Peter & Paul

Adolph Augustus Berle Jr. had called it "close to a high-water mark in vicious finance." The Interstate Commerce Commission declared it was not in the public interest. In a last-ditch stand, Pennsylvania's Democratic Representative Francis E. Walter cried that it would cause "a scandal." Nevertheless Congress last week, in a brisk mood, passed and sent the Wheeler-Reed rail reorganization bill.

The bill provides that any bankrupt road may be turned over to stockholders' control if it 1) earned enough to meet fixed charges during the preceding seven years and 2) grossed more than $50 million in any one...

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