(FORTUNE Magazine) – Engineering a New Plan for Conrail As she considered the best way for the government to dispose of its 85% of Consolidated Rail Corporation (Conrail), Transportation Secretary Elizabeth Dole rejected the notion of a public offering (FORTUNE, February 18). Instead she recommended a sale to Norfolk Southern Corp. for $1.2 billion. In Congress the deal faces strong opposition from critics who charge that Norfolk Southern will get back more than the purchase price in tax write-offs. Meanwhile, the investment banking firm of Morgan Stanley has been structuring a deal in which a group of investors would pay the $1.2 billion for Conrail -- and not take the tax breaks. Then the group would offer at least 60% of the stock to the public.