The Company’s mandate was to revitalize rail service in the Northeast and Midwest and to operate as a for-profit company. The Final System Plan was approved by Congress as the Railroad Revitalization and Regulatory Reform Act of 1976 (the “4R Act”) and signed into law on February 5, 1976.Ĭonrail was incorporated in Pennsylvania on February 10, 1976, and began operations on April 1, 1976. Under the Act, the United States Railway Association (USRA) prepared a Final System Plan, identifying the rail lines from the bankrupt railroads that would be transferred to Conrail. The 3R Act provided interim funding to the bankrupt railroads and created Consolidated Rail Corporation (Conrail) as a government-funded private company. To address the imminent collapse of freight and passenger traffic in the east as a result of the railroad bankruptcies, Congress passed the Regional Rail Reorganization Act of 1974 (the “3R Act”). As a result, between 19, six major northeastern railroads went bankrupt. In the east, railroads were financially harmed by the collapse of coal traffic in the 1960s as the country shifted to oil. Between 19, railroads were detrimentally affected by the growth of air and truck transportation. Railroads were the country’s primary source of freight transportation prior to 1930. Brief History of Consolidated Rail Corporation
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