MISSING LINK IN PRICING: A FAIR RETURN ON INVESTMENT

Assuring an adequate return on investment has always been a problem in railroading--and even defining the adequacy of return has excited constant discussion. A.L. Scott, director and chairman of the finance committee of Burlington Northern, expresses his opinion on the need of an after-tax return of 12% or more to satisfy the needs for a capital-hungry railroad industry. The ICC has stated its goal is an industry return of 6% although it has actually not been higher than 4% in over 20 years. Scott notes that not only is the industry unable to recover the cost of fixed capital but is not even doing this for new capital being committed to the business.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/1586268
• Corporate Authors:

  Simmons-Boardman Publishing Corporation

  508 Birch Street
  Bristol, CT  United States  06010
• Publication Date: 1974-7-29

Media Info

• Pagination: p. 24-25
• Serial:
  • Railway Age
  • Volume: 175
  • Issue Number: 14
  • Publisher: Simmons-Boardman Publishing Corporation
  • ISSN: 0033-8826
  • Serial URL: http://www.railwayage.com

Subject/Index Terms

• TRT Terms: Capital investments; Economic analysis; Freight traffic; Rates; Return on investment
• Uncontrolled Terms: Freight rates
• Subject Areas: Economics; Freight Transportation; Railroads;

Filing Info

• Accession Number: 00080882
• Record Type: Publication
• Files: TRIS
• Created Date: Feb 27 1975 12:00AM