intangible assets assigned the owners on account of a presumed increase of eamlng-capacity due to the coalition. This element of good-will due to coalition may be called co. Further there Is added the bonus ot the promoter, taken aa a block of slock in the new capitalization, pro. Hence P',.(cap')=Ki(cap + i) **['■, (cap + co + pro). K, (pro) •> (7. (cap' -cap- CO) =■ if. (a - co) is evidently a secure gain to the promoter of C.(A - co), which is a traction ot the effective value I7.(cap + A). This is saved by him in the eapitallied form. The aooount of the lormer owners ot the properties will then stand aa tollowa :
of good-wni; it is difficult to handle under any other, more tangible, conception. It may be difficult to standardize, fund, and capitalize these unstable but highly efficient factors of business enterprise; but the successful capitalization of good-will and credit extensions in the case of the modern industrial corporations argues that this difficulty should not be insurmountable in case an urgent need, — that is to say, the prospect of a profitably vendible result, — should press for a formal capitalization of these peculiar elements of business wealth. There can be no question, e.g.j but that the good-will and large solvency belongs ing to such a firm as J. P. Morgan and Company for the purposes of this class of business enterprLse are an extremely valuable and substantial asset, aa is also, and more unequivocally, the good-will of the head of that firm. These intangible assets, immaterial goods, should, in all consistency, be reduced to standard units, funded, issued as common stock, and so added to the statistical aggregate of the country's capitalized wealth.
It is safe to affirm that this good-will of the great reorganizer has in some measure entered in capitalized form into the common stock of the