
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, May 26, 1995                   TAG: 9505260086
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A9   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                 LENGTH: Short

PANEL VOTES TO MAKE AMTRAK PRIVATE

A House subcommittee voted Thursday to get the government out of the rail passenger business after a quarter-century and convert Amtrak into a private business.

The bill, sent to full committee on an 11-5 vote, would provide subsidies of nearly $3.6 billion over the next five years, gradually ending federal assistance by 2002.

Stock held in Amtrak by the Transportation Department and the freight railroads would be returned, and Amtrak would be permitted to incorporate as a business and sell stock.

Created 25 years ago to take over rail passenger service from the private lines that no longer wanted to handle it, Amtrak has consistently lost money, requiring a federal subsidy of about $1 billion annually.

Associated Press

by CNB