The Times Recorder from Zanesville, Ohio • 5

THE TIMES RECORDER Tl APR. 8. 187S 5-A 1 On April 1, six struggling railroads became a single, more efficient railroad, stretching from Boston to St. Louis. Purpose: to give shippers first-class service and become a profitable company Penn Central Central of New Jersey Erie Lackawanna Lehigh Valley Reading Lehigh Hudson River Now we're one dynamic new company formed from six old railroads.

IT'S GOING TO TAKE TIME. But we've got the people, the money, and the will to make it work. And we've got to make it work. A big chunk of America is counting on us. Our 17,000 miles of track cover an area with 100 million people and 55 percent of America's manufacturing plants.

Including major automobile plants. ConRail serves so much of the auto industry that if we stopped hauling freight even for one day, 26,000 auto workers would be thrown out of work. In business to make a profit Don't confuse us with Amtrak a Government-subsidized company responsible for intercity passenger service. ConRail is a for-profit company primarily a freight railroad. (Under contract to various agencies, ConRail also provides rate for lack of money.

This slowed service and increased damage costs. They had to absorb losses from their commuter lines. And also from unprofitable freight lines. And, in some areas, they didn't have enough flexibility in assigning employees. As you'll see below, the legislation that created.

ConRail specifically attacks each of these major proUems. within minutes, exactly where his cars are at any time. Any day of the week. Headed for success You never know what whims the economy might have up its sleeve. But we've got a lot going for us.

Better use of cars, plus other efficiencies, should bring our cost savings to about $300 million by 1980. Basic growth in freight vol- at Billions to improve roadbeds and equipment operate (or is willing to pick up the tab), ConRail can drop the service after 180 days. Support from the unions The unions want ConRail to succeed, and have already agreed to more flexibility in assigning employees. C. J.

Chamberlain, Chairman, Railway Labor Executives Association, said, "The interest of the labor brotherhoods and the nation will best be served if ConRail becomes a strong viable company. "We in labor will do everything we can to help ConRail reach that goal." Consolidation saves money We're consolidating many facilities and operations to cut costs. For example, in one city, we have already combined what used to be done by five offices into one office under one general manager. In many places, we're classifying cars one time instead of several. More savings.

We're scheduling more efficient train-size lots from original terminals. Still more In creating ConRail, Congress au thorized the purchase of $2.1 billion in ConRail securities. Importantly, ConRail doesn't have to pay interest or dividends in cash in the early years which frees all the money for building a better railroad. We'll use the $2.1 billion (as well as more billions from ConRail revenues) to replace over 4,000,000 ties and over 700 miles of track each year for the next 10 years. We'll also repair freight cars and locomotives and buy new ones.

Repair bridges and tunnels. Install and modernize signalling and ConRail blankets sixteen states with 17,000 miles of track. tracks and operating personnel for passenger trains.) The $2.1 billion we're getting from the Government (see right) comes as an investment that we are legally obligated to pay back. We're in business to improve service and make a profit. But why should we succeed when the six railroads we took over went bankrupt? Old problems attacked head on The Penn Central and other bankrupts had to watch roadbeds and equipment deterio- We've got what it takes.

The money, the people, and the will. ume should bring us additional revenues of $341.5 million by 1985. On that basis, our objective is to start making a profit by 1980. The best alternative Many observers agree that if ConRail can't make a go of it, the only alternative will be nationalization. A bitter pill to swallow, as foreign taxpayers can testify.

Taxpayers in some countries pay over $1 billion a year to cover the losses from railroads. We'll do everything in our power not to let that happen. The last thing in the world America needs is more taxes. We aren't promising miracles. We can't offset decades of neglect overnight.

But we have got a better way to run a railroad. r- traffic control systems. This will mean fewer damage claims, faster service increased earnings. Unprofitable lines no longer a burden Some freight lines that cannot be run at a profit have been dropped. Other freight lines will be kept running if ConRail is compensated for the difference between revenues and the cost of operation.

savings. And the list or savings goes on. Better service to shippers From Day One, we've had faster run-through service. For example, we've lopped more than a full day off some shipments from New York, to Chicago. (Some runs are already 12 to 15 hours faster.) We've cut the number of people that shippers have to deal with from jj For heavy freight over long hauls, trains use less energy than any other form of transportatian.The reason: low friction.

Each wheel rests on an area about the sue of a dime. The compensation would come from the U.S. Government and states that want to keep the lines operating. ConRail will continue to operate conv muter lines so long as the difference between revenues and costs is made up by local and Federal funds. If no one wants these lines to as many as three down to one.

Another source of better service: We've got a huge data processing operation. Five giant computers, 83 high-speed tape drives, 107 on-line disc files. Which means we can tell a customer, ConRail is often the lowest cost way to move truck trailers between the East Coast and the Midwest. Coruol tdatcd Rait Corporation, Philadelphia, Fa..