Business: Rescue for the New Haven

The Commonwealth of Massachusetts went to the rescue of one of its railroads last week with the first state subsidy in U.S. history. After two years of diligent consideration, the legislature voted $900,000 to enable the New Haven railroad (first half loss: $4,962,496) to keep its Old Colony line (1957 loss: $2,400,000) running from Boston south along the vacation resorts (see map) for another year.

For New Haven President George Alpert—and the railroad business—the action was a major breakthrough. The industry's most persistent advocate of subsidy ("I cannot afford the luxury of commuter lines"), Alpert will put pressure on New York State to open its own treasury by lowering rail taxes or subsidizing commuter trains. Other Eastern lines will also use the Massachusetts precedent as a wedge in their campaign for local aid. In New York, the New York Central is particularly anxious for state or municipal help, threatens to halt commuter service unless it receives aid.

The chances of more such subsidies or tax relief are good. Last week eight U.S. Senators from heavily suburban New York, Pennsylvania, New Jersey and Connecticut sent a plea to the Senate Interstate and Foreign Commerce Committee to find a solution to commuter woes, urged "that the Federal Government not preside over the liquidation of vital railroad services." But rather than federal aid or higher fares, the Interstate Commerce Commission believes that more local subsidies for rails are the solution. Says ICC Chairman Howard Freas: "If an urban or interurban commuting service needs subsidizing, it should be by the communities served and not by freight shippers throughout the country."