16 
the date of investment the income may he 
regarded as safe. 
2.—The safety of income derived from 
Ordinary stocks and shares depends upon 
the amount of surplus revenue remaining 
after satisfying all prior charges and paying 
a dividend on the Ordinary stock. Such 
surplus is either carried forward to the 
next dividend period or credited to the 
company’s reserve fund. 
But when calculating the dividend proba 
bilities of Ordinary and Deferred Ordinary 
capital, which rank for dividend after satisfying 
all prior charges, it must be remembered that 
such calculations are exceedingly hazardous 
and partake somewhat of the nature of 
prophecy. Some companies after paying 
regular dividends for many years have had 
their career of prosperity brought to a sudden 
end through some trade dislocation, through 
some change in the national habits of life, 
through an increase in competition, or through 
some other event which it was impossible to 
foresee. Then, again, other companies after a 
period of barren years, during which they 
have not distributed any dividend among their 
shareholders, have suddenly opened up a new 
avenue of trade, and consequently have 
developed into regular dividend payers. But