Railroad Reorganization

March 7, 1975

Report Outline
Watersged Year for Nation's Railroads
Development of U.S. Railway Policy
Concern for Viability of U.S. Railroads
Special Focus

Watersged Year for Nation's Railroads

Government Agency's Proposal for New System

This is the year for the United States to come to terms with its railroad problems. After years of indecision about a proper fate for ailing and failing railroads in the Northeast and Midwest regions, a preliminary official blueprint now exists. After additional hearings, evaluations and possible amendments, Congress will have to either reject the plan by autumn or else acquiesce in its acceptance.

The preliminary plan as drawn up by the federal government would replace the outworn rail transportation system which now serves 17 eastern and midwestern states and half of the country's population. Seven bankrupt railroads, the mammoth Penn Central among them, are included in the Preliminary System Plan for restructuring the rail system in that region. The plan was released on Feb. 26 by the United States Railway Association (Usra), an agency created by the Regional Rail Reorganization Act of 1973 to reorganize the bankrupt lines into “an economically viable system capable of providing adequate and efficient rail service”

Usrs's board of directors said in the Preliminary System Plan that the region should be served by three major rail systems. The act established the Consolidated Rail Corporation, or ConRail, as a federally aided for-profit corporation to acquire and operate those parts of the bankrupt lines to be included in the new system. In addition, the plan would provide for the expansion of the solvent Chessie System (a combination of the old Chesapeake & Ohio, Baltimore & Ohio and other property) and the Norfolk & Western Railway. ConRail, the board said, “is not intended to be a composite of bankrupt carriers, but a revitalized, restructured railroad serving the same territory now served by the bankrupt carriers.”

ISSUE TRACKER for Related Reports
Railroads
May 01, 2009  High-Speed Trains Updated
Oct. 18, 2002  Future of Amtrak
Apr. 16, 1993  High-Speed Rail
Mar. 10, 1978  Future of American Railroads
Mar. 07, 1975  Railroad Reorganization
Jun. 20, 1973  Railroad Nationalization
Nov. 17, 1961  Railroad Subsidies
Aug. 24, 1960  Railroad Mergers
Jan. 01, 1958  Condition of the Railroads
Jan. 31, 1951  Railway Safety
Oct. 04, 1944  Railroad Freight Rates
Jun. 12, 1939  The Government and the Railroads
Apr. 21, 1938  Government Ownership of the Railroads
Dec. 07, 1937  Railroad Rates and Revenues
Jul. 17, 1937  Advances in Railway Passenger Service
Sep. 27, 1934  Railroad Rates And Federal Regulation of Transportation
Jan. 11, 1933  Railroad Receiverships and Reorganizations
Aug. 26, 1932  The Railroads and the Depression
Oct. 13, 1931  Wages of Railroad Labor
Jul. 09, 1931  Railroad Freight Rates
Feb. 14, 1931  The Railroad Consolidation Controversy
Sep. 19, 1927  The Problem of Railroad Valuation
Mar. 30, 1927  Railroad Consolidation and Prospective Legislation
Mar. 26, 1927  Principles of Railroad Consolidation
Mar. 08, 1926  Railway Labor Disputes Legislation
May 04, 1925  The Baltimore and Ohio Cooperation Plan
Sep. 12, 1924  National Railroad Consolidation and the Van Sweringen Merger
Aug. 14, 1924  Automatic Train Control in Relation to Railroad Casualties
May 28, 1924  The Condition of American Railroads
BROWSE RELATED TOPICS:
Railroads
Regulation and Deregulation