. Legislative regulation of railway finance in England . the ov/ners of the property in general. Swind-ling schemes were also floated through the instrumentality of thesebondt to coerce some existing companies to purchase or lease atoutrageous prices. Moreover, the employment of the device tended to deceivethe investing public. With the current conception that the borrow-ing powers of railways were strictly limited, investors were se-duced into a belief that the work was so far completed with moneyraised in accordance with the requirements of the acts of Parlia-ment; while in reality their lat
. Legislative regulation of railway finance in England . the ov/ners of the property in general. Swind-ling schemes were also floated through the instrumentality of thesebondt to coerce some existing companies to purchase or lease atoutrageous prices. Moreover, the employment of the device tended to deceivethe investing public. With the current conception that the borrow-ing powers of railways were strictly limited, investors were se-duced into a belief that the work was so far completed with moneyraised in accordance with the requirements of the acts of Parlia-ment; while in reality their later investments instead of beingapplied to further prosecution of the work, had to be diverted to the payment of debts of which these new subscribers (the only * if, subscribers^for that matter) were ignorant. Railway Times, December 15, (f9. Evidence before select committee on railway borrowing -oowers 1864 p. 35. * ° ; » Evidence before select committee on railway bor^owin^ cowers 1864, p. 19. - - - * ^(,4,. Railway Times, December 15, On the ■ other hand it was contended that the complaint aga-inst Lloyds bonds that they represented a violation of theborrowing powers of the company, was unfounded. These bonds couldbe^violation of the borrowing powers only when they were issued inexcess of the borrowing powers of the company; but it was onlyoccasionally that they were issued in excess of such borrowingpowers. But this argument neglected the fact that railwaycompanies could violate the law without exceeding the limit oftheir borrowing powers. The companies were authorized to raiseso much money on shares and so much on loans. The latter/privilegewas not to be resorted to until the whole of the former had beensubscribed and one-half of its total amount paid up. Some companies, however, whose undertaking were of/)an unpromising character thatcould they .neither secure subscriptions nor make palls, and who^sjborrowing powers consequently did not materaliga legally
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