Information on Alleged Conrail Mismanagement of Contracting and Track Rehabilitation in Its Toledo and Ft. Wayne Divisions

CED-79-41: Published: Feb 23, 1979. Publicly Released: Feb 23, 1979.

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GAO was requested to assess the validity of allegations put foward by Conrail employees and a Transport Workers Union concerning mismanagement and fraud by Conrail executives. Focus was placed on examples which had occurred in Conrail's Toledo, Ohio, and Ft. Wayne, Indiana, Divisions relating to: (1) Conrail's practice of contracting for derailment and crew transportation services; and (2) the adequacy of track rehabilitation.

According to Conrail studies, contracting for derailment and crew transportation services is generally economical because the services are required infrequently or sporadically. GAO did not find evidence of poor rehabilitation on three track sections which were reviewed and concluded that the allegations were based on incomplete and/or inaccurate information.

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