An Act to authorize the Secretary of Transportation to make loans to certain railroads in order to restore or replace essential facilities and equipment damaged or destroyed as a result of natural disasters during the month of June 1972
PL 92-591 (S.3843), enacted 10/27/1972

1304 
PUBLIC LAW 92-591-OCT. 27, 1972 
[86 STAT. 
October 27, 1972 
[S. 3843] 
Public Law 92-591 
AN ACT 
To authorize the Secretary of Transportation to make loans to certain railroads 
in order to restore or replace essential facilities and equipment damaged or 
destroyed as a result of natural disasters during the month of June 1972. 
Be it enacted hy the Senate and House of Representatives 
of the 
Emergency Rail United States of AmeHca in Congress assembled^ That this Act may be 
T
a
c
t
i
o
n A?t.^^''°" cited as the "Emergency Rail Facilities Restoration Act". 
24 Stat. 379; 
84 Stat. 1499. 
•:'A-r^. 
DEFINITIONS 
fAa-u,.. 
SEC. 2 For the purpose of this Act— 
•>' --s' '^ 
' 
«
^ 
(a) "Secretary" means the Secretary of Transportation. 
(b) "Railroad" means any common carrier by railroad subject to 
pait I of the Interstate Commerce Act (49 U.S.C. 1-27). 
(c) "Net income" means ordinary income reported to the Interstate 
Commerce Commission pursuant to the relevant railroad annual report 
form, adjusted for extraordinary items of a nonrecurring nature and 
directly related to railroad operations. 
Loans. 
Limitation. 
47 Stat. 1474; 
76 Stat. 572. 
Appropriation. 
AUTHORIZATION 
SEC. 3. The Secretary is authorized to make loans, upon such terms 
and conditions as are specified by this Act and any others he deems 
appropriate, in an aggregate amount not to exceed $48,000,000 to 
railroads undergoing reorganization under section 77 of the Bank-
ruptcy Act, as amended (11 U.S.C. 205), to railroads which have 
reported to the Interstate Commerce Commission in the railroad 
annual report a deficit net income for either of the last two calendar 
years, and to railroads whose certified damage to railroad facilities or 
equipment as a result of the natural disasters which occurred during 
the month of June 1972 exceeds their net income for either of the last 
two calendar years for the purpose of restoring or replacing railroad 
facilities, equipment, or services which are determined to be essential 
to public service (including, without limitation, bridges, track, track 
structures, signal and communication systems, and rolling stock) 
damaged or destroyed as a result of the natural disaster's which 
occurred during the month of June 1972. There are authorized to be 
appropriated to the Secretary to remain available through June 30, 
1975, such sums as are necessary to carry out the purposes of this Act. 
TERMS AND CONDITIONS 
SEC. 4. (a) Prior to making a loan under tliis Act the Secretary 
shall— 
(1) find in writing that there is no other practicable means of 
obtaining funds from either private or government sources than 
a loan pursuant to this Act; 
(2) require that application be made by a railroad in such form 
and substance as the Secretary shall prescribe; 
(3) require satisfactory proof in writing of costs incurred or to 
be incurred in the restoration or replacement of essential railroad 
facilities, equipment, or services; 
(4) take appropriate action to insure that funds loaned under 
this Act are used solely for the purpose of restoring or replacing 
facilities and equipment (including the upgrading of such facil-
ities and equipment) damaged or destroyed as a result of the 
natural disasters of June 1972; 
86 STAT. ] 
PUBLIC LAW 92-591-OCT. 27, 1972 
1305 
(5) obtain satisfactory assurances from the applicant railroad 
that the restoration or replacement to be accomplished with funds 
made available under the loan shall be completed without undue 
delay; 
(6) require as a condition of the loan that the United States 
obtain such security as the Secretary deems will adequately pro-
tect the interests of the United States except that, in the case of 
a railroad undergoing reorganization under section 77 of the 
Bankruptcy Act, as amended (11 U.S.C. 205), if the Secretary 
47 stat. i474; 
expressly determines in writing that the railroad does not have ^^ ^*^*- ^^2. 
sufficient working capital to fund the restoring or replacing of 
essential railroad facilities, equipment, or services, he may, not-
withstanding section 3466 of the Kevised Statutes (31 U.S.C. 
191) or any other law, require any priority or subordination of 
the interests of the United States he deems to be appropriate in 
relation to the claims of any other creditors of the railroad or its 
trustees, so long as such position is not lower than that of a 
prebankruptcy unsecured creditor of the railroad; and 
(7) require that no part of the restoration or replacement work 
to be financed by the loan program hereunder which is presently 
or should be performed under collective bargaining agreements by 
railroad employees shall be subcontracted by the railroad; except 
that to the extent that the Secretary finds in writing that railroad 
employees, including employees on furlough, in the affected 
region are insufficient to perform such restoration or replacement 
work and that such railroad employees on furlough, if not recalled 
by the railroad will be employed by a subcontractor to perform 
such work in which event such employees shall be deemed to be 
railroad employees retaining all the rights and privileges of rail-
road employees while so employed. 
