First, as complete disclosure, this reviewer must inform the reader that he knows Henry Posner III and admires his work. Obviously, Professor Grant admires the work of Railroad Development Corporation (RDC) as well. This book is an additional volume to the Indiana University Press series of Railroads Past and Present edited by Grant along with Professor George Smerk. Although a historical record of RDC, this book is organized into several vignettes, telling of several abortive attempts to purchase spinoffs from the US class I network—interesting because they follow the history of each railroad to set the stage for RDC's investment efforts. Moreover, they explain the history of RDC involvement with each property, detailing both the rewards and the risks in international railway investments.While the title of the book may seem to be a play on words, RDC clearly is in the business of going into risky situations (both physically and financially) to rescue worthwhile railroads from ignominious demise. I thought I knew about many of RDC's ventures but nevertheless got an education on RDC's history. Besides the well-known rescue of the Rock Island by Iowa Interstate, RDC has been involved in railroad rescue operations in Argentina, Guatemala, Peru, Mozambique, Malawi, Estonia, Columbia, Germany, and, while not a railroad, an innovative Pennsylvania bus service. Not all of RDC's ventures have survived or been financially lucrative. However, it is clear that while RDC has a remarkable ability to determine viability of ailing distant railroads, it is not in business to simply maximize profit. Rather, it is in the business of saving railroads where it can be done at a profit.The book documents a sound financial reason that RDC moved to investments outside the United States. According to Posner, the situation in the United States has devolved into too few sellers and too many buyers, resulting in an auction environment where prices usually exceed the economic value of the investment. RDC's quest for investment opportunities has led RDC to many countries that have produced a storied (if not lucrative) history in South America, Central America, Africa, and Europe. Although each situation has been different, RDC has several principles for doing business: (1) they wanted to keep the local flavor of a property to help it blend in with the culture; (2) safety is paramount; (3) paying a living wage to employees is required; and (4) RDC differs from many short-line holding companies because for RDC working with partners is desired if not required to insure success. To say it another way, RDC only invests when the project makes economic sense, but clearly the company puts business methods ahead of profit. Unfortunately for RDC, success often sows the seeds for dissolution of their involvement in projects. Not all governments respect property rights to the extent that the United States does, and several times RDC has been forced out after the investments have proven to be profitable. The strength of the book is that it follows the rail properties both before and after RDC investment. In doing so, the reader gets a clear picture of both international rail management and the efforts of RDC.The book is well researched and very readable; it has historical value for this reason alone. However, the book's greatest value comes from documenting both how railroads get into trouble and how they can be saved (or not, as the case may be). Posner has great expertise in assembling partnerships that are both capable of revitalizing railroads and integrating them with the locales where they operate. Further the political and competitive situations where RDC has operated provide an interesting economic view of the industry begging such questions as: How should freight railroad ownership be structured? What are the advantages and disadvantages of private versus public ownership? Is the European model for open access viable for freight and/or passenger? Professor Grant answers (or hints at answers) to some of these questions.While this book was not entirely what I expected, it was nevertheless interesting, informative, and illuminating. It is a must have addition to any historical collection because of the way it touches on many railroad histories around the globe and tells the complete stories of railroad collapses and subsequent rebirths. The book touches on important economic issues for governments wrestling with railroad governance. Finally, the book tells the tale of a corporation that exists to find and invest in viable rail service in places where others fear to tread. Perhaps Professor Grant should have considered titling this book Railroad Doctors Without Borders?
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