share in the capitaUzation of the newly organized concern. Much of the increment of capital, or capitaUzation, that goes to tiie promoter is scarcely distinguishable from an increase of the liabilities of the new corporation (e.p. preferred stock); and the remainder [e.g. common stock) has also some of the characteristics of a credit uistrument. It is worth noting that the cost of reorganization, including the bonus of the promoter and the financial agent, is, in the common run of cases, added to the capitalization ; that is to say, as near as this class of transactions may be spoken of in terms borrowed from the old-fashioned business terminology, what answers to the "interest" due the creditor on the credit extension involved is incorporated in the " capital " of the debtor, without circumlocution or faltering.'
The line between credit and capital, or between debt and property, in the values handled throughout these strategic operations of coalition, remains somewhat uncertain. Indeed, the old-fashioned concepts of "debt" and "property," or "liabilities" and "assets," are not fairly applicable to the facts of the case — except, of course, in the way of a technical legal distinction. The old-fashioned law and legal presumptions and the new-faahioned facts
' RepiiTt of the Inituitrial CommUiion, vol. I, (Teatimony of W. H. Moore) pp. KflO-963, (W. E. ReiB) p. B49. (Gates) p. 1032 ; vol. II. <T. L. Greene) p. 491 ; vol. XIU. p, vlll, with o moDy. See also Cliapl«r VL below.