Conrail Faces Continuing Problems

Federal legislation establishing the Consolidated Rail Corporation (Conrail) authorized Federal assistance of $2.1 billion to enable the company to become profitable by the end of 1979. Conrail, in its latest business forecast, stated that this amount was not enough and that it will need an additional $1.3 billion through 1982 to achieve financial self-sufficiency. The United States Railway Association (USRA), in its report to the Congress, identified problems which indicated Conrail's poor prospects for achieving self-sufficiency.