Business & Finance: Preferred Plan

"The existence of a sound and adequate capital structure underlies and conditions a railroad's prosperity. To be sound, a financial structure must hold fixed charges to a figure which clearly should be earned in times of depression. To be adequate, it must afford means of securing new capital whenever needed, in whatever amounts required, on advantageous terms."

This nugget of railroad wisdom appeared last week in a letter to the contented stockholders of Chesapeake & Ohio Ry. For their approval President William Johnson Harahan submitted a plan to make C. & O.'s finances even...

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