PHILADELPHIA — Conrail agreed Monday to pay $3.5 million to settle claims it understated the miles its trains traveled on Amtrak’s rails for reimbursement purposes, a wire service reports.
Conrail was required under a 1986 contract to report the miles its trains traveled on Amtrak’s Northeast Corridor and pay for the use of the tracks, U.S. Attorney Patrick L. Meehan said Monday.
Amtrak filed civil claims alleging that Conrail underreported those “car miles” by “well into the millions,” said Rich Manieri, a spokesman for the U.S. Attorney’s Office.
Conrail denied any allegations of wrongdoing or liability to Amtrak. “Like many settlements, this was done for business reasons, to save time and avoid costs and liabilities,” spokesman Bim McGeehan said.
In return for the $3.5 million, federal prosecutors agreed to release Conrail from any civil liability and Amtrak agreed to drop any claims concerning the reporting of car miles through June 1, 1999, the agreement said.
Conrail and Amtrak also agreed to arbitrate disputes over payment for use of “articulated,” or “spine,” cars on Amtrak’s rails capable of carrying multiple rail-freight containers, the settlement said.