Business: Weary Erie

When rising costs and falling revenues snipped the net operating income of Erie Railroad from $1,200,000 in December 1936 to $45,000 in December 1937, it could no longer meet its debt charges. When RFC refused Erie's request for a $6,006,000 loan because Erie's wealthy parent company, the Chesapeake & Ohio, would not guarantee the loan (TIME, Jan. 17). the jig was up. Last week, therefore, Erie wearily filed a petition to reorganize under section 77 of the Bankruptcy Act, its fourth reorganization in 100 years.

...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!