410
proposed Agreement in connection with the Construction & working of the Railway at all, but merely an Agreement under which the Corporation are to subscribe, as purchasers, a certain percentage of the shares, debentures and other securities issued by the Company, which are to be made over to them as fully paid. The Company will therefore be encumbered with shares and liabilities representing no asset whatever.
Regarded from this point of view it is not surprising that the promoters are anxious for a Government guarantee to give their shares and debentures some value, whether the line is ever built or not, or whether it ever pays or not.
I am inclined to think that the proposal is rather impudent and that we should insist on considerable alterations at the end of Clause 1, and on the omission of Clause 3.
If the Corporation is prepared to look to the profits of the railway itself and not to the flotation of the company, the question of a guarantee by the Hong Kong Government can be considered. To present many difficulties and will require many safeguards, but, at this stage, it is not worth while to consider these.
1914.
Considering the status of the persons included in this frank bid for promoting profits is surprising.
îL. 1/5.
410
profoced Apeement in with an Apeement In the Construction & working of ther "Railway at all, but merely
which the Corporation
a
are
are under
to froute
Company receivity, as prouchers, a
Achain percentage fall
the shares, debentures and other securities issu by the Company, which are to be made them as fully paid. Hee Company will therefice chart Encumbered with shares and a liabilities representer no asset whatever.
dirul
Regarded frame this faint of mind it
Fundarstand the prevalers
vi Laty
aussiet for a Government guarantee
to their bares and
debentures acutaine value whether
W
bit will five
the line wver pays
pays a feny
am inclined Pluck,
cest and
an the proposal un
is even built
thanks, whether the time is cu
o cust.
This rather impudent attempt at
of the Corporation and
I think
и......
should insist on consicluable altuations at the end of clause I
the omission of clause 3.
and on
If the Corporation is prepared to look faits profits to the recess ofther railway and not to the Flotation the company, the question of a guarantee Kong
whee by the Harry Kranz fort can be considered. To presents cuary difficulties and will require many
tafeguards, but, at this shape, it
is wit worth while to consider these.
hito
1914.
Considering for promoter's profits is supinining.
the status of the persons incluck
this frank
bid
Росия.
as
suqquled.
îL. 1/5.
promoting inspirer
me with grace divis
No comments yet.
Private notes are available after approval.