The solvent U.S. railroads are now earning their fixed charges better than two and a half times over, but some of their bonds are still selling at discounts up to 40%. On March 2, to be exact, some $5,000,000,000 of nonbankruptcy rail bonds had a market value of about $3,500,000,000.
This is a situation to make a railroad treasurer's mouth water. Everyone agrees that the railroads should get their fixed charges down, so why not use some of their war profits to buy back some of their bonds at bargain sale prices? The...
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