Clause 2 of the Bill provided that six months after the passing of the Act all the property of the railway companies and the railway clearing houses shall vest in the Minister without any formal conveyance being necessary, including those canals which are owned by railway companies as part of their undertakings. It was proposed under Clause 3 that the purchase shall be carried through by the issue to the railway companies stock and shareholders direct, on the surrender for cancellation of the railway stock and share certificates which they hold, of a specially created Government railway stock, charged on the State railway undertaking and the Consolidated Fund, which shall bear such a rate of interest as would enable it at the time of issue to be realised at par. It was further suggested that the purchase price shall be calculated on the basis of the pre-war market price of the existing railway securities, but be subject to a reduction proportionate to the amount by which securities generally have depreciated in value in consequence of the war, following the policy which the Liquor Trade Finance Committee indicated as being proper if the State purchased the liquor interest.
Figures are developed which show that the pre-war value of stocks issued prior to January 1st, 1914 and a value at mean prices ruling in 1917 of stocks issued since December 31st, 1913, came to approximately £1,111,126,000, which sum, subject to a depreciation reduction, calculated at 25 per cent., would be £836,750,500. A suggested new stock equal to that amount would have to be provided, in addition to a liability of £12,102,900 in respect to various loans contracted by the companies, making the total capital provision £848,853,400. These were calculations subject to error, but Sir William Plender has adduced exact figures which show the net capital (including loans) issued by the companies at December 31st, 1913, to be £1,120,867,965. Clause 4 provides for the railway companies stocks and shares ceasing to bear interest and dividend from the date of the transfer, from which date the new stock would carry interest Clause 5 provides for the redemption of the stock at par within a period of sixty years. Clauses 6 to 12 deal with
