NO U.S. industry is in quite so big a mess as transportation. The nation's major railroads last year earned less than 2% on invested capital, and the big Eastern roads plunged $96 million into the red. This year times are just as tough. As for the nation's eleven trunk airlines, stuck with too many costly jets and too few passengers, they lost $5.5 million in 1962's first half, have not turned in a cumulative profit since 1960.

On the proven principle that two together can live cheaper than two separately, railroads are trying to figure out new combinations that would both make...

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