(8) None of the foregoing conditions shall apply to such work 
.««ijB:<te)U 
undertaken prior to the enactment of this Act. 
(b) No loan application shall be approved under this Act after 
eight months have elapsed from its date of enactment. 
(c) (1) The Secretary in reviewing applications for loans shall 
Restoration or 
examine such applications to determine whether any service or facility •"^p^a'^ement. 
which is essential to the public interest in maintaining transportation 
service, including specifically the Sunbury-Wilkes-Barre (Button-
wood) line, will not be restored or replaced. In making such determi-
nation the Secretary shall take into consideration the interests of 
persons and communities affected thereby; existing rail facilities and 
t-^s Q •«•'«'* 
the pattern of service by railroads; and the public interest in a bal-
anced and economical transportation system responsive to the needs 
of the public and the users of such system. 
(2) If after such determination the Secretary finds that any such 
service or facility of the applicant railroad will not be restored or 
replaced, the Secretary shall not approve such application unless and 
until such application is amended to include such restoration and 
replacement. 
(3) As an aid to the formulation of public policy regarding rail 
transportation, the Secretary shall prepare and keep current a com-
prehensive schedule setting forth transportation facilities and services 
that he believes should be provided by railroads in the northeastern 
region of the United States. In formulating such a schedule the Secre-
tary shall take into consideration the interests of persons and com-
munities affected thereby; existing rail facilities and the pattern of 
service by railroads; and the public interest in a balanced and econom-
ical transportation system responsive to the needs of the public and the 
users of such system. 
1306 
PUBLIC LAW 92-591-OCT. 27,1972 
[86 STAT. 
(4) The Secretary shall provide as a condition of the loan that, in 
consideration of the relief provided by this Act, the railroad shall offer 
to convey to the State, for just compensation, or in the event any such 
railroad is subject to a proceeding under the bankruptcy laws, the 
court having jurisdiction in such bankruptcy proceedings shall direct 
the trustee or trustees or the debtor to offer to convey to the State, for 
just compensation, all of its right, title, and interest free and clear of 
all encumbrances, in any right-of-way, track, and other related real 
and personal property on any branch line within such State which 
has been damaged or destroyed as a result of the natural disasters of 
June 1972; which have not been scheduled for restoration or replace-
ment under the loan program as approved by the Secretary; and 
which such State, or subdivision thereof, proposes to restore or replace. 
STATE AND LOCAL AUTHORITY 
SEC. 5. (a) The Secretary is authorized to make loans pursuant to 
this section to assist regional. State, and local public bodies and agen-
cies thereof in financing the restoration and replacement of railroad 
facilities and equipment damaged or destroyed as a result of the 
natural disasters of June 1972. Eligible facilities and equipment may 
include railroad right-of-way, track, rolling stock, and other real and 
personal property needed for an efficient and coordinated railroad 
transportation system and conveyed in accordance with the provisions 
of section 4(c) (3). 
(b) No such loan shall be provided unless the Secretary determines 
that the applicant has or will have— 
(1) demonstrated a valid need for the establishment or reestab-
lishment of railroad service in the affected area; and 
(2) the technical capability to carry out the proposed project. 
Limitation. 
((.^ ^ ^ y such loau may be made for not to exceed 80 per centum of 
the total costs of the proposed project and shall be subject to such 
other terms and conditions as the Secretary may determine are neces-
sary to carry out the purposes of this section. 
Appropriation. 
((J) There is authorized to be appropriated not to exceed $10,000,000 
to carry out the provisions of this section. Sums so appropriated shall 
remain available through June 30,1975. 
(e) The Secretary shall impose as a condition of anj such loan 
under this section such fair and equitable labor protective arrange-
ments as are described in the Rail Passenger Service Act of 1970, as 
Ante, p. 230. 
amended (45 U.S.C. 565). 
LINE ABANDONMENT 
SEC. 6. (a) Except as provided in subsection (b) of this section, 
and except for the conveyance of facilities pursuant bo subsection 4(c) 
(3), all abandonment of facilities and services shall continue to be 
24 Stat. 379, 
subjcct to the appropriate provisions of the Interstate Commerce Act. 
1 note.^^ ^'^^' 
(^) '^^^ damage or destruction caused by the natural disasters of 
June 1972 to any railroad facility, equipment, or service therefrom, 
of a railroad obtaining assistance under this Act, or any action taken 
pursuant to this Act affecting any railroad, shall not be evidence in 
any proceeding before any Federal agency or in any court in which 
line abandonment is an issue. Any violation of this section shall be 
deemed to be prejudicial. 
86 STAT. ] 
PUBLIC LAW 92-591-OCT. 27, 1972 
1307 
INTEREST RATES 
SEC. 7. Any loan made under this Act shall bear interest at a rate 
determined by the Secretary of the Treasury, taking into considera-
tion the current average market yield on outstanding marketable 
obligations of th^ United States with remaining periods to maturity 
of ten to twelve years reduced by not to exceed 2 per centum per 
annum. In no event shall any loan made under this Act bear interest 
at a rate in excess of 6 per centum per annum. 
