Pay As You Go

Without spending a nickel, the Pennsylvania Railroad made a deal for 10,000 new freight cars last week, the biggest order placed with car builders* in 25 years. The $55 million bill (80% down payment) will be paid by the Equitable Life Assurance Society (see below), which will rent the cars to the Pennsy for 15 years, on a sliding scale running from $1.50 down to $1 a day. This is the fourth rail equipment purchase Equitable has arranged since President Thomas I. Parkinson launched its plan eight weeks ago (TIME, April 10) to 1) put its idle funds to work, and 2) furnish cash-short railroads with cars they badly need. The other deals: 1,300 cars for the Atlantic Coast Line, 1,500 for the New York Central, 500 for the Delaware & Hudson.

* Pullman-Standard Car Mfg. Co., Bethlehem Steel Corp., Pressed Steel Car Co., American Car & Foundry Co., General American Transportation Corp. and Greenville Steel Car Co.

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