ICC Wringer

Since 1930 more than 100 railroads (almost one-third of the nation's railroad mileage) have relapsed into receivership or bankruptcy. While investors wait, their $6,000,000,000 of capitalization is slowly unraveled in the courts. Last week ICC reported what it has done to help them: 1) approved or recommended cuts of $2,133,875,000 in the capitalization of 25 roads; 2) slashed their combined debt from $3,708,484,000 to $1,609,526,000; 3) reduced annual fixed charges of $131,463,000 to $39,452,000.

Of the bigger roads going through the ICC wringer, Missouri Pacific had its capitalization halved to $347,411,000, its interest charges pared one-third. Chicago, Milwaukee, St. Paul & Pacific's yearly charges are now $10,685,000, were $14,954,000.

To thousands of common stockholders in sub-par roads, the ICC report was not cheering. Some (MOP, New Haven, North Western) have been wiped out completely. But oldtimers in Wall Street recalled the drastic reorganizations of Santa Fe and Union Pacific in the '90s, their good earnings since.

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