be to ask Parliament to do that which is impossible. In addition to that you would at once run some risk of political influences being brought to bear by persons who thought that their particular view had not received due weight. That is not a desirable state of things to arise. For these reasons we ask the House to undo what was done by the narrowest possible majority in the Committee, and to say that Sub-section (5) should not stand part of the Clause.

I hope the House will not agree to the proposal of the Government. The Parliamentary Secretary invited the House to accept the Amendment on the ground, first of all, that there was a very small majority of one as compared with the subsequent majority on what he thought was a case practically on all fours. With regard to the question of majority and minority, everyone knows that what happens in Committee upstairs is what happens on the Floor of the House. You cannot tell from one moment to another how many Members may be in the Committee because, far more than is the case on the Floor of the House, the numbers in Committees are subject to fluctuations. There are calls upon Members, and they have to go downstairs. You cannot tell how many Members may be unavoidably called from the Committee room in that way, and not be able to get back to a Division. In the House itself there is much more time, and we are on the Floor of the House, and the thing operates in quite a different way. In any case it does not lie in the mouth of the Minister to deprecate a decision come to, I presume, after sufficient debate in Committee. Let us take the other point he makes on Clause 4. The two cases are very different in importance. The case with which we are now dealing is a case where the constituent companies themselves submit to the Ministry an amalgamation scheme, and when that amalgamation scheme has been submitted it goes to the tribunal, to which my hon. Friend has made quite a fair reference. After that fundamental step, which has been taken by the constituent companies, the Committee decided that the final approval should be given by Parliament itself. That was a very sensible decision.

My hon. Friend makes a point about the constitution of the tribunal. It is admirably constituted, but all the factors of human life are brought into play whereby the personnel of the tribunal may be changed, and the argument which my hon. Friend now adduces as to the peculiar fitness of these gentlemen may all go by the board on account of the selections that may be made to fill vacancies on the tribunal. Whatever may be said about the tribunal and its special fitness, I submit very strongly that if the House allows this only remaining power which it has to check off, it is not more than that, a decision given by the tribunal on this most important fundamental step, it would be depriving itself not only of a function but a duty which it owes to the public. There has been quite sufficient going on during the last two and a half years to strip this House of its functions, and I suggest to the House that if they agree to the desire of the Minister they will make a mistake. On the grounds that he has submitted I have furnished an adequate answer. First of all, it was a decision of the Committee, and that ought not to be altered, except on grave and clear reasons. In the second place, on the merits of the proposal which has been made, my hon. Friend's arguments are not well founded, and should not have weight with the House. I hope, in any event, whatever the discussion may be, that this matter will be taken to a Division, and I shall most certainly support the authority of the final tribunal of this House being maintained as it now is in the Bill.

The right hon. Gentleman the Member for Peebles (Sir D. Maclean) always stands up for the powers and liberties of this House, and in general I am inclined, indeed anxious, to support him, but on this occasion he is grasping at the form and not securing very much substance. The Private Bill procedure of this House is a very valuable procedure for having inquiries into appropriate subjects; but on this occasion the House is intended, if the Sub-section remains in the Bill, to consider and to approve or disapprove, merely by resolution, of a scheme which it will be impossible for the House to alter. That can only lead to one result, and our procedure becomes a sham. The Sub-section, as it stands, would not permit of any Amendment being moved. The scheme submitted to the House would have to be accepted or rejected. With all desire to preserve the liberties and powers of the House, I cannot believe that this would give the House any real power or influence in altering schemes. It would only introduce another piece of business to clog the wheels of an already overstrained machine. If there is anything that this House can usefully perform, any proper check that it can place upon the decisions of persons whose decisions would affect the public interest, I would let the House do it, but this Sub-section will only give to people who desire to be lively obstructive an opportunity for overloading this House, without giving those private Members who are presumed to settle these questions any real influence in the matter. I suppose that the Minister of Transport would come down on such an occasion with his proposal, the Whips would be put on, no Amendments could be received, and there would be a barren discussion not attended by any Members except those interested. If the Hull and Barnsley Railway was concerned, we should have, no doubt, the four hon. Members for Hull present, but does anybody really suppose that the House would reconsider or be able to entertain in a few hours a scheme full of details and figures? On these broad grounds I differ from the right hon. Gentleman, and I think the words would be better left out of the Bill.

The Labour Members are naturally very anxious that the decision reached in Committee, after considerable discussion, should not be reversed, because it was on this point that we achieved the first memorable defeat of the Government in Standing Committee B. With great respect, the argument used by the hon. and learned Member for Central Bristol (Mr. Inskip) is no reply to our case. He suggests that we are merely going to do something which will be an additional clog to the wheels of the Parliamentary machine. The remedy for that, obviously, is some form of devolution or decentralisation. It is no remedy to take away from Parliament a power which in these matters of railways it has exercised, or had an opportunity of exercising, and to take that away and to entrust it wholly and practically without appeal to the Amalgamation Tribunal. In Committee we raised no question as to the ability of the members of the tribunal, and I would not at this stage press that question. That is not the point. The point is whether the House is going to wipe out, by the deletion of these words, the procedure which has been followed for many years, and whether it is going to abrogate what seems to us to be practically the whole of that Parliamentary control over the railways of this country, or, at any rate, over a large part of their operations, which has so far existed.

8.0 P.M.

As I understand the procedure up to the present time, it is that when any change of substance has been proposed in the railway world they had to proceed by Bill, and go before a Select Committee, where the whole circumstances were argued at great length and in great detail, and then the Bill came to the House, and the House, as representing the people of the country, had an opportunity of passing judgment on the Measure. Under the scheme as now proposed by the Government, these problems of amalgamation go to the Amalgamation Tribunal, and, except on certain points which do not immediately concern us here, there is no appeal, because the decision which they reach is to be final and binding. That is an intolerable proposition to make to the House. Apart altogether from any legal considerations, which I do not profess to understand, there is a very great and very cogent economic argument. The total capital of the railway undertakings in this country is about £1,300,000,000. Under this Bill, whatever differences of opinion may exist, we take the view that you are going to establish four great amalgamations in Great Britain which will be of the nature of railway trusts. That is a not unreasonable and not unfair description to apply to them. The Minister may reply that under the other Clauses of the Bill there is adequate safeguard of the public interest, but I submit that when you are setting up a tribunal that is going to determine four great railway trusts in this country it is essential that you should have some opportunity for a review by Parliament. If we agree to what the Minister proposes now, that review for all practical purposes vanishes, and the people of this country lose the protection which in this most important matter they should enjoy. For these reasons we on this side will strenuously resist the effort of the Government to delete what was carried in Committee, and we believe that in this opposition we shall have the support of every Member who believes in the Parliamentary method, because the fundamental of Parliament is at stake in this matter. It is wrong to suggest that you would get vexatious or ill-informed criticism or niggling opposition on the floor of the House of Commons. The probability is that you could only get real conflict here if there was something of substance at stake. My submission is that if the proposal of the Government is agreed to, all opportunity for discussing any matter of substance disappears. For these reasons I appeal to hon. Mem- bers in all quarters of the House to support us in the opposition which we are now offering.

I am sorry to disagree with my hon. Friend, but I wish to put a severely practical view. This Subsection deals only with the Clause at the end of which it is placed. That Clause is operative only for 16 months from now. It applies to schemes brought into operation on the 1st January, 1923. We set up a body of extremely able men, according to all the reports which we had upstairs, to deal with extremely technical topics, men who are far better qualified to deal with them than this House Moreover, we set up what is in all respects a judicial body. The right hon. Member for Peebles (Sir D. Maclean) said that while he might have every confidence in the members of that body mentioned in the Bill, those Members might disappear, and we might have others not so well qualified. That is a far-fetched argument. Sixteen months is not a long time, to look forward to. In the unlikely event of any one of these three gentlemen dying within the next 16 months, the vacancy will be filled up by the Government. To all intents and purposes this body seems to me to be analogous to a court of justice. This House is well qualified to deal with matters of general principle, and it is the proper authority to do so, but masters of general principle would not enter into the question here, which will simply be the technical details that can only be understood by a highly qualified and technical authority. That authority is the one set up under the Bill. It would be far better for it to deal with these matters than for this House to do so. It will act only for 16 months, during half of which time the House will not be sitting.

The right hon. Gentleman who has just sat down has, I am sure unintentionally, rather misrepresented the case. He has put before the House the case in which a Court of Justice has got to decide under the law some questions between parties who come before the Court in order to get the question decided. But the questions to be submitted to this tribunal are far greater than that. They are set forth in Clause 3, Sub-section (1). £1,300,000,000 has been invested under Acts of Parliament in railways. Parliament is not to be appealed to when its laws are being upset by a tribunal of three, who, the right hon. Gentleman says we were told in Committee, are a very good body who are likely to be a fair and just tribunal. On the faith of a statement to that effect, made upstairs, we are to put into the hands of these three people power to override all the provisions on the faith of which people invested their money. The duties and responsibilities of the railway companies whether statutory or otherwise are to be put into the hands of these three gentlemen from whose decision, if this is left out, there is no appeal except on a point of law.

I am not surprised that the right hon. Gentleman does not understand the Bill. I am not sure that anyone in this House does. I am sure that there are very few people, except possibly myself, who have the slightest idea of what the effect is going to be. If there is an agreed scheme these Commissioners have the right to say, "We do not think it is the right scheme. It is not within the provisions of this Bill. We are going to alter it." But if it is not an agreed scheme, the Commissioners can do what they like. In fact, it amounts to this Whatever scheme you may agree to can be altered by these three Commissioners. It is going to be a Star Chamber. It will have the power to say what is going to happen to people who have invested their money on the faith of Parliamentary undertakings. I do not know whether any hon. Members happen to hold any stock in railways. My hon. and learned Friend the Member for York (Sir J. Butcher) may have £100 debentures in the London and North Western Railway Company. There is nothing in this Clause to prevent these three gentlemen saying, "Take your bill and write quickly £50." They can do anything they like with regard to the share and loan capital.

My hon. and learned Friend the Member for Central Bristol (Mr Inskip), for whom I have a great respect, says that Parliament is not a body to review schemes of this sort. Parliament is the only court to which the inhabitants of this realm can appeal for justice—if justice is not meted out to them by this particular Star Chamber. Does my hon. and learned Friend think that Parliament has so deteriorated within the last two or three years that it is not a proper body to consider whether or not schemes are just and fair? To set up a court consisting of three gentlemen, I do not care how eminent they are, with no appeal to anyone, except on a point of law, to deal with this immense amount of property, is a. retrograde steps, and is going back to the days of Charles I and the kings before him, going back to the days of the Star Chamber. Charles I is represented by the Parliamentary Secretary to the Ministry of Transport. He is going to appoint certain Commissioners to carry out his behests, and Parliament is to have nothing to say to it. This Sub-section was carried against the Government in Committee, if my memory serves me aright, by a majority of 22 to 21. I was anxious that we should send this Bill to a hybrid committee, or if not that, then a Committee of the whole House. We were told that the proper course was to go upstairs, that a long and complicated Bill would get better consideration upstairs, that hon. Members would be present to hear the arguments, and that the vote would be in accordance with the arguments. Hon. Members upstairs have heard the arguments, and the arguments against the Government have been so overwhelming that hon. Members were obliged to vote against the Government, and they put in this Sub-section. Now the virtues of the Committee upstairs disappear. No longer are we told that the Committee upstairs hear the arguments and are the proper people to decide, we are told that the House of Commons, under the Guillotine, and between eight and half-past eight o'clock, with very few people in the House, is to override the decision of the Committee.

I do not say that no decision arrived at upstairs can be overruled down here, but I do say that a decision arrived at upstairs by a Committee on a complicated Bill like this, which it is very difficult for hon. Members who have not been on the Committee upstairs thoroughly to understand, should be treated with great consideration, and should not be lightly altered. I shall certainly go to a Division on this question. I look upon it as one of the most important questions on the Bill. The Sub-section preserves to people who, after all, have done no harm to the State, but have invested their money in property under Statutory rights without the least idea that any House of Com- mons could be found to interfere with those rights, especially in these democratic days, the right of appeal to this House. We have gone back to the days of the Czar of Russia. We have an absolute monarchy over here, or I am not sure that we have. If we had it might be said it can do what it likes. It would be like a trade union which can do no wrong. But we have not done that. People who have been unfortunate enough to invest money in English railways would never suppose that the Acts of Parliament, on the faith of which they invested that money, would be left in the power of a ministerially constituted Star Chamber to alter as they like, and that that Chamber could refuse the right, in the last resort, of appeal to the House of Commons.

It is so great a pleasure to listen to the words of wisdom which fall too rarely from the lips of the right hon. Baronet that I feel some diffidence in attempting to answer him. My diffidence is increased by the fact that on this particular topic he speaks, as indeed he has told the House, from the exalted and solitary eminence of conscious knowledge and unrivalled experience. I think he said that he was the only Member of the House present who was able to construe the Bill. With all proper reserve, I venture very humbly to submit that the right hon. Baronet has taken, accidentally, no doubt, too gloomy a view of the provisions of Clause 8. The phrase he used was, "Star Chamber," and, according to him, under the provisions of this Bill persons who have invested, I do not know how many millions of money, on the strength of Acts of Parliament are to see their interests remitted to what he called a "Ministerially constituted" tribunal without possibility or hope of appeal. It is very difficult in that description to recognise what is done by Clause 8 of the Bill. In that Clause not only is the most careful provision made for the constitution and procedure of the amalgamation tribunal, but there is an express provision for appeal in proper cases to the Courts of Law.

If that be so, the complaint of the right hon. Baronet is that there is no appeal on questions of fact. If the contention be that there ought to be an appeal on questions of fact, I respectfully disagree. Clause 8, Subsection (7), is in these terms:

"The amalgamation tribunal may, and if so required by the Court of Appeal shall, state in the form of a special case for determination by the Court of Appeal, any question of law which may arise before them, and the decision of the Court of Appeal shall be final unless that court give leave to appeal to the House of Lords, which leave may be given on such terms as to costs or otherwise as the Court of Appeal may determine."

How any Member of this House, with that Clause before him, can suggest a comparison between a tribunal of that kind and the Star Chamber is a matter which entirely passes my comprehension.

