CONSOLIDATED RAIL CORPORATION

byname Conrail, publicly owned American railroad company established by the federal government under the Regional Rail Reorganization Act of 1973 to take over six bankrupt northeastern railroads. Conrail commenced operations on April 1, 1976, with major portions of the Central Railroad Company of New Jersey, Erie Lackawanna Railway Company, Lehigh & Hudson River Railway Company, Lehigh Valley Railroad Company, Penn Central Transportation Company, and Reading Company. In 1987 the government put its stock up for sale to the public. Conrail carries freight traffic in the northeastern and midwestern states. Its tracks extend from the Atlantic Ocean to St. Louis and from the Ohio River north to Canada. All passenger traffic was turned over to Amtrak or to regional transportation authorities in 1983. Conrail was set up to be an independent profit-making corporation though in its early years, even with the aid of federal loans, it lost more than the bankrupt lines had lost before consolidation. Stockholders in the roads taken over received Conrail stock in exchange. By 1983 the corporation had become profitable. The system operates in 15 states over some 12,000 miles (about 19,000 km).