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Supplement dated July 18, 1995
to Prospectus Supplement dated July 14, 1995
GENERAL AMERICAN TRANSPORTATION CORPORATION
1995-1 PASS THROUGH TRUST
The following information supplements and amends the information contained
under the caption "Legal Proceedings and Environmental Matters" in the
Prospectus Supplement dated July 14, 1995, of General American Transportation
Corporation (the "Company") relating to the issuance of the Company's 7.28% Pass
Through Certificates, Series 1995-1. This Supplement should be read in
conjunction with the Prospectus Supplement dated July 14, 1995.
On July 14, 1995, a judgment in the amount of $9.7 million was entered
against the Company by the U.S. District Court for the Northern District of
Illinois in the matter of General American Transportation Corporation v.
Cryo-Trans, Incorporated, a case involving an alleged patent infringement by the
Company in the construction and use of its Arcticar(TM) cryogenically cooled
railcar.
The Company was also permanently enjoined from any further infringement of
the patent as of August 1, 1995. Of the Company's 61,000 railcar fleet, the
injunction affects only 180 railcars, 80 of which are currently on lease and 100
on order. The Company intends to appeal the decision of the District Court and
request the District Court to reduce substantially the judgment as entered to
correct an apparent error in the calculation of damages. Even in the event of an
adverse decision on appeal, the Company does not believe that the costs
associated with its disposition of the affected cars would have a material
adverse effect on the Company. The Equipment that is the subject of the
leveraged lease transactions described in the Prospectus Supplement dated July
14, 1995 does not include any Arcticar(TM) railcars.