The right Gentleman has totally omitted to deal with Clause 3, which gives power to the gentlemen in question—I call them the Star Chamber again—to

"make such provisions as appear necessary or expedient with regard to the share and loan capital of the amalagmated company and the vesting of the property, rights, powers, duties, and liabilities, whether statutory or otherwise, of the constituent companies."

It is to that I object.

I hope the right hon. Baronet will bear with me. Unfortunately I can deal with only one Clause at a time. Clause 3 happens to be the next Clause to which I was about to refer. In the speech which he made a few moments ago the right hon. Baronet permitted himself to say that under the provisions of the Bill this Amalgamation Tribunal will have the power to tear up Acts of Parliament. That, I cannot help thinking, is a reference to Clause 3, Subsection (1, c ). It provides that an amalgamation scheme shall do certain things, and may do certain other things. It shall incorporate Part V of the Railways Clauses Act, 1863. That is what it must do. What it may do is to Amalgamation Tribunal will have the power of tearing up Acts of Parliament. The amalgamation scheme is to

I should like to know of any tribunal less fitted to review an award of the kind which is contemplated here than the House of Commons. One knows the attitude which the judges of the High Court always observe towards the award of an arbitrator. True, if there is some flaw upon the face of it, in point of law, such an award can be dealt with. But where an arbitrator, having heard the evidence, has come to a conclusion of fact, His Majesty's Judges show the greatest aversion to any attempt to reverse or modify that conclusion of fact. Yet they are persons who have before them every bit of the evidence, and they are persons who spend their lives in unravelling problems of that kind and in that way. Is it to be thought that Members of this House, if a scheme of this kind had been decided upon by the amalgamation tribunal, would have the patience, would have the time, would even have the opportunity, to put themselves in a position, in point of information, usefully to review the findings of the tribunal? We know, of course, that we should not.

But it is said that these schemes should not be taken away from the House. Is there anything derogatory underlying that action? The House has decided the policy and the House will have decided the lines upon which this policy is 10 proceed. Is there anything derogatory, or is there anything really of a self-denying character, in handing over the work of elaborating the details and of coming to conclusions upon that part of the matter to a skilled tribunal? If, indeed, these schemes were to be brought to this House for review, I cannot imagine anything more perfunctory than that review would probably prove to be unless, indeed, for some reason a real attempt were made in some quarter of the House to deal more fully with particular aspects of a controversial question. I should look forward with dismay to the kind of influences which might be sought to be applied to Members of this House to induce them to exercise what would then become in name—I do not know whether it would be in fact—the judicial functions of a superior Court of Appeal.

I come now to the last argument employed by my right hon. Friend the Member for Peebles and by the hon. Member for Central Edinburgh (Mr. W. Graham). It is said by them, "You have had the decision of a Committee upstairs and it is a very strong thing to go back upon the decision of that Committee." Well, that must depend upon the circumstances of the case. And could there be a case in which that argument has less force than the force which it has or should have in the present discussion? What are the facts? The Committee upstairs decided upon this particular point by a majority of one, the vote being 22 to 21. A little later in the course of this discussion, essentially the same question was re-presented upon another part of the Bill, and the difficulties arising or likely to arise from the previous decision were pointed out. What did the Committee do then? The Committee, by a majority of 29 votes to 16, took the opposite course upon the second occasion. Therefore when it is said that we have the decision of the Committee upstairs, and that we ought not to reverse it, I suggest in all seriousness that this is not a case in which we ought to hesitate to do so. May I add one further observation? In all quarters of the House this afternoon, when another part of this Bill was being discussed, it was said and said with force: "Now that this policy has been decided upon, now that it only remains to give it effect, let us have it carried out with as little delay as may be." I wonder whether the right hon. Baronet has seriously considered what delay would be interposed if this Amendment were successfully resisted as he seeks to resist it

As a layman, one follows with very great trepidation the right hon. and learned Gentleman pleading on behalf of the reversal of the action of the Committee. I am fortified in doing so by the fact that in the Bill, as originally introduced to the House, there was a provision that the grouping scheme should be submitted to the approval of this House, and should not be effected unless a Resolution was passed by both Houses of Parliament. Therefore, apparently the Government, in the earlier days, had some faith in the capacity of this House to express an opinion upon grouping as provided for under Clause 1 of this Bill. But, having, by an Amendment, taken away from the House that safeguard which was in the original Bill, there is all the more reason why we should now plead for the keeping in the Bill of this safeguard which was inserted upstairs. The right hon. Gentleman the Member for Gorbals Division of Glasgow (Mr. G. Barnes) pointed out it would not matter very much, because it was only a question of 16 months, but surely if there is any reason for the provision at all, it lies in the fact that it will settle within 16 months the foundation upon which these amalgamations are to take place. After the 16 months, it will hardly be necessary, because either the good or the mischief will have been done, and the amalgamation will have taken place, and therefore the sanction of the House would not be required for further groupings. In this part of the Bill you are fundamentally altering the procedure upon Railway Bills in this House. In the past Private Bill legislation, has been capable of dealing with all these matters of railway law, and this House has been able to settle on fair terms, without the danger of lobbying, to which the right hon. and learned Gentleman referred. The experience of the past is, that this House can rise above such influences, and I submit that the House has not fallen from that high estate, but is equally able to-day to deal with these questions without that undue influence which the learned Attorney-General fears may arise if this were left to the House and taken out of the hands of the tribunal. Reference has been made to the tribunal, and no doubt it is a most excellent and highly qualified tribunal, but I would like to make this remark in passing, that excellent and experienced as these gentlemen are, they are men—and this may be a qualification—who are specially versed and specially experienced in railway law and practice, alone. Although it has been suggested that this is purely a railway matter, questions affecting the public and the trader do arise. I quite agree the total sum has been fixed, but in the apportionment as between one railway company and another the position of the trader and the position of the public may be seriously influenced and possibly jeopardised. The Minister in Committee to a certain extent admitted that point, and said so far as the question of under-maintenance was concerned it was possible in the dividing up of these claims, as between one section of a group and another, that a trader's interest might be affected, and where there had been serious under-maintenance, unless special regard was had to the position of the trader in that group, he might be put into a worse position.

Therefore I submit that it is not merely a question of protecting the shareholders, but the question of the larger public interest does arise out of the question of amalgamation, and unless this question of amalgamation and the proportion which is allotted between one company and another is dealt with on fair and just lines, the traders of one particular group may be put in a much worse position than those of another and have to pay higher rates in the future. In the past the trader has had the right to come to this House and, by Private Bill legislation, have these questions settled, but this Bill revolutionises that system. It takes the matter entirely out of the hands of this House, and in the interests of the public as a whole there ought to be that safety valve which is given by the knowledge that these things have to meet the full light of day, the consciousness that the trader and the public may appeal to this House for a final settlement. I am saying that without suggesting that the three gentlemen who are on this tribunal are not in every way qualified for the particular office. I say you will give larger confidence to the public and maintain the constitutional practice of giving this House the final decision, not on a question of detail or of weighing up technicalities that may come before the tribunal, and which they alone are able to decide, but, on the other hand, large questions of public interest may arise, and the very fact that the trader or the public have the right to come to this House will give them confidence and possibly will assist the tribunal itself in coming to a decision. Inasmuch as the Government put in this protection in Clause 1, there is no logical ground for refusing it in Clause 2.

The hon. Member has referred twice to the Government having put this in Clause 1, but he is surely overlooking the fact that it was the variation of the scheme that the Government suggested should come within the purview of this House. It was thought appropriate that any changes should be approved by Parliament, a totally different question.

Inasmuch as Parliament was capable of having a final settlement on the variation of the grouping, Parliament is surely equally qualified to have the final word in the terms of amalgamation as between one railway company and another. I urge, notwithstanding what has fallen from the Parliamentary Secretary, that if you are to maintain the dignity of this House, and if the public at large are to have confidence that they have the right to appeal here, and that the whole of government is not to be taken out of the hands of the Commons and left in the hands of a bureaucracy, we should reject this Amendment. This is not the first occasion on which this point has arisen. We have had Bill after Bill where a question which has been previously settled by this House is now settled by administrative order. We want to retain, so far as we can, the respect of the public, and we cannot do that if we first take away one right and then another which in the past has belonged to the House of Commons. I think the Government should take a free vote of the House on this question and see what the final decision would be.

I agree with certain things that have been stated by the hon. Member for Middlesbrough (Mr. T. Thomson). I quite agree, in the first place, that anybody who seeks to upset a decision of a Committee upstairs ought to show a strong case, but it must not be forgotten that this House can always review, and must review, its own Committees' decisions. Secondly, I agree that, generally speaking, I stand for the liberty of Parliament and for free access to Parliament, but where I really differ from the last speaker is here. He said that we tended too much to rule by bureaucracy and by administrative decree, instead of by the free decision of Parliament, but I think he had a little misunderstood the exact bearing of this Clause. This Clause sets up a judicial body which can in no sense be called a bureaucracy, and which certainly is not to be the blind instrument of a Minister's decree, and Parliament itself in its wisdom is setting it up. I want to take two objections against this Sub-section, the one practical and on the lower plane, and the other on a higher plane. The practical one is this. All these schemes have got to be submitted in the next 16 months after the end of August. We know now that Parliament is to adjourn on or before the 26th August, for, I suppose, six months, and therefore for six months of the 16 no House will be sitting. Of the remaining 10 months, it is a very liberal estimate to say that we shall sit for five, and, therefore, for 11 months out of the 16 there will be no Parliament sitting, and all that time amalgamation schemes will be held up. That is a very practical objection, because the Sub-section says that schemes are not to take effect until confirmed by Parliament. There are four different amalgamations, and therefore there would be four different resolutions, and I believe I am right in saying that each of those resolutions would be subject to amendment. It would have to go through a Committee stage.

Well, it would be subject to amendment on every line, and I may remind the House that the same thing occurred about 20 years ago on the Government's proposals for redistribution. Mr. Speaker Gully then ruled that resolutions could not be proposed en bloc, but must be proposed separately, and that they were subject to amendment. That ruling killed the redistribution proposals altogether. You have, therefore, got this, that you will have a long stage on these Resolutions, and that they can be considered line by line and word by word. They are important, I grant, but they are the financial union of groups which Parliament has settled already. All that the tribunal have got to say is as to the interchange of stock and the exact financial interests of the companies. That is important, but I cannot conceive a more inappropriate tribunal than Parliament to review the decisions of this body. I think we must trust the body which we set up. Now I come to my second point. Assuming that there was no Railways Bill at all—

That is a very optimistic and agreeable assumption to my right hon. Friend. Assuming, as I say, that there was no Railways Bill and that the companies in one group, say, the Eastern Group, came to Parliament and asked for power to group, they would come by the ordinary Private Bill procedure and would go through the procedure of a Second Reading, a Committee stage, further consideration here, and Third Reading in this House, and the same stages at the other end of the passage. Then Parliament is the appropriate tribunal for all the stages, but when you say, instead of that, that you will set up this tribunal, and when you have given this tribunal a purely judicial character, you have then got no right, I submit, to interfere and to check the decisions of that tribunal. This tribunal is a court of law as clearly as words can make it. Counsel can appear before it. Its decisions are appealable on points of law to the Court of Appeal, and, in certain cases, to the House of Lords. I agree with a good deal of what the last speaker has said. I accept a great many of his statements about the liberty of the subject, and I agree with a great deal of what my right hon. Friend said about free access to Parliament of every person aggrieved, but do you further liberty by encouraging appeals on inappropriate subjects? It would not encourage liberty if every litigant who lost his case could appeal to this House. We should be overwhelmed with work, and our courts of law would be hopelessly compromised.

I do wish to press this upon hon. Members opposite. First of all, I do not think it is our duty, and then you must consider the effect of this provision on the constitution and moral of the tribunal itself. Supposing I were sitting on that tribunal, which, say, will be a Court of Law, and there was an appeal to the House of Lords, and I knew at the same time there was an appeal to Parliament, I do not think I would sit. I think I should say: "I can understand if I am here as a Court of Law; I know where I am," or "I am here as a Committee of the House of Commons, and I know where I am." But when I have to fulfil both functions and, at the same time, an appeal against my decision has gone to the House of Lords as a legal body, and to Parliament as a political one, I think it would be giving me quite an impossible task. Finally, I plead for the real liberty of Parliament. We conserve that liberty best by knowing what Parliamentary business is. Parliament does not help matters on by interfering everywhere. I believe I shall even carry my right hon. Friend (Sir F. Banbury) with me on that. I believe we shall be doing a bad thing for the tribunal, and I am sure we shall be doing a bad thing for Parliament if we leave this Sub-section in the Bill. Therefore I shall vote for its deletion.

The hon. and gallant Member who has just sat down has been arguing for the reversal of the decision of the Committee upstairs. He is asking the House to preclude itself from a consideration of the amalgamation schemes when settled by the tribunal. If he will forgive my saying so, I think he is rather putting the whole position in a wrong perspective when he talks about everybody coming to this House on every kind of thing. What is really the issue before the House? Amalgamation schemes are to be prepared. How many? Four great amalgamation schemes, which affect property of something like £1,300,000,000 or £1,400,000,000. Under the Bill as it stands, the House will have the opportunity of considering those four schemes. It is not a question of subjecting the House to the intrusion of 400 schemes, but simply four, and the schemes are of such magnitude, and such importance, as probably are never likely to come before this House at any other period. I do suggest that it is an extremely important decision to take if this House, especially after the decision of the Committee upstairs, is going to pass a self-denying ordinance on this subject, and to say that this Act being passed, and these matters having gone into the hands of the tribunal, we do not want to hear anything more about it. Let them settle, and whatever they settle is to stand, and nobody interested in these vast schemes, no individual or body of individuals, however important, is to have the opportunity of coming before this House and enlisting the interest of this House in the settlement that has been made by the tribunal. I think that is a very grave step to invite the House to take, and I do think it ought to be supported by very important arguments.

