, 1874-11-21


guarantee is to m and how long it ID
t. last, namely from the Factories coming
into operation and for 90 years ; but it doeb
not say what is to be done in the event of the
Factories breaking down after q few years
if the Colonial Treasury should then hare
to continue paying those $50, 900 annually.
Next, he would observe, that he could not
see how any one could take the Colonial Tres
sury's guarantee for 20 years, as long as we
use all that we get in and more besides.
The GOUernor would first observe that the
guarantee could be for the interest on a larger
capital, even one and a half million dollars;
and, next, be would state that it is provided
that The guarantee shall n / ommenc be-
fore the business comes into operation, in order
to secure that tie Public does not give
its support except the general Public is bene-
fitted by the enterprise. In the event of the
Company becoming unable to pay, and having
to stop, then he felt inclined to suppose it as a
matter Of course that the guarantee stops to;
a point which he, however, would leave to
legal members of this Council 10 discuss. In
the laws about Railroads in Denmark there is d
clause providing that the Government shall
have a right to take over the whole BUSINESS
in the event of a failure or such like, and on
certain conditions. This he did not believe
could be applicable here, as it is, moreover,
an old experience that Government or Public
industries are not recommendable.--
The Chairman would, as the Vicechairman
is absent, if no objections be made, from the
Chair make a few remarks on the questions
now raised. In reference to the first point
advanced by the honorable 1st Member for
Frederiksted (Sarauw) whether the stipulations
Of the Draft would apply to other parties than
associations or a Company, he would say that
if it were intended so, BIO would not recon-
mend the Draft, as such an enterprise by an
individual party would not be entitled to or
deserving of public support the advantages
are now proposed because a general benefit is
expected TO the Island, and in the case of q
single individual, it would only be his own indi-
vidual benefit that would be served. But such
a case would be rare and can therefore be left
out of view.-As regards the other point, whe-
Their the guarantee is to continue if the Factory
should come to a stop, that must depend on the
causes that have led to the stoppage. If the
Company should be perfectly solvent, but the
Factory cease because some other method OF
manufacture was found preferable, the effects
of the Establishment would have to be wound
up and the shareholders satisfied for their
claims. But If the Company had to stop opera
tons because of untOward and unfavOurable
circumstances rendering it impossiable to con-
tinue The business, it would then be just there
that the guarantee would be apple able, then
the Colonial Treasury would have to make
good the shareholders the interest of 6 D. CT.
We would be sure not to get shareholders to
risk their capital, unless the guarantee be appli-
cable in such an event, or otherwise the qua
rantee would not be of much import to them.
But that should not be an objection to giving
the guarantee, in fact it should never be given
unless We are quite confident that no subven-
ton from the Colonial Treasury will be want
ed if Central Factories here could not give 6
p. CT. interest, it would not be worth to estab-
liSh them. He felt sure that Central Factories
would pay that and more. But, the guarantee
must be there to reassure and encourage share
holders, as it could not be expected that people
outside of the community should be equally
as convinced of the Reliability of Factories
here, as we here may be. -
The President would state, that as His Ex.
c%ellency the Governor himself was present at
these discussions, it had not been his intention
to take part in the debate but the questions
raised by the honorable 1st Member for Frede.
riksted (Sarauw) being more of a legal turn, he
would beg leave to make a few short observa-
tons on those points.-The honorable Member
had asked, whether the provisions of the Draft
would apply only to the case of the establish
ment of Central Factories by a joint Stock
Company, or whether the same privileges would