. Legislative regulation of railway finance in England . rly acts re-quiring the registration of the purchase and transfer of railwaysecurities. It was felt that unless registration was made a conditio]] of the validity of such securities, the provision would remain a dead_ , , TT the of letter. Hence, came ^provision 1845, making it necessary to registerall transfers in order to render the company in any wise responsibleto the transferee. Thus from the time Parliament began to prescribe the limit - ... , . system of of railway borrowing powers, it adopted: this Registration as a means of secu
. Legislative regulation of railway finance in England . rly acts re-quiring the registration of the purchase and transfer of railwaysecurities. It was felt that unless registration was made a conditio]] of the validity of such securities, the provision would remain a dead_ , , TT the of letter. Hence, came ^provision 1845, making it necessary to registerall transfers in order to render the company in any wise responsibleto the transferee. Thus from the time Parliament began to prescribe the limit - ... , . system of of railway borrowing powers, it adopted: this Registration as a means of securing the observance of the same. It deemed that since all securities were registered in the companies registers and since such registers were open to public inspection, there would be little chance of companies exceeding the limit of their borrowing powers without being at once detected. But it must be noticed what Parliament apparently failed to emphasize, that although the manner of registration w&6 thrashed out with much precision, the execution. of such registration was left entirely in the hands of the to 1863, out side of occasional agitations, practically noeffort had been made to modify these provisions* The general opin-ion was that the registration done by the companies themselves was sufficient to prevent irregularities. The public relied, and justly 1 in ordinary cases, on the integrity of the companies. Unfortunately,however, in some cases this reliance was ill-founded. Many companiesmade so little use of registration that they were not aware of the 2 exact limits of their borrowing powers, as prescribed by Parliament; 3 and many others purposely exceeded their limits in borrowing. In- 4 deed, the practice of overborrowing, as remarked the Earl of Donong, actually reached the stage not only of illegality but of fraud. The public were told that Parliament had put a limit to the borrowing powers of railway companies, but they soon found out that under
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