Book excerpt: Excerpt from How to Analyze Railroad Reports The first question usually considered by one who contemplates investing money on a partnership basis in a business enterprise is the possibility of expansion in earning power. Few persons will knowingly place their funds, on such a basis, in any undertaking which is not currently earning a satisfactory return, and only a limited number will consider going into a paying business unless they are convinced that there are possibilities of growth and expansion ahead, in the amount of profits to be secured. The hope that his money, thus invested, will earn from year to year an increasing return, is usually the motive that induces a man to place his capital at risk on the same general basis that the active, or work ing, partner gives his time, his labor and the fruits Of his training or experience. The stockholder in any corporate undertaking is in precisely the same position as the investing partner. Whether the enterprise happens to be a steam railroad. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.