One-Track Idea

A pair of railroads that have learned how to stay in the black in good times or bad are the 2,130-mile Norfolk & Western and the 608-mile Virginian, two of the nation's major soft-coal-hauling lines. Unlike other Eastern roads, which groan under huge passenger deficits, the N. & W. carries few passengers and the Virginian none. Despite last year's Eastern rail slump, the Virginian turned in profits of $11.6 million (off from $17 million in 1957), while the N. & W. earned $43.5 million (off from $44.5 million). Last week the two roads decided that profits would rise ever so much higher if they got-together. In announcing merger plans, N. & W. President Stuart Thomas Saunders and Virginian President Frank D. Beale said that "savings of about $1,000,000 a month can be realized through elimination of duplicating facilities."

Their deal will produce a seven-state system, branching from Norfolk to Cincinnati. It calls for a swap of .55 of one share of N. & W. common (current price: 91 1/4) for each share of Virginian (current price: 46 5/8). The match is Almost certain to be consummated. It has the green light from the Pennsylvania Railroad, which controls about 45% of N. & W.'s voting stock, and from Boston's Eastern Gas & Fuel Associates, which controls more than 50% of the Virginian shares.

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