Baltimore and Ohio Railroad

Examples of Baltimore and Ohio Railroad in the following topics:

• Ownership Nature of Stock

  • The stock of a company represents the original capital paid into the business by its founders and can be purchased in the form of shares.
  • Stock is different from the property and assets of a business, both of which may fluctuate in quantity and value.
  • Stock of a company is valued according to market demand and overall business health and this value will fluctuate over time.
  • For example, labor, suppliers, customers and the community are typically considered stakeholders because they contribute value and/or are impacted by the corporation.
  • Ownership of shares is documented by the issuance of a stock certificate and represents the shareholder's rights with regards to the business entity.

• Claim to Income

  • In the cases of bankruptcy and dividend distribution, preferred stock shareholders will receive assets before common stock shareholders.
  • Preferred and common stock have varying claims to income which will change from one equity issuer to another.
  • Access to dividends and other rights vary from firm to firm.
  • This will be different to common stock shareholders and preferred stock shareholders because of the different prices and rewards based on holding these different kinds of shares.
  • Preferred and common stock both carry rights of ownership, but represent different classes of equity ownership.

• Advantages of Private Financing

  • Private financing can enhance a firm's capital structure, save on costs, and improve managerial incentive alignment.
  • Often, privately held companies are owned by the company founders or their families and heirs or by a small group of investors.
  • Managerial incentives: In many instances it is the management which takes over and privately controls the company.
  • Investor involvement: A publicly traded company's shareholders are a large, anonymous, and mostly uninformed group.
  • Private investors, on the other hand, can offer expert knowledge, and direct oversight of the company in a way that can benefit performance.

• Dividend Preference

  • A corporation may issue two basic classes or types of capital stock—common and preferred.
  • However, a company can have both a "voting" and "non-voting" class of common stock.
  • Holders of common stock are able to influence the corporation through votes on establishing corporate objectives and policy, stock splits, and electing the company's board of directors.
  • There is no fixed dividend paid out to common stock holders and so their returns are uncertain, contingent on earnings, company reinvestment, and efficiency of the market to value and sell stock.
  • Preferred stock usually carries no voting rights, but may carry a dividend and may have priority over common stock upon liquidation, and in the payment of dividends.

• Transportation: Roads, Canals, and Railroads

  • By 1803, the country was growing rapidly with the admission of Kentucky, Tennessee, and Ohio; however, the only means of transportation between these landlocked western states and their coastal neighbors was by foot, pack animal, or ship.
  • New and improved transportation technology made it easier and faster to transport goods: first national roads, then canals, and finally the railroad revolution.
  • Railroads provided a quick, scheduled, and year-round mode of transportation.
  • The most prominent early railroad was the Baltimore and Ohio Railroad (B&O), which linked the port of Baltimore to the Ohio River and offered passenger and freight service as of 1830.
  • Land developers, railroad magnates, and other investors capitalized on westward settlement into American Indian land.

• Accounting for Preferred Stock

  • All preferred stock is reported on the balance sheet in the stockholders' equity section and it appears first before any other stock.
  • issuing so many additional shares of common stock that earnings per share are less in the current year than in prior years; and
  • When a corporation issues both preferred and common stock, the preferred stock may be:
  • The par value, authorized shares, issued shares, and outstanding shares is disclosed for each type of stock.
  • Differentiate between preferred to dividends, noncumulative, cumulative and convertible preferred stock

• The Growth of Cities

  • In the early 1800s, the ports of Boston, Philadelphia, Baltimore, and New York were sites of rapid urban development.
  • The eastern port cities of Boston, New York, Philadelphia, and Baltimore transformed the demographic landscape of the United States in the early 1800s.
  • Other Baltimore businessmen also contributed to the city's development.
  • In 1827, Baltimore's merchants and bankers developed the tremendously successful Baltimore and Ohio Railroad.
  • By the mid-nineteenth century, an even denser network of railroads facilitated the region's industry and commerce.

• The Railroad Strikes

  • The Great Railroad Strike of 1877, also called The Great Upheaval, spanned 45 days and four states and caused the deaths of many strikers.
  • The Great Railroad Strike of 1877, sometimes referred to as the Great Upheaval, began on July 14 in Martinsburg, West Virginia, in response to the cutting of wages for the second time in a year by the Baltimore & Ohio Railroad.
  • On July 24, rail traffic in Chicago was paralyzed when angry mobs of unemployed citizens wreaked havoc in the rail yards, shutting down both the Baltimore and Ohio and the Illinois Central Railroads.
  • The railroads succeeded in having Richard Olney, general counsel for the Chicago, Milwaukee, and St.
  • Burning of Pennsylvania Railroad and Union Depot, Pittsburgh, Pennsylvania, 21–22 July 1877

• Incorporation Doctrine

  • Baltimore (1833), the Supreme Court declared that the Bill of Rights applied to the federal government, and not to the states.
  • The first instance of incorporation include the case Chicago, Burlington and Quincy Railroad v.
  • Ohio (1961).
  • Amendments IX and X have not been incorporated against the states, as they apply expressly to the federal government alone.
  • Amendment VI, the right to a trial by a jury and the right to counsel, was incorporated against the states in the case Gideon v.

• From Competition to Consolidation

  • Morgan raised large sums in Europe, but instead of only handling the funds, he helped the railroads reorganize and achieve greater efficiencies.
  • In 1886, he reorganized the Philadelphia & Reading and, in 1888, the Chesapeake & Ohio.
  • He was heavily involved with railroad tycoon James J.
  • Rockefeller organized his Standard Oil of Ohio as a common-law trust .
  • The result was the Sherman Antitrust Act of 1890, sponsored by Senator John Sherman, of Ohio.