Business: Paling Red Ink

Though they have displayed the reddest ink of virtually any U.S. industry this year, railroads in the red last week showed signs of faint pink—in some cases, even black. What helped the hardest-hit Eastern roads was an Interstate Commerce Commission ruling that gave them boosts of up to 30% in mail pay, retroactive to July 1956. With boosted mail pay of $19.4 million, the New York Central trimmed its deficit for the first seven months to $10.6 million. The Pennsylvania, which got $19.2 million from the Post Office, reported a deficit of $11.8 million to Aug. 1. But Vice President David C. Bevan said “earnings for August will definitely be in the black.” Increased freight shipments after vacation shutdowns and the repeal of the 3% federal excise tax boosted August traffic.