STOCK EXCHANGE AND OTHERS JOIN FIGHT
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FOR the first time in its history, the Couhcil of the Stock Exchange has protested to the Government against thc terms of compensation to be paid for the transfer of property to a nationalized sundertaking. On December 12 the Council sent a memorandum to the Government. declaring that the proposed basis of compensation to railway stockholders was unfair, inequitable and irrational.
The memorandum pointed out that "Stock Exchange quotations are not related directly to the value of a company's assets or to the amount of its profits. and, consequently, these quotations, no matter what dates may be chosen for reference, cannot form a fair and equitable, or a rational, basis for compensation."
It was also stated that "the only fair and equitable method of arriving at a proper basis for compensation is, failing an agreement between the parties. arbitration."
Following this action. the Investment Protection Committee of the British Assurance Association and the Association of Investment Trusts sent a strong protest to Mr. A. Barnes, Minister of Transport. They deplored the Government's high-handed attitude, and said that "whatever principles may be used [in fixing compensation], the owners are properly entitled to be consulted, and in default of an agreement, to have those principles and their outcome in terms of money submitted to an independent tri