RAILROADS: How to Run One

Hired as president and chief executive officer of the New York Central Railroad in 1954 by the late Robert R. Young, Old Railroader Alfred E. Perlman was given a $100,000-a-year salary and a fat option to buy 32,000 shares of Central stock at 19⅞ But Bob Young did not believe in contracts, would not give Perlman one. Last week the Central's directors acknowledged Perlman's success in improving the road's equipment and operations, after six years on the job signed him to a long-term contract. The terms: for the next seven years, until he is 65, Perlman, who now...

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