Date of Award

2-27-1964

Degree Type

Master's Essay - Restricted

Degree Name

Master of Business Administration (MBA)

Department

Business Administration

Abstract

A railroad exists to furnish transportation. In order to attract new customers and maintain old ones in a period when competition from other modes of transportation is increasing, it is necessary that railroads provide safe and dependable service on schedules designed to meet the demands of shippers. In order to achieve these goals, railroads have launched a campaign of car building and rebuilding, redieselization, electronic data processing and other capital improvements. "The railroads are thus tooling up for an all-out campaign against freight loss and damage."1 Further, during the year 1963, an estimated 1,000 diesel units were purchased compared to 632 in 1962 and 288 in 1961.2 These new locomotives have contributed significantly to cost-cutting; perhaps more important, they have enabled the railroads to offer faster freight service, as evidenced in the number of new freight schedules announced during 1963.3 In an era when capital for investment is difficult to gather, the need for additional techniques for choosing alternative investment is difficult to gather, the need for additional techniques for choosing alternative investment opportunities becomes increasingly important. For example, the Terminal Railroad Association of St. Louis had little difficulty in determining that locomotives which are 20 years old must be replaced in 1964.

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