Joint resolution to provide for the continued operation of the transportation properties owned or operated by Penn Central Transportation Co., to protect the security interest of the United States in such properties and to provide for the payment of just and reasonable compensation therefor.

Establishes a Commission on Railroad Transportation in the Northeast to keep itself closely informed on all developments in the Matter of Penn Central Transportation Company, Debtor, Numbered 70-347, United States District Court for the Eastern District of Pennsylvania.

Provides that whenever the Commission finds that there is no reasonable prospect of achieving a traditional income-based reorganization of the Company without the abandonment of subsidization of lines of road reasonably needed for useful transportation or the reduction of its work force to a degree not consistent with efficient, nonburdensome and safe operations, or the subsidization of intercity or commuter passenger operations to a degree more favorable than those generally prevailing, then the Commission shall so determine and declare.

Establishes a Federal corporation to be known as the Northeast Transportation Authority.

Provides that in the event the Commission makes the above determination and declaration, then all property, real or personal, owned or operated under the direction of the trustees of the Company and which is used or useful in the conduct of transportation shall become the property of the United States of America, and title thereto, with power to deal therewith, shall be vested in the Northeast Transportation Authority.

Directs the Commission to negotiate with bankruptcy trustees of the Company in an effort to agree upon a sum of money that will constitute just and reasonable compensation for such property passing to the United States.

Provides that the trustees shall distribute the transportation properties of the debtor together with the proceeds of liquidation of such other properties as the debtor may own, to the creditors and holders of other interests in the debtor in accordance with the laws applicable to bankruptcies and under the direction of the bankruptcy court.

Provides that the Authority shall be deemed a common carrier, and shall be subject to all provisions of the Interstate Commerce Act.

Provides that the primary objective of the Northeast Transportation Authority's operations shall be to provide the public with the most economic, attractive, safe, and useful railroad transportation service that can be furnished, while maintaining rates of pay, rules, and working conditions for employees at a level not less than that prevailing in the railroad industry in the United States.

Authorizes to be appropriated such sums as may be necessary to carry out this Act, together with such sums as may be shown from time to time to be necessary to conduct the operations of the Authority in accordance with this Act.