AP US Railroad Vocab Unit 7
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Created by:
Beachybry777 on February 28, 2012
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7 terms
Terms | Definitions |
|---|---|
 Subsidy | A grant by the government to a private company or person (land, a loan, or on outright gift of money) to assist an enterprise deemed advantageous to the public). Railroads built off of government subsidies |
| Pool (Pooling) | An agreement (usually secretive) among competing companies to fix prices, output, or to divide the sales territory. Competition can drive prices down. |
| Stock watering | This practice occurred when railroad stock promoters grossly inflated their claims about a given line's assets and profitability and sold stocks and bonds far in excess of the railroad's value. |
| Rebate | the return of part of a payment back to a company by the company to whom the payment had been made; similar to a kickback. |
| Drawback | A rebate given by a railroad to an important shipper of goods to compensate for transporting shipments belonging to the important shipper's competitors. |
| Short haul/Long haul abuse | Often railroads barons slashed their rates on competing lines, but they more than made up the difference on non-competing ones, where they might actually charge more for short haul than a long haul. |
| Merger | the joining together of two or more companies. |
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