. Legislative regulation of railway finance in England . ed and paidup shoild be presented before a company made any loans. Thus thefinancial affairs was placed, to a certain extent, under the super-vision of a public officer. first clauses consolidationIn examining these clauses of the^act one cannot help being impressed with the great care which Parliament took in order to make the loan capital of railways a safe investment. Indeed, if these provisions had been conscientiously followed they might have proved effectual to carry cut the intentions of Parliament and to prevent much difficulty w
. Legislative regulation of railway finance in England . ed and paidup shoild be presented before a company made any loans. Thus thefinancial affairs was placed, to a certain extent, under the super-vision of a public officer. first clauses consolidationIn examining these clauses of the^act one cannot help being impressed with the great care which Parliament took in order to make the loan capital of railways a safe investment. Indeed, if these provisions had been conscientiously followed they might have proved effectual to carry cut the intentions of Parliament and to prevent much difficulty which occurred later. It must be remembered that when the aforesaid general act was passed, a. railway mania was raging. This and its subsequent collapse, which took place two years later, furnished a good test of the usefulness of the financial provisions just referred to. Up to 1848 about LI75,000,000 had been invested in railways, of which about £40,000,000, or one-fourth, was raised by loans; and 1. Companies Clauses Act, 1845 (8 V. c. 16) sec. about L20,000,000 was still then required to be borrowed to carryor. the work. On account of the collapse of 1647, exhorbit ratesof interest had to be offered; and not withstanding such induce-ments, some of the best lines could not be completed for want offunds. During the collapse, railway credit was greatly loans were made, were only for short periods. In order to clear off the wreckage of 1847, Parliament in 1850 passed The 3 Abandonment of Railways Act Mto facilitate the abandonment of railways and the dissolution of railway This Act pro-vided that the companies share as well as loan capital should be 4 reduced proportionately with the amount of work ;$Aside from this incidental provision contained in the AbandonmentAct of 1850, nothing was done to alter the rules laid down in theCompanies Clauses Act of 1845 during the period. ■ Even the de-rangements caused by the crisis of 184
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