Santa Fe holders could gain from a railroad sale.

During a hearing before the Interstate Commerce Commission in which Santa Fe Southern Pacific Corp. asked the commission to reconsider the proposed merger of its two subsidiary railroads, ICC Chairman Heather Gradison asked S. P. lawyer Douglas Stephenson, “Are you worth more dead or alive?” If the merger is ultimately denied, Santa Fe Southern Pacific will have to sell one or both railroads. Stephenson replied that stockholders probably would benefit if the railroad were sold in pieces, but he maintained that shippers and the public would benefit from S. P.’s merger with Santa Fe. Santa Fe Southern Pacific said that competitive problems that scuttled the deal have been resolved, but some opponents said the revised proposal is little changed.