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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  probabilities ­
  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