The Pennsylvania Railroad Co.'s tart-tongued president, Martin Withington Clement, was once asked by the Interstate Commerce Commission why he let Manhattan's Kuhn, Loeb & Co. underwrite a Pennsy bond issue. Snapped he: "I deal with whom I please."
Last week, the ICC drastically curbed the right of Pennsylvania's Clement and all other U.S. railroaders to deal where they pleased. In a historic, 26,000-word report that wound up a 20-year-old fight, the ICC ordered: after June 30, railroad bond issues above $1,000,000 must be sold through competitive bidding.
This resulted from Pennsy's attempt last July to sell a $28,483,000 bond...
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