CO129-546-1 Loans for public works 6-1-1934 - 14-8-1934 — Page 37

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revenue which has already paid military contribution.

5. If, therefore, the loan were itself exempted

from military contribution Army Funds would lose the

portion of the contribution corresponding to the amount

just mentioned as paid from general revenue to cover the

railway deficit, so long as a deficit continued. If this

is a correct representation of the facts, the Council see

no reason why this loss should fall on Army Funds. If

and when the railway is paying its way, the provision

that only the net profits are taxable automatically

protects the service of the loan from paying

contributions, and no other protection is necessary.

6.. A further point as to which the Council are

not clear is the following :- From such information as is

available to the Council, it appears, that the sum now

allocated from the proposed new loan for the redemption

of this inscribed stock does not suffice to make up the

difference between the amount of that stock and the

amount at which the sinking fund in connection therewith

at present stands.

7./