Railroads: Red Light in Washington

Of the 23 U.S. railroads with merger applications before the Interstate Commerce Commission, none are more eager to unite than the Pennsylvania Railroad and the New York Central. The Central lost $4.4 million and the Pennsy $1.1 million during 1963's first half. Both badly need to strengthen their competitive positions, particularly since the rich Chesapeake & Ohio has already gained ICC approval to control the Baltimore & Ohio, and the well-run Norfolk & Western appears certain to win an O.K. to merge with the Wabash and Nickel Plate.

Last week the Kennedy Administration flashed a red signal on the Pennsy-Central...