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- Title
A Nineteenth-Century Investment Decision: the Midland Railway's London Extension.
- Authors
Channon, Geo...frey
- Abstract
The article focuses on the investment decisions in the Midland Railway's London Extension scheme in the 19th century England. In October 1862, the Midland Board decided to submit a Bill giving the company powers to build a railway from Bedford to a new terminus at St. Pancras in London, at great expense, although it had at the time access to London both via Rugby, by the exchange of traffic with the London and North Western, and via Hitchin through a running powers agreement with the Great Northern. In present-day large industrial concerns, the single most important source of capital for fixed investment expenditure is retained profits. The success enjoyed by Midland ordinary shareholders in the years shortly before the London Extension scheme came before them was due to three interrelated factors, the growth in the net disposable balance, capital structure changes and distribution policy. The market expansion of 1858 to 1862 occurred in spite of a probable upward shift in unit costs of operations.
- Subjects
ENGLAND; RAILROAD design &; construction; RAILROADS; STOCKHOLDERS; CAPITAL structure; INVESTMENT analysis
- Publication
Economic History Review, 1972, Vol 25, Issue 3, p448
- ISSN
0013-0117
- Publication type
Article
- DOI
10.2307/2593432