frequent and striking instances of such management of corporate affairs for private ends have hitherto occurred in railroading, at the same time that the methods and expedients of modem corporation finance have also first and most widely reached a fair degree of maturity in railroading. It holds out a suggestion as to what may fairly be looked for when corporation finance shall have made itself more thoroughly at home in the " industrials " proper. Indeed, the field of the " industrials " is by no means barren of instances comparable with the maturer and more sagacious railroad financiering.'
The stock market interest of those men who have the management of industrial corporations is a wide and multifarious one. It is not confined
' It nui; be noted, b; the wa;, th&t the qaeetioD of the tumoTer (apolten of on p. 96 above) becomea, under the circumRbuicea of the modem eorporation finance, in great part a question of the inUrval between the purchase and sale of the capital engaged in industry on the one band, and of the magnitade of the discrepancy betneen actual and putatiTe eaming-capacity □□ the other band, rather than a qaea. Uon of the period of the Industrial process and the magnltode of the oaqiut and its price. The formula there shown becomes : — ^pltal /actui^ eamipg-capacity
= putative eamlng-capacitj — actual eamlng^apaetty j. In whlob capital to the amount of the operator's Inrestment to the conoem's secmitiea, the time is the iDlerval between purchase and sale ol the secorities, and the putative eamlDg-^apaclty is taken to exceed tha actual eamlng-capaoltf by an iDdeteiminate frutlon of lb» Ulter.