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 statement of assets in which the said freeholds and leaseholds are jumbled up with the machinery and plant under one heading, so that it is not possible to tell even what is the balance-sheet value of the property specifically charged. And even if we knew that, the price that would be secured by a sale, at a time when the company was in difficulties, is still a matter of surmise. As to the "first floating charge" on all the assets, with a pledge that the Board will not put any charge ahead of it, except if necessary for "advances in the ordinary course of business"—and some such phrase is often found when debentures are issued—this protection is not a very sure shield for holders, since advances in the ordinary course of business would be more than likely, if the enterprise were straitened for funds, to be on a considerable scale.

An additional protection is secured for industrial debenture holders by the appointment of trustees to watch over their interest. The efficiency of their vigilance, however, is likely to be impaired if, as often happens, one or more of the trustees is also a member of the Board. If all goes well there is no objection, because the trustees only become important when all is not well; then, the interests of the creditors and those of the shareholders are likely