. Legislative regulation of railway finance in England . , without prejudice to their right to sue, require 1 the appointment of a receiver. By these provisions, the debenture stock holders weregiven the power to recover the arrears of their interest eitherby bringing suit in any competent court or by requiring the ap-pointment of receivers. It may be noticed, however, that onlythe interest was secured, and the principal was not mentioned. There was some dissatisfaction over this fact, but it was generally2 conceded that so long as the interest was made sure, the principalwould take care of it
. Legislative regulation of railway finance in England . , without prejudice to their right to sue, require 1 the appointment of a receiver. By these provisions, the debenture stock holders weregiven the power to recover the arrears of their interest eitherby bringing suit in any competent court or by requiring the ap-pointment of receivers. It may be noticed, however, that onlythe interest was secured, and the principal was not mentioned. There was some dissatisfaction over this fact, but it was generally2 conceded that so long as the interest was made sure, the principalwould take care of itself, for what the average investor wanted wasnot so much the possession of his principal but a regular and re-liable income that grew out of the principal. This was especiallytrue when his security was easily marketable. The chief reason why Parliament took such precautions togive great security to the holders of debenture stocks was thatthere was an abundance of money ready for investment and the only 1. 15 V. c. cv. XII. 2. Economist, Feb. 23, thing necessary to induce investors to eome forward was indisput-1 able security. With this point in view, Lord Redesdale in 1856, endeavored to insert a clause in the railway hills of that session, making the railway directors personally liable for any illegal issue of debenture stocks; but this proposition, which if adopted might have prevented much trouble, was killed in the committee2 room. But it must also be noticed that what Parliament did wasfor the protection of the holders of legal securities. If onessecurity was legal, he was safe. ¥o protection was extended tothe holders of illegal securities. Parliament prescribed the rulesgoverning the issue of railway securities, and laid down the prin-ciple that securities issued in violation of these rules were ill-egal and hence not within the protection of law. Per se this doc-trine appeared proper and good. But how were the investors to knowwhich securities were legal and wh
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