APPENDIX III. 



THE DEMERARA RAILWAY COMMITTEE OF COMBINED 

 COURT. 



Chairman's Suggested Scheme of Government Control. 



The suggested Government Control Scheme' in connection with the 

 Demerara Railway prepared by the Hon. J. J. Nunan, K.C., Chairman 

 (14th June, 1918), is as follows : — 



1. The Company to submit the question of its suitable recapitaliza- 

 tion to a Commission consisting of equal numbers of representatives of 

 the Colony and the Company. This Commission would be assisted by 

 actuarial and engineering experts in railway valuation. 



On the adoption of its report the Company (a) to take the necessary 

 legal steps to reduce the capital to the amount advised, consolidating its 

 various classes of shares, or, (b) if its shareholders prefer, will leave the 

 present form of capitalization untouched but will treat the calculated 

 amount as its capital for the Government's purposes. 



2. The Government to undertake during the statutory duration of 

 the present subsidy in lieu of the subsidy to guarantee say four or four 

 and a half per cent, on the reduced capital or calculated amount. 