When this matter was before the Committee I was in a good deal of doubt on the subject, and I must confess that the speech of the learned Attorney-General, lucid and convincing as his speeches always are, has failed altogether to remove my doubt. When the Amendment was proposed upstairs by the hon. Member for Central Edinburgh (Mr. W. Graham) it was resisted by the Minister of Transport. I have before me the Report of the Committee, and I find that the very argument upon which he based his main resistance to the Amendment was an argument which has disappeared to- day, and disappeared through the very action of the Minister of Transport himself. If we look at the Sixth Day's Proceedings we find that in dealing with the Amendment of the hon. Member the Minister of Transport said: character, having bound it in such a way so completely, there was not any necessity for that provision in Clause 1. That was the argument of the hon. Gentleman.

I contend that that very argument supports the retention of the provision of Clause 2, because, if one looks at Clause 3, one then finds that the instructions which have been given to this tribunal are not absolutely definite; a very great deal indeed is left to them. The Attorney-General, when speaking on this matter, divided it into two very clear divisions: questions of law—that are to go to the courts—and questions of fact, and this House is not the proper place to which to bring questions of fact. I agree with the right hon. and learned Gentleman on this latter point. I do not think it is within the province of this House to determine questions of fact settled by the tribunal. The question as to what is the relative values of the companies, the way in which the capital is apportioned, etc., I agree, are not questions which ought to come back to this House. They are questions entrusted to the tribunal, and in whatever way the tribunal decides that should be accepted. I submit, too, that in Clause 3, Sub-section (1, a ), there are a great many other matters than this to be settled by the tribunal. If hon. Members will look at the words they will see that what happens is this:

"An amalgamation scheme under this Act

( a ) shall provide for the incorporation …and make such provisions as appear"—

The word "appear" has nothing to do with law—

"necessary or expedient."

"Expedient" again is not a question of fact; it is a question of opinion. We are leaving it to the tribunal to determine questions of law, and not only questions of fact which, rightly and properly, are settled by them, but questions which are based upon expediency and upon opinion. If one goes further still into this Clause one finds these words reappear. In paragraph ( a ) the tribunal is given power to make such incidental supplementary provisions as appear necessary or expedient to give full effect to the provisions of the scheme for the purposes of the Bill. So that both at the beginning and the end of this Clause the tribunal is given very wide powers, which are not definite or absolutely set out by this House. That being so, the House might very well retain in its purview the final approval of whatever arrangement is come to by the tribunal. I should like to draw the attention of the Lord Advocate to paragraph ( c ) of the Clause where it says that an amalgamation scheme under the Act shall incorporate Part V of the Companies Clauses Consolidation Act, 1845, with or without modification. The Attorney-General dealt with this matter. Perhaps, however, the Lord Advocate will go into it a little more closely, because I have looked at the Act—being curious enough to turn it up to see what it said—and I find that it is laid down in this Act of 1845 that the Clauses and the provisions of this Act may be incorporated in any other Act if they are expressly varied or excepted. In other words, if these Clauses are incorporated into any other Act they must be incorporated as they stand except they are expressly varied.

9.0 P.M.

That suggests to me, not being a lawyer, that if the provisions of this Bill are incorporated in any other Act that comes before the House they are taken as they stand, or expressly varied by this House. In the Bill here power is given to this tribunal to adopt this Bill and its provisions and to modify them as it thinks fit. I do not know what was referred to by the right hon. Baronet the Member for the City (Sir F. Banbury) as to the power of Acts of Parliament, but it does seem to me that very wide power is given. Taking all these matters into consideration, first of all, the fact that if this is retained we shall not have lots of schemes come before us, but only four great schemes; taking further into consideration the fact that the tribunal is not only going to settle matters of fact, but also to deal with matters of expediency and opinion; and, finally, considering how great are the interests concerned and how important it is that great interests—and I do not use the word "interest" merely in the sense of capital—it does seem important to me that this House should not definitely preclude the great interests coming before us in the last resource, if they are satisfied there is ground for it.

One feels some measure of satisfaction coming to one of those rare occasions when one finds oneself in agree- ment with the right hon. Baronet the Member for the City of London (Sir F. Banbury). Under normal conditions we should suspect ourselves, but upon this occasion in the right hon. Gentleman's desire to reserve the rights of Parliament we are whole-heartedly with him. Just in the same way as we pressed in Committee upstairs for an Amendment, none of the speeches which we have heard up till now have changed our view of the matter. It will be readily conceded that this Clause gives tremendous powers to a very small number of people, and in the .exercise of those powers the interests of a 'wider community are touched at every point. It appears to me that in this Clause conceivably circumstances might arise which, having regard to the tremendous responsibilities imposed upon it, might make the tribunal desire to be fortified in their decision by the opinion of this House. On the other hand, any action they may take or any decision they

may arrive at might cut across the public interest at some particular point. It might entrench upon some rights of the individual or of scores of people. In that event surely such a section of the community have a right to appeal to this House to be allowed to present their grievance, or any particular demand that they might make, having regard to the decision that the tribunal has arrived at. We are, I think, on quite solid ground and supporting a real democratic principle when endeavouring to maintain the final decision of this House as a Court of Appeal for anything that might be brought up for its consideration. That right ought to be preserved, we suggest, and this particular Sub-section, we think, ought to be retained. Nothing has yet been advanced which has converted us to a different opinion.

Question put, "That the words proposed to be left out stand part of the Bill."

The House divided: Ayes, 73; Noes, 200.

Division No. 294.]

AYES.

[9.5 p.m.

Balfour, George (Hampstead)

Hall, F. (York, W.R., Normanton)

Rawlinson, John Frederick Peel

Banbury, Rt. Hon. Sir Frederick G.

Hancock, John George

Rendall, Athelstan

Barker, G. (Monmouth, Abertillery)

Hartshorn, Vernon

Richardson, R. (Houghton-le-Spring)

Barnes, Major H (Newcastle, E.)

Hirst, G. H.

Robertson, John

Benn, Captain Wedgwood (Leith)

Hogge, James Myles

Rose, Frank H.

Bowerman, Rt. Hon. Charles W.

Holmes, J. Stanley

Royce, William Stapleton

Bramsdon, Sir Thomas

Hopkinson, A. (Lancaster, Mossley)

Short, Alfred (Wednesbury)

Bromfield, William

Home, Edgar (Surrey, Guildford)

Smithers, Sir Alfred W.

Brown, James (Ayr and Bute)

Irving, Dan

Spencer, George A.

Burn, Col. C. R. (Devon, Torquay)

Jackson, Lieut.-Colonel Hon. F. S.

Spoor, B. G.

Cairns, John

John, William (Rhondda, West)

Swan, J. E.

Cape, Thomas

Kenyon, Barnet

Thomas, Rt. Hon. James H. (Derby)

Clynes, Rt. Hon. John R.

Lawson, John James

Thomas, Brig.-Gen. Sir O. (Anglesey)

Davison, Sir W. H. (Kensington, S)

Lowther, Major C. (Cumberland, N)

Thomson, T. (Middlesbrough, West)

Edwards, C. (Monmouth, Bedwellty)

Lunn, William

Walsh, Stephen (Lancaster, Ince)

Edwards, G. (Norfolk, South)

Maclean, Rt. Hon. Sir D. (Midlothian)

Waterson, A. E-

Entwistle, Major C. F.

Marriott, John Arthur Ransome

Wignall, James

Finney, Samuel

Morgan, Major D. Watts

Williams, Aneurin (Durham, Consett)

Galbraith, Samuel

Murray, Dr. D. (Inverness & Ross)

Willoughby, Lieut.-Col. Hon. Claud

Gillis, William

Myers, Thomas

Wintringham, Thomas

Glanville, Harold James

Nail, Major Joseph

Young, Robert (Lancaster, Newton)

Graham, D. M. (Lanark, Hamilton)

Newbould, Alfred Ernest

Graham, W. (Edinburgh, Central)

O'Connor, Thomas P.

TELLERS FOR THE AYES.—

Griffiths, T. (Monmouth, Pontypool)

O'Grady, James

Mr. Tyson Wilson and Mr. W.

Grundy, T. W.

Parkinson, John Allen (Wigan)

Smith.

Guest, J. (York, W. R., Hemsworth)

Pennefather, De Fonblanque

Elveden, Viscount

King, Captain Henry Douglas

Robinson, S. (Brecon and Radnor)

Evans, Ernest

Lane-Fox, G. R.

Robinson, Sir T. (Lanes., Stretford)

Eyres-Monsell, Com. Bolton M.

Larmor, Sir Joseph

Rodger, A. K.

Fell, Sir Arthur

Lewis, Rt. Hon. J. H. (Univ., Wales)

Roundell, Colonel R. F.

Fisher, Rt. Hon. Herbert A. L.

Lindsay, William Arthur

Samuel, A. M. (Surrey, Farnham)

Flannery, Sir James Fortescue

Lloyd-Greame, Sir P.

Sanders, Colonel Sir Robert Arthur

Ford, Patrick Johnston

Looker-Lampson, Com. O. (H'tingd'n)

Scott, A. M. (Glasgow, Bridgeton)

Forestier-Walker, L.

Lorden, John William

Seager, Sir William

Forrest, Walter

Lyle, C. E. Leonard

Seddon, J. A.

Fraser, Major Sir Keith

Lyle-Samuel, Alexander

Shaw, William T. (Forfar)

Fremantle, Lieut.-Colonel Francis E.

M'Connell, Thomas. Edward

Shortt, Rt. Hon. E. (N'castle-on-T.)

Ganzoni, Sir John

Mackinder, Sir H. j. (Camlachie)

Smith, Sir Harold (Warrington)

Geddes, Rt. Hon. Sir E. (Camb'dge)

Macpherson, Rt. Hon. James I.

Sprot, Colonel Sir Alexander

George, Rt. Hon. David Lloyd

Macquisten, F. A.

Stanier, Captain Sir Beville

Gibbs, Colonel George Abraham

MacVeagh, Jeremiah

Stanley, Major Hon. G. (Preston)

Gilmour, Lieut.-Colonel Sir John

Mallalieu, Frederick William

Strauss, Edward Anthony

Goulding, Rt. Hon. Sir Edward A.

Malone, Major P. B. (Tottenham, S.)

Sturrock, J. Leng

Grayson, Lieut.-Colonel Sir Henry

Martin, A. E.

Sueter, Rear-Admiral Murray Fraser

Green, Albert (Derby)

Matthews, David

Sugden, W. H.

Green, Joseph F. (Leicester, W.)

Middlebrook, Sir William

Sutherland, Sir William

Greene, Lt.-Col. Sir W. (Hack'y, N.)

Mildmay, Colonel Rt. Hon. F. B.

Taylor, J.

Greenwood, Colonel Sir Hamar

Mitchell, Sir William Lane

Thomson, Sir W. Mitchell- (Maryhill)

Gritten, W. G. Howard

Mond, Rt. Hon. Sir Alfred Moritz

Thorpe, Captain John Henry

Hall, Captain Sir Douglas Bernard

Moreing, Captain Algernon H.

Townley, Maximilian G.

Hall, Lieut.-Col. Sir F. (Dulwich)

Morison, Rt. Hon. Thomas Brash

Tryon, Major George Clement

Hall, Rr-Adml Sir W.(Liv'p'I.W.D'by)

Morris, Richard

Waddington, R.

Hamilton, Major C. G. C.

Munro, Rt. Hon. Robert

Wallace, J.

Hannon, P.

Murray, Hon. A. C. (Aberdeen)

Walters, Rt. Hon. Sir John Tudor

Harmsworth, C. B. (Bedford, Luton)

Murray, Hon. Gideon (St. Rollox)

Walton, J. (York, W. R., Don Valley)

Henderson, Major V. L. (Tradeston)

Neal, Arthur

Ward, Col. J. (Stoke-upon-Trent)

Henry, Denis S. (Londonderry, S.)

Newman, Sir R. H. S. D. L. (Exeter)

Ward, Col. L. (Kingston-upon-Hull)

Herbert, Dennis (Hertford, Watford)

Oman, Sir Charles William C.

Ward, William Dudley (Southampton)

Hewart, Rt. Hon. Sir Gordon

O'Neill, Major Hon. Robert W. H

Warren, Sir Alfred H.

Higham, Charles Frederick

Parker, James

Weston, Colonel John Wakefield

Hills, Major John Waller

Parry, Lieut.-Colonel Thomas Henry

Whitla, Sir William

Hinds, John

Pearce, Sir William

Wild, Sir Ernest Edward

Hope, Sir H.(Stirling & Cl'ckm'nn.W.)

Pease, Rt. Hon. Herbert Pike

Williams, C. (Tavistock)

Hope, J. D. (Berwick & Haddington)

Percy, Lord Eustace (Hastings)

Williams, Col. Sir R. (Dorset, W.)

Hopkins, John W. W.

Perring, William George

Wills, Lt.-Col. Sir Gilbert Alan H.

Hume-Williams, Sir W. Ellis

Pollock, Sir Ernest Murray

Wilson, Rt. Hon. J. W. (Stourbridge)

Hurd, Percy A.

Pratt, John William

Wilson, Col. M. J. (Richmond)

Inskip, Thomas Walker H.

Prescott, Major W. H.

Wise, Frederick

Jameson, John Gordon

Pretyman, Rt. Hon. Ernest G.

Wood, Hon. Edward F. L. (Ripon)

Jephcott, A. R.

Purchase, H. G.

Wood, Sir J. (Stalybridge & Hyde)

Jodrell, Neville Paul

Randles, Sir John Scurrah

Worsfold, T. Cato

Johnson, Sir Stanley

Raper, A. Baldwin

Worthington-Evans, Rt. Hon. Sir L.

Johnstone, Joseph

Ratcliffe, Henry Butler

Young, E. H. (Norwich)

Jones, Sir Edgar R. (Merthyr Tydvil)

Rees, Capt. J. Tudor- (Barnstaple)

Younger, Sir George

Jones, G. W. H. (Stoke Newington)

Reid, D. D.

Jones, Henry Haydn (Merioneth)

Richardson, Alexander (Gravesend)

TELLERS FOR THE NOES.—

Jones, J. T. (Carmarthen, Lianelly)

Roberts, Rt. Hon. G. H. (Norwich)

Colonel Leslie Wilson and Mr.

Kellaway. Rt. Hon. Fredk. George

Roberts, Samuel (Hereford, Hereford)

McCurdy.

NOES.

Adair, Rear-Admiral Thomas B. S.

