Mark:
It does appear that Matt Rose did get the investment done, based on what I have recently read. In that case…he is a LEADER. It also appears that investment was just in time, based on the growth.
I wish I were going to be downtown on Saturday, but my son has a basketball game…and this Indiana. Sounds like a good time.
ed
The economy is relentlessly moving to smaller, higher value products delivered faster. If heavy rail can’t or won’t adapt they will forfeit shipment of almost all future products to trucks and will only be able to compete with river barges.
Investing capital into the firm instead of paying it to stockholders as dividends is becoming more common in a lot of other businesses besides railroads. Some of this is fallout from the leveraged buyout binge of the 1980’s, in which the mantra was maximizing shareholder value at that moment. It wasn’t always good for the firm in the long run (see TWA) but the courts have ruled that the interests of the shareholders are paramount.
Mark:: I was trying to show that comparison of steam vs diesel is difficult outside the box as it is inside. The performance of same model steam engine is a function of many factors including the fuel used. As I pointed out all coals are not the same, so you will require more tons of low grade coal to move the same weight over the same track than if you used a high grade coal. The ton miles moved per ton of coal will vary with the grade selected. It is a function of energy content of the fuel used. Nitro methane has a lot more power than traditional gasoline. Just ask any NASCAR affinio.
*** Watkins