Whatever has been urged against the proposed Nickel Plate merger, charges of "watered stock" or inflated capitalization have been conspicuous for their absence. In 1924, the five constituent properties (present Nickel Plate, Chesapeake & Ohio, Erie, Pere Marquette and Hocking Valley) showed a combined net income of $34,937,052. This is sufficient to take care of the 6% dividend on the 1,317,150 proposed shares of preferred, and then amount to $17.93 a share on the $150,753,522 of proposed common stock. In a similar way, the earnings of the constituent roads for 1923 would amount...
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