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PUBLIC RECORD OFFICE

19

Reference :-

།།།། །། ............C.O. 885

14 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

2

We have taken the matter into our consideration, and, in obedience to your commands. have the honour to

Report-

long as

1. THAT Mr. Johnstone can retain his seat in the Executive Council of the Colony, The Ministry desire that he should retain his seat there, and, under these circumstances, we can see no objection to his doing so, He holds office as a member of the Executive Council during the Queen's pleasure, and there is no occasion for his removal so his presence on the Council is desired by the Ministry. Different considerations altogether would arise if he had resigned his post as Minister in consequence of political differences between himself and his colleagues, or, in the case of members of an outgoing Ministry who have been replaced by their political opponents.

2. Mr. Johnstone is not, in our opinion, a member of the Government. the Executive Council does not make him a member of the Government, and we think His seat in that only Ministers are such niembers. The Constitution of Natal makes no provision for Ministers without a portfolio, and we do not think that the practice of attempting to create such Ministers should be introduced.

3. It is in accordance with Constitutional practice that Mr. Johnstone should be summoned to attend meetings of the Executive Council so long as he remains a member of that body.

It would not be in accordance with Constitutional practice that Mr. Johnstone should be summoned to attend meetings of Ministers. The Ministry may, of course, consult Mr. Johnstone as they please, but only Ministers should be regularly summoned to the Cabinet.

4. We laave nothing further to add.

The Right Hon. J. Chamberlain, M.P.,

&c..

&c..

;

&.

We have, &c.,

RICHARD E. WEBSTER.

ROBERT B. FINLAY.

12776.

SIR.

No. 211.

(-JAMAICA, )

LAW OFFICERS TO COLONIAL OFFICE.

Boyal Courts of Justice,

18th May, 1899.

We were honoured with your commands signified in Mr. Wingfield's letter of the 4th instant, stating that he was directed to request that we would favour you, on behalf of the Government of Jamaica, with our opinion upon a question which had arisen as to the extent of the liability of that Government to the holders of First Mortgage Bonds of the Jamaica Railway Company under a Colonial Law entitled the Jamaica Railway Company's Law, 1889, and the Agreement and Supplemental Agreement' which formed the Schedule to that Law.

That Mr. Wingfield was to direct our attention particularly to Sections 5, 42 to 54, and 150 to`152 of the Law, and to Clauses 9, 13, 20, and 22 of the Agreement and to the Supplemental Agreement.

That in pursuance of the Law the Railway Company issued through Trustees, as provided by clauses 9 and 10 of the Agreement. First Mortgage Bonds hearing interest at 1 per cent. to the amount of £1,500,000, and executed a mortgage of the Railway and its extensions and the property connected therewith or belonging thereto to Trustees to secure the

payment of the principal and interest of the Bonuls as provided by Section 49 of the Law and Clause 20 of the Agreement.

That a form of the Bond was enclosed for our information. That it would be seen that they were repayable at Kingston, Jamaica, or in London on the 1st of January, 1945. That the Company having made default for a period exceeding one year in payment of the interest on the First Mortgage Bouds, the Trustees of the Mortgage Deed called upon the Governor to take possession of the Railway, and that, on his declining to do they themselves took possession, and were still in possession of the Railway and were working it under Section 52 of the Law..

So,

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That the Trustees, in accordance with a resolution passed by the Bondholders under Section 53 of the Law, presented a Petition under the saine Section to the Supreme Court of Jamaica for the winding up of the Company, and that on the 24th January, 1899, the Fourt ordered the Company to be wound up.

That by Section 152 of the Law it was provided that, on the winding up of the Company, and after the taking of the account required by Section 151, the Court shall decree that the Government of Jamaien do allot to each First Mortgage Bondholder, whose Bond has not been redeemed, Jamaica Government Inscribed Stock bearing interest at 33 per cent, at the rate of £100 of each £100 Bond—such being in accordance with Clause 23 of the Agreement.

That the question which now arose was as to the manner in which the Jamaica Government must fulfil the obligation thus imposed upon it. That that Government contended that, in the absence of any express provision in the Law or in the Agreement as to the place where the Inscribed Stock was to be issued, or as to the period for its redemption, they were entitled at their option to issue it either in London or in the Colony, and to fix whatever period they thought proper for its redemption, and that they had informed the Trustees that they proposed to issue local. Inscribed Stock in Jamaica with a currency of five years.

That the Bondholders, it was understood, contended that they were entitled to the issue of Inscribed Stock registered in London, and having a currency equal to that of the First Mortgage Bonds of the Railway Company.

That there were two Jamaica Laws under which Inscribed Stock could be issued, viz., the Inscribed Stock Law, 1885, which provided for the issue of Inscribed Stock in London in accordance with the Colonial Stock Act, 1877, and the Local Inscribed Stock Law, 1891 (amended by the Local Inscribed Stock Law, 1891, Amendment Law, 1894), which provided for the issue in the Colony of Jannaica Inscribed Stock.

That it would be observed that both those Laws authorised the creation and issue of Inscribed Stork for the purpose of raising sums of money which the Governor might

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