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Abstract

Form of Equipment Contracts. A large part of the rolling stock and equipment obtained by railroads in the United States and Canada is financed through the issue of equipment obligations. At the present time, approximately three-quarters of a billion dollars, par value, of these securities are outstanding, and they have come to constitute about six per cent. of the aggregate funded debt of railroads. Yet in spite of their large and growing importance, they are probably not as well understood as other common forms of corporate securities, and it is doubtful if many lawyers are fully cognizant of the peculiar legal bases on which they rest.

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