Stock Ownership
Most railroad companies are publicly traded with stocks. As the stockholders control the company, one railroad company can buy a majority of stock of another one in order to control it. Sometimes a bridge line, a railroad that has a majority of traffic coming from points not on its line, is owned equally by the companies that use it (via trackage rights).
Stock ownership does not automatically result in merge of operations, merely in friendly policies towards each other. Operating and leasing agreements typically require a more stringent approval process through the regulating body.
If the owned company goes bankrupt, its stock is worthless, and the owner no longer controls it (unless it buys it back at auction).
Read more about this topic: Arrangements Between Railroads
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