RAILROADS: Red Signal

When U.S. railroads lost $560 million on their passenger business last year, it was obvious to railmen that something was wrong—and that something had to be done. The Eastern railroads, which had already had fare increases of 28% in about three years, thought that the answer lay in still higher fares. They asked the Interstate Commerce Commission for a 12½% boost. Last week they got it. But the increase apparently did not solve everything; the news that it had been granted merely started everyone asking again: "What's wrong with the railroads?"

The...

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