Broad, Thomas Tucker

Cowan, D. M. (Scottish Universities)

Agg-Gardner, Sir James Tynte

Brown, T. W. (Down, North)

Craig, Capt. C. C. (Antrim, South)

Amery, Leopold C. M. S.

Bruton, Sir James

Davies, Alfred Thomas (Lincoln)

Armstrong, Henry Bruce

Buckley, Lieut.-Colonel A.

Davies, Sir David Sanders (Denbigh)

Astbury, Lieut.-Com. Frederick

Bull, Rt. Hon. Sir William James

Davies, Sir Joseph (Chester, Crewe)

Baird, Sir John Lawrence

Butcher, Sir John George

Davies, Thomas (Cirencester)

Baldwin, Rt. Hon. Stanley

Campbell, J. D. G.

Davies, Sir William H. (Bristol, S.)

Barnes, Rt. Hon. G. (Glas., Gorbals)

Carr, W. Theodore

Dawes, James Arthur

Barnett, Major Richard W.

Casey, T. w.

Denniss, Edmund R. B. (Oldham)

Barnston, Major Harry

Chamberlain, Rt. Hn. J. A. (Birm. W.)

Doyle, N. Grattan

Bellairs, Commander Carlyon W.

Churchman, Sir Arthur

Edge, Captain William

Benn, Sir A. S. (Plymouth, Drake)

Cobb, Sir Cyril

Edwards, Allen C. (East Ham, S.)

Birchall, Major J. Dearman

Colvin, Brig.-General Richard Beale

Edwards, Major J. (Aberavon)

Blair, Sir Reginald

Conway, Sir W. Martin

Edwards, Hugh (Glam., Neath)

Breese, Major Charles E.

Coote, Colin Reith (Isle of Ely)

Elliot, Capt. Walter E (Lanark)

Briggs, Harold

Cope, Major William

Elliott, Lt.-Col. Sir G. (Islington, W.)

CLAUSE 3.—(Provisions to be contained in amalgamation schemes.)

(1) An amalgamation scheme under this Act—

( c ) shall incorporate Part V of the Rail-ways Clauses Act, 1863, subject to the provisions of this Act; and may incorporate with or without modification any of the provisons of the Companies Clauses Consolidation Act, 1845, and the Acts amending that Act; and

( d ) shall give effect to the provisions contained in the Second Schedule to this Act, with respect to the direction of the amalgamated company or in the case of a preliminary amalgamation scheme to such alternative provisions in that respect as may be agreed between the companies affected and embodied in the scheme; and

( e ) shall incorporate the provisions contained in the Third Schedule to this Act with respect to existing officers and servants; and

( f ) may make such incidental and supplemental provisions as appear necessary or expedient in order to give full effect to the provisions of the scheme and the purposes of this Act:

Provided that the scheme may provide for the postponement for a period not exceeding two years of the winding up of a constituent company with or without any change in the name of the company in order to enable such company to continue to exist for the purpose of receiving and holding any securities of the amalgamated company for the benefit of any class or classes of the holders of any loans, debenture stock, rent-charge, lien guaranteed preference ordinary, preferred ordinary, or deferred ordinary, or other stock or shares of the constituent company or of any company the interest or dividends of which is guaranteed by or securred on the revenues of the constituent company, according to their respective rights and interests in pursuance of and in accordance with any arrangement which may be approved by the amalgamation tribunal and included in the scheme, and during such postponement of winding up a constituent company shall cease to be a railway company within the meaning of Section two hundred and sixty-seven of the Companies (Consolidation) Act, 1908, hut any securities of the constituent company which are at the date of amalgamation securities in which trustees are by law entitled to invest trust funds, shall continue to he such securities.

(2) With respect to the scheme for the Western Group, paragraphs ( b ) and ( c ) and, except so far as it relates to the name and capital of the company, paragraph ( a ) of the foregoing Sub-section shall not apply, and the Great Western Railway Company shall, until the scheme comes into operation, be treated for the purposes of this Act as a constituent company, and after the scheme comes into operation, as an amalgamated company; and. anything which under this Act is to he or may be done by the constituent companies in a group may, in the case of the Western Group, be done by the Great Western Railway Company.

I presume the right hon. Baronet the Member for the City of London does not wish to move his Amendment in Subsection (1, a ) to leave out the words "or expedient."

I beg to move, in Subsection (1, c ), after the word "Act" ["amending that Act"], to insert the words

"and such modifications may provide that any committees appointed under Section ninety-five of the Companies Clauses (Consolidation) Act, 1845, may comprise persons who, though not directors of the company, are proprietors and possess such other qualifications (if any) as may he provided by the scheme."

At an earlier stage in the discussion to-day I incidentally referred to this Amendment. Under the Companies Clauses (Consolidation) Act, 1845, which, I may add, is adopted with modifications in every Act passed since, permission was given to the directors to appoint committees themselves for certain purposes which they delegate to such committees. The Amendment which I now propose would enlarge that power and permit them to elect persons not necessarily directors, but who are proprietors of the company, and who are otherwise qualified to vote on share capital, and to put them upon committees which will have specific duties entrusted to them under the terms of the scheme. This is rendered the more necessary when we consider the size of these very large groups of companies, extending from the North of Scotland to the Thames. They are to have power to appoint these people for specific and limited purposes, and it would, of course, be almost impossible for the group to carry out their undertakings with the comparatively small numbers indicated in the Bill.

Can we be informed by the hon. Gentleman in charge of the Bill whether these persons so appointed will be paid, whether they will have facilities for cheap travel, and, generally speaking, how far their appointment will be a burden on the public?

This Amendment provides that the scheme may make the necessary provision for the election of these what I may call co-opted directors, and the scheme will be the appropriate instrument to say what exactly shall happen in regard to them.

That is entirely a question for the directors and shareholders to settle among themselves. It does not necessarily follow that they will be paid. Some may and some may not be. It depends entirely upon the circumstances, on the work they have to do, and on the wish of the company they are asked to serve.

The hon. Gentleman says it depends on the shareholders and directors—

I thought the hon. Gentleman intervened only in order to answer my point.

Amendment agreed to.

I beg to move, in Subsection (1, d ) after the word "scheme" ["embodied in the scheme"], to insert the words The compensation schemes were carefully discussed upstairs. They are very comprehensive in character, and if an employé or servant of a company is in any degree worse off by reason of the amalgamation he has an absolute right to compensation. A director of a company is technically not an officer or servant of the company, and, therefore, under the provision as it stands he is not to be compensated. I submit there is general justice in compensating him. I may tell the House that in amalgamation schemes which have come under my notice it is a common practice to give moderate and reasonable compensation to directors who become redundant and lose their positions.

I would specially direct the attention of the House to the form of my Amendment. When we passed the Clause compensating the officers and workmen, the compensation was made a charge on the amalgamated group, and, therefore, it came out of the assets of the group. My Amendment, however, places the compensation for directors on the constituent companies. It is a very important difference, because the constituent company will have to pay the compensation before it is taken over, and consequently the compensation is in no sense a charge on the public. It cannot be a charge on the public, because before the company is assessed by the amalgamation tribunal it will, if it sees fit, have paid this compensation, and its value will have been to that extent diminished.

Therefore the first point I want to make is that the compensation is not to be a charge either on the public or on traders. It is to be paid by the shareholders. I quite recognise there will be in all parts of the House an objection to compensating those gentlemen, even although it is at the expense of the shareholders, but the shareholders will be perfectly free and unfettered. If they think fit to pay the money it will be for them to say so. All the Bill does is to give them a chance of saying that a moderate sum of compensation shall be paid to those members of the board whose services are no longer required. Again, I ask the House to consider this—there will be a great many boards which will come to an end. Take the Western Group for example. There will be seven large companies and I do not know how many small ones. There will be 30 or 40 small companies to these seven large companies and these small companies have got boards. I have reckoned that the members of the boards of the seven large companies will come to something about 120 in number all together. Of these only a maximum of 28 can go on to the Group board, and the rest will be deprived of their office, as well as those who are on the boards of the smaller companies. There will thus be a large number of people who will have lost their positions, and amongst these will be men who have for years past given a large part of their time to the services of the railway companies. A director is not excessively paid. I do not think anyone gets more than £400 a year—a good many get a great deal less —and a large body of these men have given devoted service to the lines. I appeal to the House to allow the shareholders, if they so desire, to recompense these people. You are imposing no charge on the group. You are not increasing the capital of the group, but rather you are diminishing it. You are imposing no compulsion on the shareholder, you are only saying that if they so wish they shall have power to grant this compensation.

On a point of Order. I should like to know whether it is in order to take authority in a Bill for a matter which is already within the power of the constituent companies without any authority from this House? That is to say, that any company could at this moment under its ordinary authority and powers, without any vote of this House, vote any sum it liked to its directors. That would be subject to the confirmation of the shareholders. I would like to ask whether it is in order to take additional power?

I have taken the best advice I can, and I am advised that it would not be within the power of the shareholders of any constituent company, unless express authority is given in this Bill. They have not got that power.

I do not think a point of Order arises here. Even if the fact is as stated by the right hon. Member for Derby, that the companies have already power to grant this, and that the Amendment is unnecessary, that does not put it out of order.

This Amendment is one which the Government desires to leave to the decision of the House, and the Government Whips will not be put on. In this case we are asked to give power to the companies to pay out of their private funds; it can have no effect at all upon the general public interest in connection with the cost of transportation in the future. We are asked to give them power to pay out of their private funds such sums as the proprietors of these companies may desire to pay to their displaced directors. This money is paid out of the assets of the constituent companies, and that means that it does not come out of their funds, which can be charged to working expenses. It cannot, under the words of the Amendment be otherwise, and, frankly, if these words had not been put in, I should have opposed it. It is a payment out of their own funds, not debitable to working expenses, of such compensation as they desire to give to their directors.

Is it not the case that the Amalgamation Tribunal may provide for compensation out of the assets of the constituent company. If it is so provided, the shareholders have no say in the matter.

The scheme submitted by these companies to the Amalgamation Tribunal may provide that the companies may, out of their own money, pay to their directors certain compensation for displacement. The shareholders will certainly have to sanction the payment, and the Amalgamation Tribunal is a safeguard. It will see that the payment is not grossly excessive. It cannot be debited to the working expenses of the amalgamating company, which practically alone concern us, as protecting the public interest. There are ample provisions in the Bill for the amalgamation scheme being submitted to the shareholders, and their raising objections if they wish. Not speaking for the Government, I support this as offering a fair measure for providing such compensation as the shareholders may desire. But this is a matter which the Government wish to leave entirely to the House without putting on the Whips.

I do not myself see why a man who has rendered long, competent, and valuable services to a company as a director should not receive just compensation, as well as any other class of person. I start on that basis, but I was very anxious as to what check would be put upon the amount which might be voted. My right hon. Friend has said that, in the first instance, it is the shareholders' duty to say what the amount should be, if the directors give the shareholders an opportunity of giving them compensation. Those of us who have anything to do with railway meetings, in however small a way, or who hold any shares in railway companies, know what an amount of interest you have to get up before you either attend a railway meeting or sign a proxy relating to it. We know what a large amount of public opinion there has to be before one takes any trouble in the matter. It is quite easy to say that if you do not take the trouble you ought to take the consequences, and I quite admit that. We know, however, how these things work, and I want to be quite clear that it is not only implicit, but expressed in the Bill that any such sum that may be voted by the shareholders out of their own assets to their own directors has to have the final seal of the approval of the tribunal, constituted as we know it to be. I dare say it is somewhere in the Bui, but I should be very glad if my right hon. Friend, or some other hon. Member who knows the Bill more intimately than I do, would point out where it is expressly so stated. If that be the case, so far as I am concerned, I certainly would not vote against the Amendment.

There is one point that I should like to be made clear when a reply is given to the right hon. Gentlemen the Member for Peebles. The amalgamation schemes contemplated by Clause 3 include amalgamation schemes which may be prepared by the tribunal in default of agreement between the constituent companies. It is quite true that under Clause 7 (2), in the case of an agreed amalgamation scheme, it has to be submitted to the proprietors of the constituent companies, but where the amalgamation scheme is prepared by the tribunal in default of agreement between the constituent companies, it then becomes operative when the amalgamation tribunal has settled it. They might, therefore, provide for compensation to retiring directors against the will of the members of the constituent company or without their knowledge or consent. I follow the right hon. Gentleman the Member for Peebles in saying that the directors might reasonably be compensated if the shareholders of the constituent companies think that they are fit subjects for receiving compensation; but I should strongly object to giving the amalgamation tribunal the power to settle schemes in which they might, because it became the habit or fashion, include compensation to directors in companies whose shareholders have never been consulted. I strongly hope that the Amendment will not be accepted until it is made quite clear that the shareholders shall in all cases be required to give their consent to any such compensation.

I am afraid that this again is an unholy combination. Such combinations always make me feel very suspicious, and in this case my suspicions are not allayed by the astonishing explanation which the right hon. Gentleman has given of the meaning of this Amendment. Anyone who reads Clause 3 of the Bill will see that this Amendment should be read as follows: authorising them, in this Amendment, themselves to impose a burden upon the shareholders in the railway companies, and you are seeking to make that appear better by asking us whether we would not compensate the poor hard-working directors. If we have to compensate the poor hard-working directors, let us do it, as we have done the rest of the compensation in the Bill, from the public funds, and not from the companies' reserve funds, which are very often imaginary. If you are going to force the shareholders, without consulting them, to contribute these compensations to their directors, then all I can say is that you ought to get that money out of the public purse and not out of the private purse of the shareholders.

But is there really this fine distinction to be drawn between the compensation of the directors and the compensation of the officials? Is it, in the one case, going to come out of the reserve funds and, in the other case, out of the savings or profits made by the railway company, so that it will fall upon the general trading public in the future? If it comes out of the reserve funds, it ultimately comes out of the pockets of the trading community as a whole. Take the case of the Barry Railway, which, I am told, has large reserves. Suppose that its reserves amount to £500,000 and suppose that it pays that £500,000 to its directors —I am taking an extreme case. If you take away those reserves, will anyone tell me that in future years that railway company will be able to run its traffic as cheaply as it will, having those reserves? The North Eastern Railway Company has built up reserves. It is a well-managed company because it has built up those reserves, which enable it to carry its traffic economically. Will anyone tell me that those reserves can be taken away without the railway company, and subsequently the trading public, suffering on account of that reduction? Obviously, any reduction in the reserve funds is going to hit the community just as much as any additional expenditure on the part of the railway company as a whole. As to whether these railway directors really ought to be compensated, I cannot believe that there was any hon. Member of this Houes who was not shocked to see that when Farrow's Bank was sold to an American, Mr. Farrow demanded £50,000 compensation for the loss of his directorate. That is a kind of thing that we do not want to encourage.

