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

DATE: WEDNESDAY, September 13, 1995                   TAG: 9509130043
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

AMTRAK PREDICTS SUBSIDY-FREE FUTURE - IF

The president of Amtrak says his railroad could be weaned from taxpayer operating subsidies soon after the turn of the century if - and it's a big if - it gets some capital help.

The passenger railroad is seeking a share of the federal gasoline tax to solve its money problems.

The railroad is close to finishing this fiscal year in the black, Thomas M. Downs said Tuesday, but only because of $365 million in federal operating subsidies. Those subsidies could be phased out, he said, but Amtrak will continue to need funding help for new locomotives and passenger cars.

His proposal that one-half cent of the gasoline tax be dedicated to Amtrak capital funding drew prompt opposition from the Highway Users Federation, which says money raised from motor fuel taxes should be spent only on roads.

- Associated Press

by CNB