9781334347801: Railroad Capitalization

Synopsis

This book analyzes the relationship between capitalization and the performance of railroad companies. It argues that overcapitalization often leads to poor service rather than increased rates, as is commonly assumed. The author traces the evolution of thinking on the subject, from when overcapitalization was thought to be universally bad to the current position that anti-trust regulation is the best method to address the potential negative effects of capitalization. The author delves into the specific actions companies can take to avoid the pitfalls of overcapitalization and examines the role of regulatory commissions in preventing abuses. The book sheds light on a complex issue that has implications for the regulation of other industries.

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