U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
1. Name and Address of Reporting Person
CSX Corporation
One James Center
901 East Cary Street
Richmond, Virginia 23219-4031
USA
2. Date of Event Requiring Statement (Month/Day/Year)
10/14/96
3. IRS or Social Security Number of Reporting Person (Voluntary)
62-1051971
4. Issuer Name and Ticker or Trading Symbol
Conrail Inc.
CRR
5. Relationship of Reporting Person to Issuer (Check all applicable)
( ) Director (X) 10% Owner ( ) Officer (give title below) ( ) Other
(specify below)
6. If Amendment, Date of Original (Month/Day/Year)
<TABLE>
<CAPTION>
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Table I -- Non-Derivative Securities Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1. Title of Security |2. Amount of |3. Ownership |4. Nature of Indirect |
| Securities | Form: | Beneficial Ownership |
| Beneficially | Direct(D) or | |
| Owned | Indirect(I) | |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C>
___________________________________________________________________________________________________________________________________|
<CAPTION>
___________________________________________________________________________________________________________________________________
Table II -- Derivative Securitites Beneficially Owned |
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1.Title of Derivative |2.Date Exer- |3.Title and Amount | |4. Conver-|5. Owner- |6. Nature of Indirect |
Security | cisable and | of Underlying | |sion or |ship: | Beneficial Ownership |
| Expiration | Securities | |exercise |Form of | |
| Date(Month/ |-----------------------|---------|price of |Deriv- | |
| Day/Year) | |Amount |deri- |ative | |
| Date | Expira- | |or |vative |Security: | |
| Exer- | tion | Title |Number of|Security |Direct(D) or | |
| cisable | Date | |Shares | |Indirect(I) | |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C> <C> <C> <C> <C>
Option (see below) |(see belo|(see belo|Common Stock |15,955,47|$92.50 |D | |
|w) |w) | |7 | | | |
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___________________________________________________________________________________________________________________________________|
</TABLE>
Explanation of Responses:
In connection with an Agreement and Plan of Merger (the "Merger
Agreement"), dated as of October 14, 1996, between CSX Corporation (the
"Reporting Person"), Green Acquisition Corp. and Conrail Inc. (the "Issuer"),
the Reporting Person and the Issuer entered into a Stock Option
Agreement, dated as of October 14, 1996, providing for the option described
above. The option is exercisable only upon the occurrence of certain
events described in the Stock Option Agreement and expires upon the occurrence
of certain events described in the Stock Option Agreement. The
number of shares of common stock of the Issuer purchasable by the Reporting
Person under the option will be adjusted under certain circumstances as may
be necessary so that the number of shares purchasable by the Reporting Person
upon exercise of the option at the time of such exercise equals 19.9% of the
outstanding shares of Common Stock of the Issuer at such time. Prior to such
exercise, the Reporting Person expressly disclaims beneficial
ownership of the shares of Common Stock of the Issuer which are purchasable by
the Reporting Person upon exercise of such option.
SIGNATURE OF REPORTING PERSON
/s/ Mark G. Aron
CSX Corporation
By: Mark G. Aron
Title: Executive Vice President -
Law and Public Affairs
DATE
10/24/96
