. Legislative regulation of railway finance in England . e been entitled to divid- 2 end if no such conversion had taken Parliament, however, failed to make use of the .committee»srecommendation of adopting some distinct nomenclature for theconverted stocks. Neither was any uniform method of procedureadopted to compel all railway companies to report their nominaladditions. An indirect but more effective check against stock-•vatering, however, was adopted in the following year, by theenactment of the Stamp Act in which it was provided that in caseof any nominal increases of the share c
. Legislative regulation of railway finance in England . e been entitled to divid- 2 end if no such conversion had taken Parliament, however, failed to make use of the .committee»srecommendation of adopting some distinct nomenclature for theconverted stocks. Neither was any uniform method of procedureadopted to compel all railway companies to report their nominaladditions. An indirect but more effective check against stock-•vatering, however, was adopted in the following year, by theenactment of the Stamp Act in which it was provided that in caseof any nominal increases of the share capital, an ad valorem dutyof 2s. per £100 should be charged, with a cumulative penaltyfor neglect to render due statement of such increases. Thismeasure has been rigorously enforced. Thus the railway companieshave been compelled under penalty to pay duty on, as well as torender due statements of, all nominal increases to a government 1. Railway Times, June 14, 1890. 2. Sec. 67 of the Midland Act of 1897, quoted by J. Fraser:British Railways, p. office. It may be added that a further check against unnecessarystock-watering was effected by a subsequent enactment in which thestamp duty was increased from 2 to 5 per cent. In this way, the question of stock-watering was disposed of,and the policy for its regulation settled once for all. Ho newdeparture from the policy has been made by Parliament status thus established may be summed up as follows: (1) Railway companies shall have complete freedom to deter-mine their policies and practice in making nominal additions totheir capital, (2) Before such nominal additions are made, the company mustcome to Parliament for power. (3) Bills for such powers are dealt with the same as an-other kind of private bill. (4) Clauses requiring the keeping of a clear record of allnominal additions as distinguished from the paid-up capital areuniformly inserted in such bills before their passage. (5) An ad valorem duty of 5 per cent, i
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