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B-175155(1) 1 (1976-07-26)

handle is hein.gao/gaobaacuv0001 and id is 1 raw text is: DIG=ST NO cCULT1. COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 1,1751556i) -- JUL 2 6 1976 rg Honorable Vance Hartke, Chairman subcomittee on Surface Transportation coilttee on Commerce 087695 -puar Mr. Chairmans- This is in reply to your letter of March 30, 1976, submitted jointly with Senator Warren G. Magnuson, Chairman, Comnittee on Comnerce, re- questing our review of the purchase of the Northeast Corridor on April 1, 1976, by the National Railroad Passenger Corporation (Amtrak) from the Scnsolidated Rail Corporation (ConRail). The Federal Railroad Adnin- K/, hltration, Department of Transportation (DOT), has taken the position that the Antideficiency Act, 31 U.S.C. 1 665, nfrs, prohibits it from oigvLding grant funds to Amtrak to directly or indirectly finance the u rchase. For reasons to be discus$ed below, we believe that the purchase is not legally objectionable and that the withholding of grant funds was not justified. Since our consideration of the issues involves the complex interrela- .'tionship of severA statutes, we will outline the pertinent statutory pro- visions before proceeding to discuss the issues. fin STATUTORY BACKGROUND Faced with the potentially massive disruption of rail services in wtain areas of the country due to the insolvency of several railroads, Congress enacted the Regional Rail Reorganization Act of 1973 Pub L. D. 93-236 (January 2, 1974), 87 Stat. 985,: 45 U.S.C. 41 70I.t _. The t presented a schee for the reorganization and consolidation of the ,aUnkrupt railroads, with the ultimate goal of providing adequate and efficient rail services. Congress recognised that a major element of any ,;ouch reorgansation was the revitalization of rail transportation in the ANorthaast Corridor, the densely populated and heavily urbanized trip I from Boston to Washington. Congress further recognized that Amtrak must Play a major role in the reorganization of rail passenger service in the krtheast Corridor. Title IYf the Act estabfished the United States Railway Association (USRA)g a nonprofit goverrnent corporation of the District of Columbia, and Charged it with the reorganization's central planning function. USRA was directed to prepare a Preliminary Systen Plan and a Final System Plan! the lattir of which was to go into effect after approval by Congress and review Ieg AN '* ' .- .. . .: : :H ,. : . ',- '- .' ' ( '' ,• ' . -- .

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