DEFERRAL OF PAYMENT 
SEC. 8. Whenever he determines it necessary to insure the provision 
of essential transportation services of a railroad, the Secretary may in 
his discretion provide in the terms and conditions of a loan under 
this Act for deferral of the payment of principal and interest on the 
loan for a period not to exceed ten years from the date tlie loan is made. 
RULES AND REGULATIONS 
SEC. 9. The Secretary shall issue such rules and regulations as are 
appropriate to carry out the purposes of this Act. 
ENFORCEMENT 
SEC. 10. The Secretary shall insure that railroads which obtain 
loans under this Act comply with the provisions of this Act and any 
rules, regulations, or conditions imposed by the Secretary pursuant 
to this Act. In the event of any failure to comply with such pro-
visions, rules, regulations, or conditions, the Secretary may take such 
enforcement action as he deems appropriate including a declaration 
that the obligation of applicant railroads is immediately due and pay-
able as a claim of the United States without regard to any other pro-
vision of the loan or of this Act. 
REPORTS 
SEC. 11. The Secretary shall, within one year after enactment of this 
Act, report to the President and to the Congress with respect to his 
activities pursuant to this Act, including an evaluation of the financial 
conditions of railroads which obtained loans under this Act and includ-
ing an evaluation of the impact of this Act on the condition of the rail 
facilities and services described in the schedule prepared under sub-
section 4(c)(1) of this Act. Such report shall also include recom-
mendations, if any, for additional legislation action. 
AUDIT 
SEC. 12. The Comptroller General of the United States, or any of his 
duly authorized representatives, shall have access to such information, 
books, records, and documents as he determines necessary to effectively 
audit financial transactions and operations carried out by the Secretary 
in the administration of this Act. The Comptroller General shall make 
Reports to Con-
such reports to the Congress on the results of any such audits as are ^^^^^' 
appropriate. 
1308 
PUBLIC LAW 92-592-OCT. 27,1972 
[86 STAT. 
41 Stat. 494; 
79 Stat. 263. 
IXTERSTATE COMMERCE COMMISSION APPROVAL 
SEC. 13. A railroad qualifying for a loan or loans under the provi-
sions of this Act shall not be required to comply with the provisions of 
section 20a of the Interstate Commerce Act (49 U.S.C. 20a) with 
respect to such loan or loans. 
Approved October 27, 1972. 
October 27, 1972 
[S. 1852] 
Public Law 92-592 
AN ACT 
' 
To establish the Gateway National Recreation Area in the States of New York 
and New Jersey, and for other purposes. 
Gateway Nation-
al Recreation 
Area, N.Y.-N.J. 
Establishment. 
Boundary revi-
sions, publication 
in Federal Regis-
ter. 
Lands, waters, 
acquisition. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress asseinhled^ That in order to 
preserve and protect for the lise and enjoyment of present and future 
generations an area possessing outstanding natural and recreational 
features, the Gateway National Recreation Area (hereinafter referred 
to as the "recreation area") is hereby established. 
(a) The recreation area shall comprise the following lands, waters, 
marshes, and submerged lands in the New York Harbor area generally 
depicted on the map entitled "Boundary Map, Gateway National Rec-
reation Area,-' numbered 951-40017 sheets 1 through 3 and dated 
May, 1972: 
(1) Jamaica Bay Unit—including all islands, marshes, hassocks, 
submerged lands, and watei-s in Jamaica Bay, Floyd Bennett 
Field, the lands generally located between highway route 27A and 
Jamaica Bay, and the area of Jamaica Bay up to the shoreline of 
John F. Kennedy International Airport; 
(2) Breezy Point Unit—^the entire area between the eastern 
boundary of Jacob Riis Park and the westernmost point of the 
peninsula; 
(3) Sandy Hook Unit—the entire area between Highway 36 
Bridge and the northernmost point of the peninsula; 
(4) Staten Island Unit—including Great Kills Park, Miller 
Field (except for approximately 26 acres which are to be made 
available for public school purposes), Fort Wadsworth, and the 
waterfront lands located between the streets designated as Cedar 
Grove Avenue, Seaside Boulevard, and Drury Avenue and the 
bay from Great Kills to Fort Wadsworth; 
(5) Hoffman and Swinburne Islands; and 
(6) All submerged lands, islands, and waters within one-fourth 
of a mile of the mean low water line of any waterfront area 
included above. 
(b) The map referred to in this section shall be on file and avail-
able for public inspection in the offices of the National Park Service, 
Department of the Interior, "Washington, District of Columbia. After 
advising the Committees on Interior and Insular Affairs of the United 
States House of Representatives and the United States Senate in 
writing, the Secretary of the Interior (hereinafter referred to as the 
"Secretary") is authorized to make minor revisions of the boundaries 
of the recreation area when necessary by publication of a revised draw-
ing or other boundary description in the Federal Register. 
SEC. 2. (a) Within the boundaries of the recreation area, the Secre-
tary may acquire lands and waters or interests therein by donation, 
purchase or exchange, except that lands owned by the States of New 
York or New Jersey or any political subdivisions thereof may be 
acquired only by donation.