He got some. That is happening over and over again in the City. Whenever one company is absorbed by another, there is always enormous compensation to the directors who lose their jobs, and that is not a thing that we ought to encourage. Those of us who happen to be shareholders know that you have practically no control over the directorate of any company, but do we want to set the seal of propriety upon this payment of compensation to a man for losing, not a whole-time job, but a part-time job, which involves, perhaps, one day's work a week or one day's work a month? You are dealing, not with the directors of the big railway companies, but with the small directors of the small railway companies, and there are hundreds—perhaps thousands—of them. You are saying that any man who went once a month to the office of his railway company in order to sit at a board meeting and say nothing, is to be compensated for losing that job. I protest that it is not the duty of Parliament to compensate these vested interests. Where a man has spent his whole life working at his job, and where he is thrown out of his job because amalgamation takes place, then you are perfectly right in compensating him for the loss of his employment till he has a prospect of getting another job. In the case of the directors of all these companies, it is monstrous to say that the shareholders, and ultimately the public, should be compelled to pay these large sums to compensate them for having, it is true, done their work, but for very good pay, in the past. If they had done their work voluntarily you might have compensated them, but if they have been paid all the time, why go on paying them when they ceased to do work? Certainly I shall vote against it.

The first thing that strikes the notice of the casual observer with regard to this Amendment is that the Mover and the five hon. Members who are supporting it are all railway directors. Under the circumstances, further comment appears to be superfluous. This question arose in an indirect way in Committee B, and when it was mentioned casually that they were to be compensated the mere suggestion raised, I might almost say, a howl of indignant denial from the railway directors, who were rather over represented upon that Committee.

Hull was under-represented and unjustly treated. What is the loss these railway directors are going to sustain, and what position do they at present hold? I do not think one can reasonably call a director an employé of the company. Surely, if anyone is an employer he is, and employers under these circumstances certainly ought not to be compensated. I believe in the majority of cases they hold their directorships for three years, and at the end of that period they have to apply to the proprietors for re-election. Therefore they hold their position entirely at the goodwill of the shareholders. As far as I can see no compensation under these circumstances is required. After all, if the shareholders merely wish to give some recognition of the services which have been rendered, there is some other way of doing it than in hard cash, and I am sure a very large number of the directors would take a vote of thanks at the shareholders' meeting quite as readily as a gift of £2,000, and it would, in my opinion, be a more dignified way of retiring from the position they hold. One of the principal arguments employed by the railway directors in opposition to any suggestion of nationalising the railways is the fact that a very large number of the proprietors are small holders and very poor men. We now have the spectacle of the railway directors endeavouring to make it legal for them to come upon these poor men to make them a large gift in compensation for the position they stand to lose. Under the circumstances, and as representing the shareholders of these railways, I shall have the greatest possible pleasure in voting against the Amendment.

The hon. Member who has spoken on behalf of the shareholders if the Amendment were carried would have an opportunity at the shareholders' meeting of voting against such a scheme. I take it the scheme will go before the shareholders.

That is what I expect to happen at any rate, and the shareholders and directors are not a hostile community who spend their time as a rule in fighting each other. They are on pretty good terms, and if the shareholders think it wise and right and proper it may be done. The right hon. Member for Derby (Mr. Thomas) introduced a very excellent Bill in some respects for nationalising. One of the Clauses provided for compensation for the directors, and for perpetuating their passes. When the hon. Member suggests the figure of £2,000 is he not rather trying to frighten the House of Commons? Some small railway companies pay one guinea or two guineas for attendance at a meeting, and I have attended such meetings when the remuneration has about half paid my expenses. If they like to give £10, £20, or £100, or whatever it may be, no great harm is done. It is not a thing that is worth making such a big fuss about. The Government have very wisely intimated through the Minister that the House will be left to use its own discretion and that no Whips will be put on. If the House of Commons, the shareholders of the companies, and all the parties concerned, like to agree to come to an arrangement, I do not see why we should be disturbed very seriously because something that seems to be fair and reasonable is being done. After all, during the years that have gone by, when all sorts of people have been receiving enhanced remuneration for all kinds of service, I do not think it has been usual for the railway directors to receive any enhanced remuneration. They make no great appeal about it, but taking the Bill of the right hon. Member for Derby as an illustration of the common fairness of the House of Commons, if they like to do this thing, why should they not do it? It seems to me that the Amendment meets the case fairly, leaving a reasonable opportunity for the shareholders to have a say in the matter, and I support the Amendment.

On a point of Order. Will directors be entitled to vote in this Division?

I think this is one of the cases where we are dealing with a class of persons.

I should like to answer what I think is really the principal point before the House, which was raised by the right hon. Gentleman the Member for Peebles (Sir D. Maclean). He said where a scheme was an agreed scheme it would come before the shareholders. Where it was not an agreed scheme, and the tribunal had to settle it, it did not go before the tribunal. To me it seems reasonable that if we are taking the line that this is the money of the shareholders, and the directors are their nominees, the directors should be recompensed for their loss of office by the shareholders out of their own proper funds, and it should not be debited to working expenses. We ought to ensure that the shareholders shall in fact have a voice whether it is an agreed scheme or not. I think the criticism which has been levelled at this in fact reveals that weakness. If it is not an agreed scheme the tribunal settles it without reference to the shareholders. I suggest that we should add to the Amendment the words, "and may with the consent of the proprietors provide." That would perhaps meet the views of the majority of the House.

The hon. and gallant Member is irrevocably opposed to anybody getting compensation.

It would meet the views of the majority of hop. Members that the directors should be recompensed for the loss of office by the proprietors providing the proprietors have a last say as to what they would give, and provided it is out of the proprietors' own funds and not out of the working expenses which they could pass on to the users of the railway. Therefore, I suggest that my hon. Friend should move these words as an Amendment to his own Amendment.

I beg to move, as an Amendment to the proposed Amendment, after the word "may," to insert the words "with the consent of the proprietors."

Amendment to proposed Amendment agreed.

Question proposed, "That the proposed words, as amended, be there inserted in the Bill."

As the Amendment reads, it appears to me that provision is to be made for compensation of the directors whose office is abolished in connection with the constituent companies only.

Silence might be misunderstood. I want to make it perfectly clear that the proposal of the Government to leave this Amendment to a free vote of the House, leaves our party perfectly free; therefore, I am speaking for myself. An Amendment has been made to introduce into the Bill a class interest, and if I am going to claim that the platelayers who suffer shall be compensated, logically I have no right to say that the director who suffers should be put in a worse position. We are claiming on behalf of the railway men that if a result of this Bill any railway man suffers, whether he be a platelayer or any other worker, it is only fair that he should be compensated because of the circumstances which have created the position. Supposing we defeat this Amendment, not only would that be an injustice in the sense that we are arguing it, but, as I understand the position, it would practically prevent the shareholders, if they were desirous, from doing justice to those who had served them. That is not a fair position. If we say that we will deprive them, even if they so desired to do it, of the opportunity of doing justice, it would be a monstrous and unfair position, more especially having regard to the fact that a further safeguard is to be given that the compensation is to be paid out of the shareholders' money. The reserves of the company must in some way or other be distributed, and it could not affect the public, other than the shareholders, whether or not this money was voted. Having regard to the fact that the shareholders are to have an opportunity of expressing an opinion, and in order to be consistent and logical when I claim for the platelayer compensation because he is suffering as a result of this Bill, I have no right to assume that there is a right for the man at the bottom without admitting that there is a right for those at the top.

I am astounded to hear an analogy drawn between the position of the weekly wage-earner who is depending for his livelihood upon his work and that of a director who occasionally attends meetings, not as a means of livelihood, but as a part-time recreation, and receives a certain number of guineas a year for attending the meetings. I have always understood that directors held their office from year to year or for two or three years. There is no vested interest in the job.

The platelayer is depending for his living upon his weekly wage, and I cannot understand the mentality of those who draw a comparison between a director who draws guineas for occasional attendance at board meetings and the man who is depending for his living upon his weekly wage. The opinion outside will be that, after all the pleading about widows and orphans who are shareholders of railway companies, these people, and also the traders in whose interest this Bill was supposed to be drafted, will have to bear the burden, because if you deplete the reserve funds, you will have to build it up again, and that building up will come out of the trader and the public. You can juggle with figures as you like, but undoubtedly if you do deplete the reserve fund you will have to build it up, and it will have to come out of the rates which you will have to impose upon traders in future. It is unfortunate, when we are asking everybody to have special regard to economy, and when there is vast unemployment, that we should be proposing to take thousands of pounds out of the pockets of traders in order to create a vested interest which is non-existent. The director is paid for his services; he has not a lifetime appointment, and this Amendment is most undesirable.

The right hon. Member for Derby (Mr. Thomas) did not complete his argument. He argued that because the platelayer was to be compen- sated, it was only right that the directors should be compensated. Supposing this Bill has the effect of reducing considerably the dividends of the shareholders, surely, according to his argument, the shareholders ought to be compensated.

This Amendment is an injunction to the shareholders that they ought to compensate the directors who are dispossessed. There is nothing to prevent them doing so if they desire, but this is an attempt to tip the scale and to give to the claim some statutory obligation. I do not think that we ought to insert such words. If the shareholders desire to compensate the directors they can do so without any words of this kind.

They cannot. I take it that my hon. and gallant Friend was not here when it was stated in the Debate that unless some power of this sort was included in the Bill the shareholders had no power to give compensation.

I am not prepared to give this instruction to the shareholders. I think that the matter should be left open to their decision.

I do not want to interrupt my hon. and gallant Friend, but I have taken advice on this subject, and I am advised that it is ultra vires for shareholders of these statutory companies, unlike some ordinary industrial companies, to give anything, even if they should so desire, in this form as compensation without special powers.

I am not prepared to enter into a legal argument with the

right hon. Gentleman, but even supposing that his argument be correct, I do not think that any such powers ought to be given. Directors of railways are supporting this Bill in consultation with their colleagues, the members of the Rail-way Association, and if they are to be dispossessed they must accept the result of their own action. I am not prepared to consent to compensate gentlemen for the action which they have taken. Rail-way directors as a rule are not dependent merely on their directors' fees, which are a small consideration in comparison with their general income.

I do not think that it is quite correct to say that this leaves the matter entirely open to shareholders. It does in a sense. It is true that it is a recommendation to shareholders, and they may at their meeting refuse to carry it. That is the only check which they have got, but there may be a considerable minority of shareholders who would feel it a bitter disappointment to lose part of their dividends to give compensation to directors. We are giving, it is true, to the majority of shareholders the power to vote this money, but that is not quite the same thing as each individual shareholder having the power to give it willingly.

Before the Question be put, may I ask whether it is a fact that under the Water Board Act the directors were compensated, and that the hon. Baronet received compensation?

Question put, "That the proposed words, as amended, be there inserted in the Bill."

The House divided: Ayes, 140; Noes, 116.

Division N o. 295.]

AYES.

[10.10 p.m.

Adair, Rear-Admiral Thomas B. S.

Carr, W. Theodore

Fremantle, Lieut.-Colonel Francis E.

Agg-Gardner, Sir James Tynte

Casey, T. W.

Geddes, Rt. Hon. Sir E. (Camb'dge)

Amery, Leopold C. M. S.

Chamberlain, Rt. Hn. J. A. (Birm. W.)

Gibbs, Colonel George Abraham

Armstrong, Henry Bruce

Churchman, Sir Arthur

Gilmour, Lieut.-Colonel Sir John

Baldwin, Bt. Hon. Stanley

Cobb, Sir Cyril

Goulding, Rt. Hon. Sir Edward A.

Balfour, George (Hampstead)

Colvin, Brig.-General Richard Beale

Grant, James Augustus

Barnett, Major Richard W.

Conway, Sir W. Martin

Grayson, Lieut.-Colonel Sir Henry

Barnston, Major Harry

Cope, Major William

Green, Albert (Derby)

Beckett, Hon. Gervase

Cowan, D. M. (Scottish Universities)

Green, Joseph F. (Leicester, W.)

Benn, Sir A. S. (Plymouth, Drake)

Cowan, Sir H. (Aberdeen and Kinc.)

Greenwood, Colonel Sir Hamar

Bennett, Sir Thomas Jewell

Davies, Thomas (Cirencester)

Hall, Lieut.-Col. Sir F. (Dulwich)

Boscawen, Rt. Hon. Sir A. Griffith-

Davison, Sir W. H. (Kensington, S.)

Hamilton, Major C. G. C.

Bowyer, Captain G. W. E.

Elliot, Capt. Walter E. (Lanark)

Hancock, John George

Brittain, Sir Harry

Elliott, Lt.-Col. Sir G. (Islington, W.)

Hannon, Patrick Joseph Henry

Brown, T. W. (Down, North)

Eyres-Monsell, Com. Bolton M.

Harris, Sir Henry Percy

Bruton, Sir James

Fell, Sir Arthur

Henderson, Major V. L. (Tradeston)

Buckley, Lieut.-Colonel A.

Fisher, Rt. Hon. Herbert A. L.

Henry, Denis S. (Londonderry, S.)

Bull, Rt. Hon. Sir William James

Ford, Patrick Johnston

Herbert, Dennis (Hertford, Watford)

Burn, Col. C. R. (Devon, Torquay)

Forestier-Walker, L

Hewart, Rt. Hon. Sir Gordon

Campbell, J. D. G.

Forrest, Walter

Higham, Charles Frederick

Hood, Joseph

Moore-Brabazon, Lieut.-Col. J. T. C.

Spencer, George A.

Hope, Sir H. (Stirling & Cl'ckm'nn, W.)

Morison, Rt. Hon. Thomas Brash

Sprot, Colonel Sir Alexander

Hopkins, John W. W.

