Business: Dear Jesse: . . . Dear Mr. Vanderbilt: . . .

New York Central R. R. has a problem. It owes $63,000.000 to a group of ten big banks headed by J. P. Morgan & Co. and George Fisher Baker's First National. It owes another $27.000.000 to RFC. Even on Central's billion-dollar balance sheet $90,000,000 of bank and RFC loans is an ominous item. The money was borrowed in the depths of Depression when Central was draining its cash into its huge development program on Manhattan's West Side.

Its creditors were never really worried about getting their money back, though deficits have been a Central...

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