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DEAL WOULD CUT SOUTHERN TIER RAIL SERVICE

Key New York state legislators have recommended that the state sign a new agreement that would curtail Southern Tier freight rail service.

State Transportation officials met Thursday with Assemblyman Michael Bragman, chairman of the Transportation Committee, Assembly Majority Leader James Tallon, and Assemblyman William Parment of Jamestown.

The legislators had asked to be briefed on an agreement between the state and the Consolidated Rail Corp. regarding service to the Southern Tier.

Transportation and other officials said the agreement was the last step before Conrail and Canadian Pacific Ltd. announce they have resolved issues blocking the sale of the financially ailing Delaware & Hudson Railway. But Conrail spokesman Bob Libkind said the Southern Tier agreement had no bearing on D&H talks.

The current Southern Tier agreement expires in June 1992. Conrail proposed extending its freight operations until 1998 in exchange for New York's allowing it to curtail service.

Bragman said he was concerned that the deal would transform the leg from Hornell west from a main line into a branch line, but said the Legislature would monitor the situation through next year.

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