Conrail’s second-quarter income was off 32%,but the...

Conrail’s second-quarter income was off 32%,but the railroad said the decline was anticipated because of Conrail’s transfer to private-sector ownership. The move canceled the company’s exemption from state taxes, and its net operating loss and investment credit carryforward, which had sheltered the company from federal income taxes in recent years and which would otherwise have been available to shelter future income, were canceled concurrently with the public offering. While Conrail continued to exhibit traffic growth, there was also competitive pressure on prices that affected income.