These laws are to prevent fictitious capitalization and " stock-watering."
The total paid-up railway capital of the United Kingdom amounted, in 1908, to £1,310,533,212, or an average capitalization of £56,476 per route mile, though it should be noted that this total included £196,364,618 of nominal additions through " stock-splitting," &c. Per mile of single track, the capitalization in England and Wales, Scotland, Ireland and the United Kingdom, is shown in Table VIII.
The line was to be constructed in sections of zoo kilometres (125 m.) each, and as the complete plans and drawings of each were presented at the times and in the order specified in the convention, the government was to deliver to the concessionnaires government securities representing the capitalization of the annuity accruing to that section.
(7) Hungary to be entitled to redeem her share of the old Austrian debt (originally bearing interest at 5 and now at 4.2%) at the rate of 4.3 2 5% within the next ten years; if not redeemed within ten years the rate of capitalization to decrease annually by -% until it reaches 4.2%.
In 1905 capitalization (under the factory system) had increased to $102,439,481, and value of products to $137,960,476.