. Legislative regulation of railway finance in England . prohibit the transfer of shares in the interim. To this objection it was retorted that a call once madewould form a debt, and hence should be settled first. It wasfurther urged that the adoption of the clause would put an end tothe extremely harmful practice of railway speculation which wasvery common at the time. These speculators, it was pointed out,would often enter into engagements without the least probabilityof their ever being able to meet them; and when they became deeplyinvolved for calls, they would shake off their responsibili
. Legislative regulation of railway finance in England . prohibit the transfer of shares in the interim. To this objection it was retorted that a call once madewould form a debt, and hence should be settled first. It wasfurther urged that the adoption of the clause would put an end tothe extremely harmful practice of railway speculation which wasvery common at the time. These speculators, it was pointed out,would often enter into engagements without the least probabilityof their ever being able to meet them; and when they became deeplyinvolved for calls, they would shake off their responsibility bytransferrins their shares to men of straw. Thus after considerablediscussion, the clause v/as agreed to. Further provisions, however, were made in the early specialacts, to the effect that transfers of shares and stocks should bemade by deed and should be registered in the registers of thecompanies concerned, and that until such registration was made, theseller of the share should remain liable for all the calls and Id. Hansard, vol. 77, p. 929. 1. the purchaser should have no part or share of the profits of the undertaking, nor any voting power in respect of such transferred15 shares. Forms of certificates of both shares and transfers of shares were also prescribed. So far so good; but Parliament seemed to have failed at the most important point. It did net stipulate the time within which such registration should be executed. When the prospects of a company were good, the proviso that failure to register would deprive the purchaser of his proprietary privileges was sufficient to insure proper expeditious registration, but when the prospectsa of company were bad, it was entirely differentia^ Consequently,purchasers of railway shares often wculd hold the transfer in theirpossession so long as it suited their convenience; the seller ofthose shares having no means of compelling the purchasers to re-gister the share, would remain always liable for the payment ofthe calls. The
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