Morrison, Hugh

Stanier, Captain Sir Seville

Hopkinson, A. (Lancaster, Mossley)

Munro, Rt. Hon. Robert

Stanley, Major Hon. G. (Preston)

Home, Edgar (Surrey, Guildford)

Murray, Hon. A. C. (Aberdeen)

Starkey, Captain John Ralph

Home, Sir R. S. (Glasgow, Hillhead)

Nail, Major Joseph

Stephenson, Lieut.-Colonel H. K.

Hume-Williams, Sir W. Ellis

Neal, Arthur

Sturrock, J. Leng

Jameson, John Gordon

Newman, Sir R. H. S. D. L. (Exeter)

Sugden, W. H.

Jephcott, A. R.

Oman, Sir Charles William C.

Surtees, Brigadier-General H. C.

Jodrell, Neville Paul

Parker, James

Thomas, Rt. Hon. James H. (Derby)

Johnson, Sir Stanley

Pease, Rt. Hon. Herbert Pike

Thomson, Sir W. Mitchell- (Maryhill)

Jones, J. T. (Carmarthen, Llanelly)

Pennefather, De Fonblanque

Thorpe, Captain John Henry

Kellaway, Rt. Hon. Fredk. George

Perring, William George

Townley, Maximilian G

King, Captain Henry Douglas

Prescott, Major W. H.

Tryon, Major George Clement

Lane-Fox, G. R.

Pretyman, Rt. Hon. Ernest G.

Walton, J. (York, W. R., Don Valley)

Lewis, Rt. Hon. J. H. (Univ., Wales)

Rankin, Captain James Stuart

Warren, Sir Alfred H.

Lloyd-Greame, Sir P.

Ratcliffe Henry Butler

Weston, Colonel John Wakefield

Locker-Lampson, G. (Wood Green)

Raw, Lieutenant-Colonel Dr. N.

Whitla, Sir William

Locker-Lampson, Com. O. (H'tingd'n)

Rees, Capt. J. Tudor- (Barnstaple)

Williams, C. (Tavistock)

Lorden, John William

Reid, D. D.

Wilson, James (Dudley)

M'Connell, Thomas Edward

Richardson, Alexander (Gravesend)

Wood, Hon. Edward F. L. (Ripon)

McCurdy, Rt. Hon. Charles A.

Roberts, Rt. Hon. G. H. (Norwich)

Worsfold, T. Cato

M'Lean, Lieut.-Col. Charles W. W.

Roberts, Sir S. (Sheffield, Ecclesall)

Worthington-Evans, Rt. Hon. Sir L.

Macpherson, Rt. Hon. James I.

Rodger, A. K.

Young, E. H. (Norwich)

Macquisten, F. A.

Samuel, A. M. (Surrey, Farnham)

Mallalieu, Frederick William

Sanders, Colonel Sir Robert Arthur

TELLERS FOR THE AYES.—

Malone, Major P. B. (Tottenham, S.)

Seager, Sir William

Major Hills and Sir John

Mitchell, Sir William Lane

Shortt, Rt. Hon. E. (N'castle-on-T.)

Randles.

NOES.

Astbury, Lieut.-Com. Frederick W.

Graham, D. M. (Lanark, Hamilton)

Purchase, H. G.

Baird, Sir John Lawrence

Graham, W. (Edinburgh, Central)

Rae, H. Norman

Barnes, Rt. Hon. G. (Glas., Gorbals)

Gray, Major Ernest (Accrington)

Raffan, Peter Wilson

Barnes, Major H. (Newcastle, E.)

Gretton, Colonel John

Raper, A. Baldwin

Bellairs, Commander Carlyon W.

Gritten, W. G. Howard

Richardson, R. (Houghton-le-Spring)

Benn, Captain Wedgwood (Leith)

Grundy, T. W.

Roberts, Samuel (Hereford, Hereford)

Birchall, Major J. Dearman

Guest, J. (York, W. R., Hemsworth)

Robinson, S. (Brecon and Radnor)

Bowerman, Rt. Hon. Charles W.

Hall, Captain Sir Douglas Bernard

Rose, Frank H.

Bramsdon, Sir Thomas

Hall, F. (York, W.R., Normanton)

Roundell, Colonel R. F.

Breese, Major Charles E.

Hartshorn, Vernon

Royce, William Stapleton

Briggs, Harold

Hayward, Evan

Scott, A. M. (Glasgow, Bridgeton)

Broad, Thomas Tucker

Hinds, John

Seddon, J. A.

Bromfield, William

Hirst, G. H.

Shaw, William T. (Forfar)

Brown, Major D. C.

Hogge, James Myles

Short, Alfred (Wednesbury)

Brown, James (Ayr and Bute)

Holmes, J. Stanley

Smith, Sir Harold (Warrington)

Butcher, Sir John George

Hunter-Weston, Lieut-Gen. Sir A. G.

Smith, W. R. (Wellingborough)

Cairns, John

Irving, Dan

Spoor, B. G.

Cape, Thomas

John, William (Rhondda, West)

Sueter, Rear-Admiral Murray Fraser

Child, Brigadier-General Sir Hill

Johnstone, Joseph

Swan, J. E.

Clynes, Rt. Hon. John R.

Jones, G. W. H. (Stoke Newington)

Thomas, Brig.-Gen. Sir O. (Anglesey)

Coote, Colin Reith (Isle of Ely)

Jones, Henry Haydn (Merioneth)

Thomson, T. (Middlesbrough, West)

Davies, Alfred Thomas (Lincoln)

Kelley, Major Fred (Rotherham)

Wallace, J.

Davies, Sir David Sanders (Denbigh)

Kenworthy, Lieut.-Commander J. M.

Walsh, Stephen (Lancaster, Ince)

Dawes, James Arthur

Kenyon, Barnet

Ward-Jackson, Major C. L.

Doyle, N. Grattan

Lawson, John James

Ward, Col. J. (Stoke-upon-Trent)

Edge, Captain William

Lunn, William

Ward, Col. L. (Kingston-upon-Hull)

Edwards, C. (Monmouth, Bedwellty)

Lyle, C. E. Leonard

Warner, Sir T. Courtenay T.

Edwards, G. (Norfolk, South)

Maddocks, Henry

Waterson, A. E.

Edwards, Major J. (Aberavon)

Matthews, David

White, Charles F. (Derby, Western)

Entwistle, Major C. F.

Moreing, Captain Algernon H.

Wild, Sir Ernest Edward

Evans, Ernest

Morgan, Major D. Watts

Williams, Aneurin (Durham, Consett)

Falcon, Captain Michael

Murchison, C. K.

Willoughby, Lieut.-Col. Hon. Claud

Falle, Major Sir Bertram Godfray

Myers, Thomas

Wilson, Colonel Leslie O. (Reading)

Finney, Samuel

Newbould, Alfred Ernest

Wise, Frederick

Foxcroft, Captain Charles Talbot

O'Connor, Thomas P.

Young, Sir Frederick W. (Swindon)

Fraser, Major Sir Keith

O'Grady, James

Young, Robert (Lancaster, Newton)

Galbraith, Samuel

Parkinson, John Allen (Wigan)

Ganzoni, Sir John

Pearce, Sir William

TELLERS FOR THE NOES.—

Gillis, William

Percy, Lord Eustace (Hastings)

Colonel Wedgwood and Mr. Tyson

Glanville, Harold James

Perkins, Walter Frank

Wilson.

I beg to move, in Subsection (1), to leave out the words "two years" ["not exceeding two years of the winding up"], and to insert instead thereof the words "five years, or, if for special reasons the amalgamation tribunal think fit, ten years."

When the Bill was going through Committee an Amendment was moved which is now the proviso of Sub-section (1). Among other things which the amalgamation scheme must provide is, under Subsection (1, b ), the winding up of the constituent companies. In Committee it was pointed out that it might be convenient to keep a constituent company alive, not as a railway company but as a holding company of the securities which would be allotted to it by the tribunal out of the new securities in the group companies. The proviso was inserted stating that for a period not exceeding two years the constituent company might be continued as a holding company. The disposal of the assets entrusted to it would still be a matter to be dealt with under the amalgamation scheme. It has now been thought by those who originally moved that Amendment, that the term of two years is too short, that there will be financial adjustments and arrangements to be made, and that there will be no ill result that one can foretell to the shareholders, in leaving the securities in the hands of the holding company for a reasonable period. Therefore, we are moving to substitute the word "five" for the word "two," making the normal period five years with the provision that for special reasons, approved of by the Amalgamation Tribunal, the time may be extended for a further period of five years, making ten years in all. General interests will not be affected, and it is purely a question as to what the shareholders in the constituent companies may desire, and what may be found most convenient, in bringing about the readjustment of capital necessitated by the Bill.

I am, not quite sure as to why the hon. Gentleman should have moved this Amendment himself. He rightly says that the Amendment in Committee is moved by someone else. It may have been the right hon. Baronet the Member for the City of London (Sir F. Banbury) who thought that the period was too short, during which the holding companies should be in existence. Now, all the Parliamentary Secretary says, is that it was thought that the period was too short, but he does not tell us why the Government changed its mind on this.

If the hon. and gallant Member wishes I will deal with that at once. We are dealing with this matter under a Guillotine Resolution, and it was thought there was a possibility that this particular Clause might not be discussed.

Still the Parliamentary Secretary does not tell us why the Government changed their mind upon this.

I think that is quite possible. That may be one part of the reasons. It is the case, however, that though there may be some hon. Members in favour of this Amendment, there are others who are not. I do not wish to have this period of 10 years put into the Bill, and I am not sure that I agre with the substitution of five years for two years. The sooner the holding companies cease to exist the better, and I cannot see any reason at all why the Government should have come round to the view expressed by the right hon. Member for the City of London.

Surely now that we have voted compensation to the directors, we need not perpetuate the holding companies. This is a scheme whereby the companies can continue indefinitely the existence of the boards of directors. The directors will continue to meet and will be handed over the lump sum due to their company, and they will proceed very laboriously to divide that lump sum among the various classes of shareholders As long as the holding companies continue, every single railway director will continue to have his job, and will continue to travel free throughout the length and breadth of the country.

I wish I could have that assurance officially from the Government. They will continue to be directors of the North Eastern and the North Staffordshire, and the Furness, and all these other railways. They will continue to have directors meetings twice a year to divide this sum among the various classes of shareholders. We managed in Committee to have this period cut down from five years to two. First the Minister suggested three, but under pressure he reduced the three to two, and now we are throwing that over entirely and making it ten years, which no one in Committee even suggested. It is simply because the Ministry of Transport is in close touch with the railway world and the boards of directors that govern the railway world. I protest that, instead of looking out for the public interest, the Ministry is solely intent on getting its Bill through. The protection of the public interest is left entirely to Members on these Benches. We are always supposed to be a class party, and yet it is left to us to look after the interests of the public as against the railway directors on the one hand and the Ministry of Transport, which is co-ope rating with the railway directors, on the other hand. These holding companies are to perpetuate the financial side of the railway companies, in order that the various classes of shareholders can be kept distinct, so that the interests of the debenture holders and the first and second preference shareholders can remain as they are at present instead of being amalgamated into two or three general classes of shareholders. Any arrangement as to the absorption of these different classes of shareholders into other classes in the general combined administration can be

made just as easily now as ten years hence, and it is merely in order to preserve the present system from an additional ten years that this Amendment has been moved.

Question, "That the words ' two years ' stand part of the Bill," put and negatived.

The hon. and gallant Member is too late. I have already collected the voices, but he can vote against the insertion of the words proposed to be inserted.

Question put, "That the proposed words be there inserted in the Bill."

The House divided: Ayes, 186; Noes, 81.

Division No. 296.]

AYES.

[10.30 p.m.

Adair, Rear-Admiral Thomas B. S.

Ford, Patrick Johnston

Lloyd-Greame, Sir P.

Agg-Gardner, Sir James Tynte

Forestier-Walker, L.

Locker-Lampson, G. (Wood Green)

Amery, Leopold C. M. S.

Forrest, Walter

Locker-Lampson, Com. O. (H'tingd'n)

Armstrong, Henry Bruce

Foxcroft, Captain Charles Talbot

Lorden, John William

Astbury, Lieut.-Com. Frederick W.

Fraser, Major Sir Keith

Lort-Williams, J.

Baird, Sir John Lawrence

Fremantle, Lieut.-Colonel Francis E.

M'Connell, Thomas Edward

Baldwin, Rt. Hon. Stanley

Ganzoni, Sir John

McCurdy, Rt. Hon. Charles A.

Balfour, George (Hampstead)

Geddes, Rt. Hon. Sir E. (Camb'dge)

M'Lean, Lieut.-Col. Charles W. W.

Banbury, Rt. Hon. Sir Frederick G.

Gibbs, Colonel George Abraham

Macpherson, Rt. Hon. James I.

Barnett, Major Richard W.

Gilmour, Lieut.-Colonel Sir John

Macquisten, F. A.

Barnston, Major Harry

Glyn, Major Ralph

Maddocks, Henry

Beckett, Hon. Gervase

Goulding, Rt. Hon. Sir Edward A.

Mallalieu, Frederick William

Bellairs, Commander Carlyon W.

Grant, James Augustus

Malcne, Major P. B. (Tottenham, S.)

Benn, Sir A. S. (Plymouth, Drake)

Gray, Major Ernest (Accrington)

Marriott, John Arthur Ransome

Boscawen, Rt. Hon. Sir A. Griffith-

Grayson, Lieut.-Colonel Sir Henry

Matthews, David

Bowyer, Captain G. W. E.

Green, Albert (Derby)

Middlebrook, Sir William

Breese, Major Charles E.

Green, Joseph F. (Leicester, W.)

Mildmay. Colonel Rt. Hon. F. B.

Brittain, Sir Harry

Guest, Capt. Rt. Hon. Frederick E.

Mond, Rt. Hon. Sir Alfred Moritz

Brown, T. W. (Down, North)

Hall, Captain Sir Douglas Bernard

Moore-Brabazon, Lieut.-Col. J. T. C.

Bruton, Sir James

Hall, Rr Adml Sir W.(Liv'p'l.W.D'by)

Moreing, Captain Algernon H.

Buckley, Lieut.-Colonel A.

Hamilton, Major C. G. C.

