in the way of an increment of good-will belonging 10 the new corporation as such ; ' and the whole is then represented, approximately, by the common stock issued. The nominal capital of the concerns merged (in good part based on capitalized goodwill) is aggregated, after an appraisement which commonly equalizes the proportion of each by increasing the nominal shares of all. This aggregate is covered with common and preferred stock, chiefly preferred, which is a class of debentures issued under the form of capital. The stock, common and preferred, goes to the owners of the concerns merged, and to the promoter and the financial agent, as indicated above. In case bonds are issued, these likewise go to the former owners, in so far as they do not replace outstanding liabilities of the concerns merged.
" Capital " in the enlightened modem business usage means " capitalized presumptive eamingcapacity," and in this capitalization is comprised the usufruct of whatever credit extension the given business concern's industrial equipment and good-will will support.* By consequence the effectual capitalization (shown by the market quotations) as contrasted with the nominal capital (shown by the par value of the stock of all de-
' Report of Ike Induitrial Oommitiion, vol. L (Teslimony of Dos Pknos) p. 1170 1 vol. XIII. (C. B. Flint) p. 48. Teatlmou; to the e efFect recnra elsewhere in Uie BeporL 8ae p. 12&, n. I ■bore. ■ 8m Chapter VL below.