. Legislative regulation of railway finance in England . e StockExchange Committee and of prominent members of the London andScottish banking fraternity. A remarkable phalanx of opinionwas obtained. One very striking feature of the evidence on the question of stock-watering was that not one of the witnesses thought the practice good in itself. Even those who appeared in behalf of end on the preferred stock should be at the rate of 4 per cent,non^cumulative, and that the remainder of the net profitswould go to the deferred ordinary stock. The voting powerswere to remain as before, as if the spl
. Legislative regulation of railway finance in England . e StockExchange Committee and of prominent members of the London andScottish banking fraternity. A remarkable phalanx of opinionwas obtained. One very striking feature of the evidence on the question of stock-watering was that not one of the witnesses thought the practice good in itself. Even those who appeared in behalf of end on the preferred stock should be at the rate of 4 per cent,non^cumulative, and that the remainder of the net profitswould go to the deferred ordinary stock. The voting powerswere to remain as before, as if the splitting or duplicatinghad not taken place. See Railway Times, May 17, 1890 andtestimony of the representative of the L. & S. W. before theSelect Committee of that year. 2. (Previous page) Railway Times, March 22, 1890 and June 21, 1S90, p. 784. 3. (Previous page) Select Committee of the House of Commons onstock conversion, 1890, hereafter called select committee of1890. 1. Reoort of Select Committee© on the conversion of raxlvray stocks1890, p. the railways did not attempt to justify it on its own merits. Onthe other hand, all the witnesses agreed that in principle stock-watering should be avoided. But the railway rejr esentatives claimed that if the oractice were an evil, it was a necessar; one, 1 since if they did not do it themselves,the conversion companieswere going to do it for them. The second question upon which much discussion took placewas how to ameliorate the anomalies of this necessary evil. Whatwas elicited upon this question was enlightening. The Board ofTrade2was of the opinion that if the freedom of stock-watering wereat all to he generally conceded, it was most important that theyshould retain a record of the actually paid-up capital as distin-guished from the nominal addition. The position of that Boardwas to leave railway shareholders to duplicate, triplieate, or togive any name or units to their capital for the purpose of buyingand selling that suited
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