One would think that having a contract with a large profitable company, the supplier would do all is possible to keep the contract for it can be renewed for many years. One may think that but a supplier to Norfolk Southern Corp – one of the largest railway companies is suing a supplier Boatright Railroad Products Inc. Boatright supplies rail ties or the wood underneath the rail and a large company needs millions of ties. Norfolk has to replace them faster than normal because many of them were not coated with creosote. A memo by Boatright ordered workers to make the ties black by any means necessary including using motor oil, antifreeze, black paint and other chemicals. None of these you would use on your fences to treat them against the weather. One would think a company which has the name right as do it right in their name would actually do it right.

Norfolk will find another supplier and Boatright Railroad Products will be out of business with the reputation gone. All because people decided it was better to try to fool the big railway company. Big companies are often in the business for years and have people to worry about how long their products are lasting and how long they should last. It was stupid for Boatright to do and they will see the consequences.

Linking to dividend paying stocks, a reason to buy these companies is they have a long history of making profits which means they can be ethical or as ethical as possible in their dealings. Will mistakes be made, some but they should not be institutionalized and often can be corrected without the company going out of business or being sold. Sometimes making the correct decision is hard if profits are on the line, but having a long history of making profits should allow more correct decisions.

There are more questions than answers, till the next time – to raising questions.