Morison, Rt. Hon. Thomas Brash

Burn, Col. C. R. (Devon, Torquay)

Hannon, Patrick Joseph Henry

Morrison, Hugh

Campbell, J. D. G.

Harmsworth, C. B. (Bedford, Luton)

Munro, Rt. Hon. Robert

Carr, W. Theodore

Henderson Major V. L. (Tradeston)

Neal, Arthur

Casey, T. W.

Henry, Denis S. (Londonderry, S.)

Newman, Sir R. H. S. D. L. (Exeter)

Cecil, Rt. Hon. Evelyn (Birm., Aston)

Herbert, Dennis (Hertford, Watford)

Oman, Sir Charles William C.

Chamberlain, Rt. Hn. J. A. (Birm. W.)

Hewart, Rt. Hon. Sir Gordon

Parker, James

Chilcot, Lieut.-Com. Harry W.

Hills, Major John Waller

Parry, Lieut.-Colonel Thomas Henry

Child, Brigadier-General Sir Hill

Hinds, John

Pease, Rt. Hon. Herbert Pike

Churchill, Rt. Hon. Winston S.

Hood, Joseph

Pennefather, De Fonblanque

Churchman, Sir Arthur

Hope, Sir H.(Stirling & Cl'ckm'nn, W.)

Perkins, Walter Frank

Coats, Sir Stuart

Hopkins, John W. W.

Perring, William George

Colvin, Brig.-General Richard Beale

Hopkinson, A. (Lancaster, Mossley)

Pratt, John William

Conway, Sir W. Martin

Home, Edgar (Surrey, Guildford)

Pretyman, Rt. Hon. Ernest G.

Coote, Colin Reith (Isle of Ely)

Horne, Sir R. S. (Glasgow, Hillhead)

Purchase, H. G.

Cope, Major William

Hunter-Weston, Lieut-Gen. Sir A. G.

Randles, Sir John Scurrah

Cowan, D. M. (Scottish Universities)

Jackson, Lieut.-Colonel Hon. F. S.

Rankin, Captain James Stuart

Cowan, Sir H. (Aberdeen and Kinc.)

Jameson, John Gordon

Raper, A. Baldwin

Davies, Thomas (Cirencester)

Jephcott, A. R.

Raw, Lieutenant-Colonel Dr. N.

Davison, Sir W. H. (Kensington, S.)

Jodrell, Neville Paul

Reid, D. D.

Doyle, N. Grattan

Johnson, Sir Stanley

Richardson, Alexander (Gravesend)

Edwards, Major J. (Aberavon)

Johnstone, Joseph

Roberts, Rt. Hon. G. H. (Norwich)

Elliot, Capt. Walter E. (Lanark)

Jones, G. W. H. (Stoke Newington)

Roberts, Samuel (Hereford, Hereford)

Elliott, Lt.-Col. Sir G. (Islington, W.)

Jones, Henry Haydn (Merioneth)

Roberts, Sir S. (Sheffield, Ecclesall)

Elveden, Viscount

Jones, J. T. (Carmarthen, Lianelly)

Robinson, S. (Brecon and Radnor)

Evans, Ernest

Kellaway, Rt. Hon. Fredk. George

Robinson, Sir T. (Lanes., Stretford)

Eyres-Monsell, Com. Bolton M.

King, Captain Henry Douglas

Roundell, Colonel R. F.

Falcon, Captain Michael

Larmor, Sir Joseph

Samuel, A. M. (Surrey, Famham)

Falle, Major Sir Bertram Godfray

Lewis, Rt. Hon. J. H. (Univ., Wales)

Sanders, Colonel Sir Robert Arthur

Fell, Sir Arthur

Lewis, T. A. (Glam., Pontypridd)

Scott, A. M. (Glasgow, Bridgeton)

Fisher, Rt. Hon. Herbert A. L.

Lindsay, William Arthur

Seager, Sir William

Seddon, J. A.

Thorpe, Captain John Henry

Willoughby, Lieut.-Col. Hon. Claud

Shaw, William T. (Forfar)

Townley, Maximilian G.

Wills, Lt.-Col. Sir Gilbert Alan H.

Shortt, Rt. Hon. E. (N'castle-on-T.)

Tryon, Major George Clement

Wilson, Lieut.-Col. M. J. (Richmond)

Smithers, Sir Alfred W.

Waddington, R.

Wise, Frederick

Sprot, Colonel Sir Alexander

Wallace, J.

Wood, Hon. Edward F. L. (Ripon)

Stanier, Captain Sir Beville

Walters, Rt. Hon. Sir John Tudor

Worthington-Evans, Rt. Hon. Sir L.

Stanley, Major Hon. G. (Preston)

Walton, J. (York, W. R., Don Valley)

Young, E. H. (Norwich)

Starkey, Captain John Ralph

Ward-Jackson, Major C. L.

Young, Sir Frederick W. (Swindon)

Stephenson, Lieut.-Colonel H. K.

Warren, Sir Alfred H.

Younger, Sir George

Sturrock, J. Leng

Weston, Colonel John Wakefield

Sugden, W. H.

Whitla, Sir William

TELLERS FOR THE AYES.—

Thomson, Sir W. Mitchell- (Maryhill)

Wild, Sir Ernest Edward

Colonel Leslie Wilson and Mr.

Dudley Ward.

NOES.

Barker, G. (Monmouth, Abertillery)

Hall, Lieut.-Col. Sir F. (Dulwich)

Richardson, R. (Houghton-le-Spring)

Barnes, Rt. Hon. G. (Glas., Gorbals)

Hall, F. (York, W.R., Normanton)

Robertson, John

Barnes, Major H. (Newcastle, E.)

Hancock, John George

Rose, Frank H.

Benn, Captain Wedgwood (Leith)

Hartshorn, Vernon

Royce, William Stapleton

Birchall, Major J. Dearman

Hayward, Evan

Sexton, James

Bowerman, Rt. Hon. Charles W.

Hirst, G. H.

Short, Alfred (Wednesbury)

Bramsdon, Sir Thomas

Hogge, James Myles

Smith, W. R. (Wellingborough)

Briggs, Harold

Holmes, J. Stanley

Spencer, George A.

Bromfield, William

John, William (Rhondda, West)

Spoor, B. G.

Brown, James (Ayr and Bute)

Kelley, Major Fred (Rotherham)

Sueter, Rear-Admiral Murray Fraser

Cairns, John

Kenworthy, Lieut.-Commander J. M.

Swan, J. E.

Cape, Thomas

Kenyon, Barnet

Thomas, Rt. Hon. James H. (Derby)

Clynes, Rt. Hon. John R.

Lane-Fox, G. R.

Thomas, Brig.-Gen. Sir O. (Anglesey)

Davies, Alfred Thomas (Lincoln)

Lawson, John James

Thomson, T. (Middlesbrough, West)

Edwards, C. (Monmouth, Bedwellty)

Lunn, William

Walsh, Stephen (Lancaster, Ince)

Edwards, G. (Norfolk, South)

Lyle, C. E. Leonard

Ward, Col. J. (Stoke-upon-Trent)

Entwistle, Major C. F.

Moore, Major-General Sir Newton J.

Warner, Sir T. Courtenay T.

Finney, Samuel

Morgan, Major D. Watts

Waterson, A. E.

Galbraith, Samuel

Murchison, C. K.

White, Charles F. (Derby, Western)

Gillis, William

Myers, Thomas

Williams, Aneurin (Durham, Consett)

Glanville, Harold James

Newbould, Alfred Ernest

Wilson, James (Dudley)

Graham, D. M. (Lanark, Hamilton)

O'Connor, Thomas P.

Wilson, Rt. Hon. J. W. (Stourbridge)

Graham, W. (Edinburgh, Central)

O'Grady, James

Wilson, W. Tyson (Westhoughton)

Gretton, Colonel John

Parkinson, John Allen (Wigan)

Wood, Major M. M. (Aberdeen, C.)

Griffiths, T. (Monmouth, Pontypool)

Pearce, Sir William

Young, Robert (Lancaster, Newton)

Gritten, W. G. Howard

Rae, H. Norman

Grundy, T. W.

Rees, Capt. J. Tudor- (Barnstaple)

TELLERS FOR THE NOES.—

Guest, J. (York, W. R., Hemsworth)

Rendall, Athelstan

Colonel Wedgwood and Mr.

Raffan.

I beg to move, to leave out Sub-section (2), and to insert instead thereof a new Sub-section—

2) With respect to the Western Group the following provision shall have effect: —

Question, "That the words proposed to be left out stand part of the Bill," put, and negatived.

Question proposed, "That the proposed words be there inserted in the Bill."

I beg to move, its an Amendment to the proposed Amendment, in paragraph ( c ), to leave out the words

"and any new class of capital may rank before any existing class of capital."

I do not know whether there is a Law Officer present. I may be right or wrong in my contention, but I consider that a further issue of debenture stock that may rank in front of an existing issue is— must be—wrong, utterly wrong. I shall certainly vote against it. I fought this question in the House some years ago. An attempt was made to allow a company to raise money and put it in front of existing securities. It was carried against me by a small majority in the early hours of the morning. I got it altered in another place. Let me read paragraph ( c ):

Notwithstanding anything in any special Act affecting the Great Western Railway Company, or the holders of any class of loan or share capital in that company, the additional capital of each class shall form part of, and rank pari passu with, the existing capital of that class, and any new class of capital may rank before any existing class of capital.

I do not in the least object to the new capital ranking pari passu with the existing capital, but I object to the new capital being put in front of existing capital. This proposal will affect the rights of an enormous number of people who have invested their money on the understanding that it ranked before anybody else. You are now setting all that aside and putting the new loans in front of the existing capital.

I am afraid that, in the endeavour to be brief, I have not really saved time, and perhaps a little fuller explanation is necessary. In the ordinary form the constituent companies are wound up and their capital is distributed to their shareholders. An exception is made in the case of the Great Western Railway. I have not the precise figures, but I think I am right in saying that the capital of the Great Western Railway Company is over £100,000,000, and the next company which will join the group has capital somewhere within the region of £10,000,000, and there is another company in the group somewhere in the region of £6,000,000. What is desired to be done by this amended Sub-section is to prevent the winding up of the Great Western Railway Company. To wind up that great company and distribute its great capital amongst the shareholders and replace it by the new capital of the grouped companies would be a costly and somewhat vexatious proceeding. The object we have in mind is to secure in the amalgamation that the other constituent companies may be paid in capital of the Great Western Railway Company instead of being paid in the capital as in the other case of the amalgamated companies. That is our desire, and I hope that we have succeeded in carrying it out in these words. The provision is that the scheme —and it will be one which must have from the very nature of things the approval of what I may call the predominant partner, the Great Western Railway Company— shall have full powers of securing that the capitalisation shall be with the least possible disturbance to their existing shareholders, and for that purpose the Clause is drawn widely, but there is no question at all that it would be with the consent of the shareholders concerned in the Great Western Railway Company. That is what is desired.

That involves some reference. The one idea is to protect the shareholders of the Great Western Railway Company from a totally unnecessary upheaval of their capital arrangements by winding up their company and creating a new company with new capital issued to the old shareholders in scrip. What we desire to do is to secure that the Great Western Company, which will have the * controlling interest in the amalgamated capital, shall have the freest possible hand in saying how it will provide that capital. It may be necessary to find some form of words to cover the point raised by the right hon. Baronet without in any way limiting the power of the shareholders, and at the same time to secure the least dislocation of capital arrangements.

I think that the Parliamentary Secretary has made a very good impression as to what this fifth Sub-section seeks to do. The Bill as it left the House on the Second Heading, and as it now stands, provides that the Great Western Railway Company shall be the only constituent company. That seems to be natural in view of the fact that it is the only trunk line in the group. The others are all small railways, the Taff Vale, the Rhymney, the Cardiff and the Barry, and these in point of mileage and capital do not obtain one-tenth of the dimensions of the Great Western Company. The right hon. Gentleman the Member for Peebles (Sir D. Maclean) moved that these particular companies should be constituent companies in the group instead of subsidiary companies. The Great Western Railway Company had no rooted objection to that, although they pointed out that the constituent companies would have all the expense and disturbance involved in winding up the Great Western and re-issuing their stocks to the various classes of capital. The thing was talked over, and at last a friendly agreement was come to, and no one ventured to put any objection. The result of the agreement is the Sub-section which has just been moved. It aims at giving a fair position to the capital of the subsidiary companies, and I think the right hon. Member for Peebles will bear me out when I say that the agreement obtained favour in all parts of the Committee.

My Amendment is still necessary. It does not in any way touch the case raised by my right hon. Friend (Lieut.-Colonel Mildmay) or by the Parliamentary Secretary. The latter says the Sub-section is necessary in order to prevent the winding up of the Great Western Railway Company and the alteration of all their capital, and also that the little companies may be paid in Great Western stock. I have no objection to that—absolutely none. But this Amendment does not do that. What does this Amendment do 1 It says nothing about being allowed to issue additional Stock for certain purposes. It says:

"Notwithstanding anything in any special Act affecting the Great Western Railway Company, or the holders of any class of loan or share capital in that company, the additional capital of each class shall form part of, and rank pari passu with, the existing capital of that class, and any new class of capital may rank before any existing class of capital."

That is the existing class of capital of the Great Western. It cannot be anything else.

It does not matter what is against it. You are paid money, by investors that they should have a first charge, or a given charge, upon the railway. You have no business to put something in front of it. In this case it is absolutely unnecessary. You do not mean to tell me that these small companies would not be glad to have payment in-Great Western debenture stock. Why, then, is it necessary to put in any new Clause that capital may rank before any-existing class 1 I must maintain my Amendment.

The right hon. Gentleman has convinced me that he is absolutely right. To allow a new class of capital in the Great Western to be issued in direct derogation of the statutory rights of existing capital, and seriously prejudicing, it may be, the rights of the holders of that capital, seems contrary to the principles of reason and justice. I cannot understand even the reason for it. I agree that the holders in these small companies would be only too glad to get any debenture or preference stock of the Great Western, ranking pari passu. To empower a company to issue stock which shall override the rights of existing stock seems a monstrous injustice.

