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$1.5 Million Sought From Conrail for Safety Lapses

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Reuters

The Federal Railroad Administration will seek more than $1.5 million in civil penalties from Consolidated Rail Corp. for alleged violations of federal safety rules over the past year, officials said today.

Officials said at a news conference that the railroad agency had turned up 1,729 “violation recommendations” in the past year and estimated the total penalty to be assessed in the range of $1.5 million to $2 million.

The officials said Conrail has already been assessed--but has not yet paid--about $898,000 for earlier violations.

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The FRA, a part of the U.S. Department of Transportation, said in a study released today that Conrail management at the senior level “has a genuine commitment to safety” but failed to translate that commitment into safe operation throughout the system.

The FRA study found that too many Conrail middle managers stressed production over safety.

Conrail was set up by Congress to combine the operations of the bankrupt ruins of several of the Northeast’s largest freight railroads and began operating in April, 1976.

In March of last year, the government sold its 85% stake in the railroad in an initial public offering that raised a record $1.65 billion. The remaining 15% of the railroad, at whose core are the remains of the once-mighty Penn Central, is owned by Conrail’s present and former employees.

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