. Legislative regulation of railway finance in England . s etc., of the company as among themselves for raising moneyby pre-preference stocks. Considerable protection was afforded theholders of the different classes of securities which might be af-fected by such schemes, through the requirement of the consent ofthree-fourths in value of each class of such affected securities,before a scheme could be made. Moreover, the scheme must first ofall be filed in the court of chancery; and after hearing the direct-ors, creditors or other parties whom the court might deem entitledto be heard and on bein
. Legislative regulation of railway finance in England . s etc., of the company as among themselves for raising moneyby pre-preference stocks. Considerable protection was afforded theholders of the different classes of securities which might be af-fected by such schemes, through the requirement of the consent ofthree-fourths in value of each class of such affected securities,before a scheme could be made. Moreover, the scheme must first ofall be filed in the court of chancery; and after hearing the direct-ors, creditors or other parties whom the court might deem entitledto be heard and on being satisfied with the nature of the scheme,the court might confirm it. Notice concerning both the filing as well as the confirmation of the scheme must be punlished in the3 gazette. 1. The Railway Companies Act, 1868, 31 & 32 V. c. 79. This Actwas enacted for the only purpose of extending the time-limit to 1870. 2. Railway Companies Act, 1875, 38 & 39 V. c. 31. 3. For details, see The Railway Companies Act, 1867, 30 & 31, 127, ss. Besides the provision prohibiting the seizure cf the roll-ing stock, and that for the creation of pre-preference stocks, theRailway Companies Act of 1867 contained a number of other importantclauses governing the loan capital of railways. In the first placeit provided that, except the claim of the rentcharges and lease,all money borrowed or to be borrowed by a company cm mortgage orbond or debenture stock under the provisions of any Act authorizingthe borrowing thereof shall have priority against the company and thfcproperty from time to time of the company over all other claims on account of any debts incurred or engagements entered into by them 1 after the passing of this Act. Thus by this clause, the holdersof debenture stocks were clothed with an indisputable claim ofpriority against the company over the holders of Lloyds bonds andother irregular securities. This measure was certainly urgentlyneeded for improving the desirability of rai
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