I hope the Minister of Transport will give an undertaking that he will bring in some words in order to protect the various interests in the way referred to by the Parliamentary Secretary. We had last night a discussion on an Amendment, and the Home Secretary found a mistake in it. I cannot help thinking something of the kind has happened again, as is easy in the hurry when Clauses are being adjusted. I appeal to the Minister to take this wording back, and bring in wording to protect these debenture and preference holders. In this Clause there is power given to create stock which shall rank in front of the existing stock. That was not the intention expressed by the Parliamentary Secretary.

This Amendment is really put in as the result of an arrange- ment made in Committee upstairs, under which it was agreed that we should endeavour—having provided that there should be several constituent companies in this group—to save the Great Western Railway the great expense of the converting of its securities. This Clause is a Great Western Clause, and it is put forward in redemption of an understanding. I think there is a point in what the right hon. Gentleman has said, and what I would suggest to the House is that in paragraph ( c ) of the Amendment, after the word "may" ["and any new class of capital may"], we should insert the words "with the consent of the majority of the holders of the existing securities" — these words being taken from Sub-section (1) of Clause 12. Clause 12 (1) says "with the consent of the majority of the holders of the existing mortgage securities," and I am proposing to adopt these "words, leaving out, however, the word "mortgage." That, as I see it, would provide for the Great Western the fullest freedom as to the intervention between two stocks, above one and below the other, the stock of some company that they might absorb. It might be better than A, and not so good as B, and it is desirable that they should have that freedom, provided that they get the consent of the majority of the holders of the existing securities.

Would it not be better to say, "With the consent of the majority of the holders of the class of security affected"?

It is very desirable to keep to the words that we have in the Bill if we can, but I am willing to adopt the words, "with the consent of the majority of the holders of the class of security affected," and I am prepared to move that as an Amendment to my Amendment.

That cannot be moved unless the present Amendment to the proposed Amendment be withdrawn.

I should much prefer that my Amendment were accepted, with the effect that the securities would be left untouched, as the law stands at present. The only exception to that is in a case in which the securities are such that, unless the law, were altered, the company would be obliged to go into liquidation, and no one can hold that that is the case with the Great Western Railway Company. I do venture to suggest to my right hon. Friend that a mistake has been made in putting in these words, and I should very much prefer that my Amendment should be accepted, with the understanding that, if there is any exceptional case, it should be put right in another place.

I venture to suggest to my right hon. Friend that his Amendment would really not have the effect he desires, because the preceding paragraph reads:

"or creating new classes of loan or share capital of that company, with such rights, priorities, and conditions…"

That is very wide, and I suggest to my right hon Friend, with deference, that we should put into the next paragraph the qualifying words requiring the consent of the stockholders.

It is a little difficult now, at eleven o'clock, to deal with this question, which is really a very important one, but, on the understanding that in another place some modification may possibly be made, I beg to ask leave to withdraw.

Amendment to the proposed Amendment, by leave, withdrawn.

Amendment made to the proposed Amendment: In paragraph (c), after the word "may" ["and any new class of capital may"], insert the words "with the assent of the majority of holders of the class of security affected."—[ Sir. E. Geddes. ]

Proposed words, as amended, there inserted in the Bill.

11.0 P.M.

Motion made, and Question, "That the further consideration of the Bill, as amended, be now adjourned," put, and agreed to.—[ Sir E. Geddes. ]

Bill, as amended ( in Standing Committee A and in Standing Committee B ), to be further considered upon Monday next.

Private Business

LIVERPOOL CORPORATION BILL [Lords] (By Order)

As Amended, considered.

The Order Paper shows that several hon. Members and myself gave notice of opposition to the Bill. I am glad to say that, after consultation between the Ministry of Health, the Chairman of the Committee which considered the Bill, the representatives of the Corporation and the Members for Liverpool, we have arrived at an agreement which is satisfactory to all Members, So I do not move the Motion of which I had given notice.

There is a series of Promoters' Amendments.

Certain drafting Amendments agreed to.

CLAUSE 23.—(Number of guardians and wards of Parish.)

Subject to the provisions of Section sixty of the Local Government Act, 1894—

(1) The number of elective guardians for the parish on the board of guardians of the union as constituted by this Act shall be fifty-four:

(2) The parish shall for the purposes of the election be divided into fourteen guardians wards having the names respectively set out in the first column hereunder and respectively comprising the areas of the wards for the election of councillors of the city respectively named opposite thereto in the second column hereunder and the numbers of guardians to be respectively elected for the several wards shall be those respectively specified in the third column hereunder:

Amendments made, in Sub-section (1): Leave out the word "fifty-four," and insert instead thereof the word"" seventy-eight."

In Sub-section (2), leave out

and insert instead thereof

CLAUSE 24.—(Number of guardians of certain parishes in Union.)

Subject to the provisions of Section sixty of the Local Government Act, 1894, the number of elective guardians on the board of guardians of the union as constituted by this Act shall for the parish of Bootle be seven and shall be respectively elected for the several wards specified hereunder: —

and shall for each of the parishes of Litherland Seaforth Waterloo and Great Crosby be two.

Amendments made: Leave out the word "seven" ["be seven and"], and insert instead thereof the word "nine"; leave out "1" ["Stanley Ward—1] and insert "2"; leave out "1" ["Knowsley Ward —1"] and insert "2."—( Mr. O'Connor. ]

Other drafting Amendments agreed to.

Ordered, "That Standing Orders 223 and 243 be suspended and that the Bill be now read the Third time."—[ The Chairman of Ways and Means. ]

King's Consent signified.

Bill read the Third time, and passed, with Amendments.

Admiralty Pensions Bill

Order for Second Beading read.

I beg to move "That the Bill be now read a Second time."

The main objects of the Measure I indicated the other night in introducing the Financial Resolution. Of three Clauses into which the Bill is divided, the first, dealing with the commutation of pensions, is the most important and the most urgent. The Admiralty already has power to commute officers' pensions, but, unlike other Departments, it has not power to do so in the case of other ranks. There may be obvious dangers in commutation, but with this safeguard of reserving a minimum amount of pension from commutation—we propose that the minimum should be 2s. a day—and on careful enquiry into the purposes for which commutation is required, there are undoubtedly great advantages in enabling the pensioner to have a capital sum with which to start business. The Jerram Committee, among its recommendations for the welfare of the Naval Service, urged that this power should be given to the Admiralty. The recommendation was welcomed in the service. A very considerable number of men have already sent in applications for commutation and have in some cases been waiting for eighteen months. I am sure these men will be grateful to the House if this privilege can now be extended to them.

The object of the second Clause is to clear up certain anomalies in the law governing the restoration of pensions forfeited for misconduct. Under the Forfeiture Act of 1870 any sentence of hard labour or of imprisonment for twelve months involved automatically the forfeiture of pension. By subsequent Acts and Orders in Council the Admiralty secured the power to restore pensions in whole or in part as far as Naval ratings or Marines were concerned, but it has not at present the power of applying any part of the pension for the benefit of the dependents of men who have been in prison. That power is conferred on the Ministry of Pensions by the War Pensions Act of last year. The object of this part of the Bill, so far as Naval ratings are concerned, is to give the Admiralty this power. In addition to Naval pensioners the Admiralty also administers pensions granted under the Injuries in War (Compensation) Act and the Government War Obligations Acts to certain civilians employed under the Admiralty during the War, for instance, ratings serving on board mercantile fleet auxiliaries. As to those we have no power at present to modify the original Act of 1870. Subsection (3) of Clause 2 of this Bill extends to the Admiralty the same power as is enjoyed by the Ministry of Pensions either of restoring these pensions or of applying them to the benefit of dependants. Legal powers to exercise discretion, in similar cases, do not exist in regard to persons drawing pensions from certain other Departments under the same Act. In the case of the War Office this includes men who were engaged in blockade services, men engaged in looking after remounts, civilians engaged in certain works in France and elsewhere, lady doctors, members of the Queen Mary Army Auxiliary Corps, and the general service section of the V.A.D. In the case of the General Post Office it includes men on cable ships; and, in the case of the Board of Trade, officers and men of the mercantile marine, who come under the Injuries in War (Compensation) Acts. Actual cases of hardship have only arisen in one or two instances, but, I think the House will agree, it is desirable to get rid of the present anomalies and put all classes of pensioners on the same footing.

Clause 3 of the Bill is very clearly explained in the covering Memorandum. Originally, the Coastguard service was composed of men who had not yet reached their pensions, and therefore it was necessary to provide that service in the coastguards counted. The new Coastguard service is a pensioners' service, and the men draw their pay in addition to their pension, and receive a gratuity at the end of their service. Therefore it is necessary to provide that this service shall not count towards a still further pension. Those are the main points in the Bill, and if other minor points are raised I shall be glad to answer them.

I am grateful to my hon. Friend for his very clear exposition of the provisions of this Bill. It is a simple Bill, containing only five Clauses and sixty lines, but it makes reference to at least eleven Statutes, and, therefore, I am glad the hon. Gentleman has given us this explanation. In reference to the first portion of the Bill, he has relieved my mind considerably on the subject of commuted pensions. I have some experience of that kind of thing, and it has shown that the commutation of pensions for seamen and soldiers—and particularly seamen and marines—requires great care and caution. When they come ashore, some of these men seem to think they know all about commercial life. They hear of "a good thing "—as they think—and they commute their pensions and make a mess of it and are stranded for the rest of their lives. I have seen officers reduced to penury and distress through the commutation of their pensions. While there are many instances in which they have been able to invest the money satisfactorily, it is necessary to see that the commutation is properly administered. My hon. Friend informs us this commutation will not be granted except after inquiry and that care will be taken to make certain as to the desirability of the commutation taking place. Regarding Clause 2, in connection with the Forfeiture Act, 1870, I wish to ask if it applies, not only to Admiralty pensions and allowances, but to others. Let me read the Memorandum:

"Clause 2 of the Bill empowers the Admiralty to restore an Admiralty pension which has been forfeited under the Forfeiture Act, 1870, and further to pay or apply any part of the pension which has been restored to or for the benefit of the pensioner's dependants, while he himself is undergoing imprisonment. This power has already been conferred upon the Minister of Pensions by Section 7 of the War Pensions Act, 1920, in regard to pensions administered by him."

This is the point upon which I should like some information—

"Sub-clause 3 of this Clause extends the same power to the Admiralty, War Office, Board of Trade, and General Post Office in regard to grants made by those Departments under the several Injuries in War (Compensation) Acts or the Government War Obligations Acts."

Let us turn to the Bill itself. Subsection (3) of Clause 2 says:

"This section shall apply to any pension, grant, or allowance—

( a ) payable under a scheme framed under the Injuries in War (Compensation) Act, 1914, the Injuries in War (Compensation) Act, 1914 (Session 2), and the Injuries in War (Compensation) Act, 1915; or

( b ) for the payment of which provision is made under the Government War Obligations Acts, 1914 to 1918

as it applies to Admiralty pensions."

I think I am right in understanding that this relates not only to the Admiralty forfeiture cases, but to the War Office, the Board of Trade, and the General Post Office, and it is a very curious thing to introduce important Departments of that kind into this Admiralty Bill. I suggest that in Committee either those words in Sub-section (3) should be explained specifically in a proper way, so that they can be readily understood, or that the title of the Bill should be altered to make it clear that it refers to Admiralty and other pensions. The difficulty otherwise is that anyone trying in the future to find out what the law is with regard to this matter would go to this Bill, or Act, as it would then be, and would not find it very understandable. With regard to the coastguards, under the Act of 1856, time served in the Coastguard Service counted for pensions. Do I understand that the Coastguard force is now purely a pensioner force, and that there is no one in it except pensioners? If so, I want to get an assurance that there is nothing in the Bill which will in any way interfere with the pensions of the men in that Force.

I congratulate the Government on bringing forward one Bill at least of which we on this side can approve. I believe that on the whole it is a very good Bill, but I wish to make three comments upon it. The first is that in the Memorandum it says that the pensioner whose pension is commuted must be left with 2s. a day pension, and that any pension of any amount above that figure can be turned into a capital sum, but when we turn to the Clause there is nothing about that. I should have thought it would be possible for the draftsman to make it clear in the Clause itself. The Memorandum, I believe, is not binding in law, and it is only the Clause that is of importance, and, as my hon. Friend the Member for Central Portsmouth said, this is a matter that ought to be gone about very carefully indeed. The second point is that I cannot understand why, in a Bill which is called Admiralty Pensions you should introduce the Board of Trade, War Office, and General Post Office. I think, as my hon. Friend says, the title is a little misleading, and that ought to be made clear. Whether it was that these other Departments thought the hon. Gentleman would get a better passage for the Bill, if it were taken under his wings, I do not know, but, at any rate, it is a little misleading that the Admiralty should be saddled with the affairs of these other Departments. But I must say that this proposal for giving dependants of persons in prison something to live on is very humane, and I only wonder it was not done years ago.

The third point concerns a matter which I brought to the notice of the hon. Gentleman before, and I would like, if possible, some answer. There is bound to be in the next few years a superfluity of senior officers in the Navy—men who performed excellent service, and for whom, through no fault of their own, there is no work, owing to the naturally reduced Navy and the extra promotions during the War. This is a matter of very great importance, and I do beg my hon. Friend to give it his sympathetic consideration. Inducements should be given to these senior men, who are in excess of the requirements of the Navy, to retire, and, as they have their heads screwed on the right way, there is no real danger in commuting their pensions. The Government have adopted the system of giving a lump sum down to junior officers to leave, and I have had brought to my personal notice—and I exepct my hon. and gallant Friend the Member for Liverpool has knowledge of similar cases —cases of senior men who would like to go if they could get a lump sum down. They see an opening in business, but the pension at their age is all too small, and they hang on. At the present moment it is difficult to employ a number of senior officers. Might I therefore ask my hon. Friend very carefully to consider the granting of the same privilege to senior officers as was granted in 1919–20 to the superfluous junior officers? I can assure him there are quite a number of officers who could fill good openings in civil life if this privilege were granted to them.

Certainly, I will look into that matter; but I ought to explain that the question of gratuities to induce officers to leave the service does not arise on this Bill.

Question put, and agreed to.

Bill read a Second time, and committed to a Standing Committee.

The remaining Orders were read, and postponed.

Whereupon Mr. SPEAKER adjourned the House, without Question put, pursuant to the Order of the House of 26th July.

Adjourned at Twenty - four Minutes before Twelve o'clock.