The price of railroad stock, for example, is not
regulated, either by its original cost or by the present intrinsic
worth of the property it represents, but by the dividend it pays and by
the condition and durability of the railroad. For any other use than as
a railroad the property of the road is of course comparatively
worthless, but that consideration has no effect upon its value.
"The case is entirely the same with the property of this Association. As
long as it is able, in the use and under the management of the
Association, to pay the stipulated interest--five per cent per annum--
upon the stock shares by which it is represented, so long those stock
shares will be worth par, whatever may be the nominal cost of the
property, or its value for any other purposes than those of the
Association.
"In accordance with these views and for other considerations which we
shall hereafter allude to, this Direction is altogether of opinion that
the results of this year's industry ought to be divided irrespective of
the results of former years, and certificates of stock issued to those
persons who are entitled to such dividends.
"To some persons it may perhaps seem remarkable that a dividend should
be declared when the Association is so much in want of ready money as
at present, but a little reflection will show anyone that it is a
perfectly legitimate proceeding.
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