. Legislative regulation of railway finance in England . notes were illegal, and were astonished when it was declared by the select committee of the House of Commons,4 1844, that these loan-notes were absolutely invalid, and that the lenders had no means whatever of enforcing the repayment of their money. The issue of such notes was not merely illegal but actually a breach of the original contract under which the Act of incorporation was obtained. Thus this select committee ot\ Railways felt it highly important to adopt some means to prevent the re- 5 currence of practices so highly objectiona
. Legislative regulation of railway finance in England . notes were illegal, and were astonished when it was declared by the select committee of the House of Commons,4 1844, that these loan-notes were absolutely invalid, and that the lenders had no means whatever of enforcing the repayment of their money. The issue of such notes was not merely illegal but actually a breach of the original contract under which the Act of incorporation was obtained. Thus this select committee ot\ Railways felt it highly important to adopt some means to prevent the re- 5 currence of practices so highly At the same time it was noticed that although the exist-ing transactions were illegal and contrary tothe public policy,they were, nevertheless, of a perfectly bona fide character as 1. Railway Times, April 27, 1844. 2. Ibed. 3. Report of select committee of the House of Commons on Rail-ways, May 24, 1844. Railway Times, June 22, 1844. 4. Fifth Report of Select Committee of the House of Commons, 1844Also see Railway Times, June 22, 1844. 5. ibZ between the borrowers and the lenders. The contracts were enteredinto without a distinct knowledge of the illegality. Moreover,the money so raised was applied for the execution of the workauthorised by Parliament. Therefore, Irk appeared that ignorance^should do considered. i>< With these problems in view, the select committee on Rail- ways after many sittings at which much evidence was taken, recom-mended the suppression of the issue of such illegal securities inthe future. At the same time, it expressed the opinion that in orde^to avoid undue hardship upon investors and the danger of disturbing [ the existing bona fide engagements, certain provisions ought to bemade by Parliament for the purpose of converting these loan notesinto valid securities. Following the recommendations of this committee, Parliamentpassed an act in 1844 to the effect that from and after the pas-sing of the Act any railway company issuing any lo
Size: 1367px × 1828px
Photo credit: © Reading Room 2020 / Alamy / Afripics
License: Licensed
Model Released: No
Keywords: ., bookcentury1900, bookdecade1910, booksubjectra, booksubjecttheses
