For the past 18 months, federal planners have been wrestling with the problem of how to make the bankrupt Northeastern rail system once more efficient and profitable. In February, the U.S. Railway Association—a Government cure seeker created by the Regional Rail Reorganization Act—issued its preliminary plan for a Government-backed corporation that would consolidate about 15,000 miles of the old Penn Central and half a dozen other bankrupt lines. That plan was much criticized by politicians; New York Governor Hugh Carey called it "utterly unacceptable."
Last week the rail planners tried again. They submitted a revised "final plan" to Congress that...
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