Example: A great district bank broke. The shares of a great district
railway went down thirty per cent. Hope bade his employer and pupil
observe that this was rank delusion, the dividends of the railway were
not lowered one per cent. by the failure of that bank, nor could they be:
the shareholders of the bank had shares in the railway, and were
compelled to force them on the market; hence the fall in the shares.
"But," said Hope, "those depreciated shares are now in the hands of men
who can hold them, and will, too, until they return from this ridiculous
85 to their normal value, which is from 105 to 115. Invest every shilling
you have got; I shall." Bartley invested L30,000, and cleared twenty per
cent. in three months.
Example 2: There was a terrible accident on another railway, and part of
the line broken up. Vast repairs needed. Shares fell twenty per cent.
"Out of proportion," said Hope. "The sum for repairs will not deduct
from the dividends one-tenth of the annual sum represented by the fall,
and, in three months, fear of another such disaster will not keep a
single man, woman, child, bullock, pig, or coal truck off that line.
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