45 U.S.C. § 1301 — Findings

Page 261 TITLE 45—RAILROADS § 1303 1 See References in Text note below. Sec. 1312. Public offering. 1313. Fees. PART B—OTHER MATTERS RELATING TO SALE 1321. Rail service obligations. 1322. Ownership limitations. 1323. Board of Directors. 1324. Certain enforcement relief. PART C—MISCELLANEOUS PROVISIONS 1341. Abolition of United States Railway Associa- tion. 1342. Exemption from liability. 1343. Charter amendment. 1344. Status of Conrail after sale. 1345. Effect on contracts. 1346. Resolution of certain issues. 1347. Tax treatment of Conrail public sale. SUBCHAPTER I—GENERAL PROVISIONS § 1301. Findings The Congress finds that— (1) the bankruptcy of the Penn Central and other railroads in the Northeast and Midwest resulted in a transportation emergency which required the intervention of the Federal Gov- ernment; (2) the United States Government created the Consolidated Rail Corporation, which pro- vides essential rail service to the Northeast and Midwest; (3) the future of rail service in the Northeast and Midwest is essential and must be pro- tected through rail service obligations, con- sistent with the transfer of the Corporation to the private sector; (4) the Northeast Rail Service Act of 1981 has achieved its purpose in allowing the Corpora- tion to become financially self-sustaining; (5) the Federal Government has invested over $7,000,000,000 in providing rail service to the Northeast and Midwest; (6) the Government, as a result of its ownership and investment of taxpayer dollars in the Corporation, controls substantial as- sets, including cash of approximately $1,000,000,000; (7) the Corporation’s viability and sound per- formance allow it to be sold to the American public for a substantial sum through a public offering; (8) a public offering of the Corporation’s stock will preserve competitive rail service in the region, provide a reasonable return to the Government, and protect employment; (9) the Corporation’s employees contributed significantly to the turnaround in the Cor- poration’s financial performance and they should share in the Corporation’s success through a settlement of their claims for reim- bursement for wages below industry standard, and a share in the common equity of the Cor- poration; (10) the requirements of section 761(e) 1 of this title are met by this chapter; and (11) the Secretary of Transportation has dis- charged the responsibilities of the Department of Transportation under the Northeast Rail Service Act of 1981 with respect to the sale of the Corporation as a single entity. (Pub. L. 99–509, title IV, § 4002, Oct. 21, 1986, 100 Stat. 1893.) Editorial Notes REFERENCES IN TEXT The Northeast Rail Service Act of 1981, referred to in pars. (4) and (11), is subtitle E of title XI of Pub. L. 97–35, §§ 1131–1169, Aug. 13, 1981, 95 Stat. 643. For com- plete classification of this Act to the Code, see Short Title note set out under section 1101 of this title and Tables. Section 761 of this title, referred to in par. (10), was repealed by Pub. L. 99–509, title IV, § 4033(a)(1), Oct. 21, 1986, 100 Stat. 1908. This chapter, referred to in par. (10), was in the origi- nal ‘‘this subtitle’’ meaning subtitle A (§§ 4001–4052) of title IV of Pub. L. 99–509, Oct. 21, 1986, 100 Stat. 1892, known as the Conrail Privatization Act, which is clas- sified principally to this chapter. For complete classi- fication of subtitle A to the Code, see Short Title note set out below and Tables. Statutory Notes and Related Subsidiaries SHORT TITLE Section 4001(a) of subtitle A (§§ 4001–4052) of title IV of Pub. L. 99–509 provided that: ‘‘This subtitle [enacting this chapter, amending sections 702, 726, 727, 741, 797, 821, 825, 829, 831, 1105, 1115, and 1116 of this title and sec- tions 10362 and 10713 of Title 49, Transportation, repeal- ing sections 761 to 769c, 797l, 825a, 1107, 1110, and 1114 of this title, and enacting provisions set out as a note under section 797 of this title] may be cited as the ‘Con- rail Privatization Act’.’’ § 1302. Purposes The purposes of this chapter are to transfer the interest of the United States in the common stock of the Corporation to the private sector in a manner that provides for the long-term viabil- ity of the Corporation, provides for the continu- ation by the Corporation of its rail service in the Northeast and Midwest, provides for the pro- tection of the public interest in a sound rail transportation system, and, to the extent not inconsistent with such purposes, secures the maximum proceeds to the United States. (Pub. L. 99–509, title IV, § 4003, Oct. 21, 1986, 100 Stat. 1893.) § 1303. Definitions For the purposes of this chapter— (1) the term ‘‘capital expenditures’’ means amounts expended by the Corporation and its subsidiaries for replacement or rehabilitation of, or enhancements to, the railroad plant, property, trackage, and equipment of the Cor- poration and its subsidiaries, as determined in accordance with generally accepted account- ing principles, and in interpreting generally accepted accounting principles, no amount spent on normal repair, maintenance, and up- keep of such railroad plant, property, track- age, and equipment in the ordinary course of business shall constitute capital expenditures; (2) the term ‘‘Commission’’ means the Inter- state Commerce Commission; (3) the term ‘‘consolidated funded debt’’ means the aggregate, after eliminating inter- company items, of all funded debt of the Cor- poration and its consolidated subsidiaries, consolidated in accordance with generally ac- cepted accounting principles;