9781334790287: Railroad Capitalization

Synopsis

This book analyzes the impact of railroad capitalization on rates and service. The author examines how overcapitalization influences a company's financial structure and its ability to secure credit, ultimately affecting the quality of service and the level of transportation charges. The author delves into the historical context of railroad regulation, exploring the conflicting views on the relationship between capitalization and rates. The book also assesses the impact of capitalization on the rate of return that companies are allowed to earn, highlighting the tension between ensuring fair compensation for investors and maintaining affordable rates for consumers. By providing a comprehensive analysis of these issues, this book offers valuable insights into the complex relationship between finance and public policy in the railroad industry.

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