Business: Perils of the Railroads

Through its in years, the Pennsylvania Railroad has never been successfully challenged by a rebel stockholder or failed to pay an annual cash dividend. Last week both those possibilities cornered the Pennsy.

Into Philadelphia's Sheraton Hotel for its annual meeting jammed 2,500 anxious stockholders. Most of the real noise was made by Manhattan's Randolph Phillips. 47, who has been leading a proxy fight to get himself elected to the Pennsy's 18-man board. A business writer who worked for the late Robert Young until they quarreled (TIME. Dec. 26. 1955), Phillips thinks that the Pennsy can be run better -and that...

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