Northeast Railroad Restructuring Act

Title I: Northeast Railroad Restructuring Act - Finds that a rail crisis exists in the Northeast where six class I and one class II railroads are in reorganization and the largest railroad, the Penn Central, is on verge of liquidation.

Declares that nationalization of rail freight operations is undesirable and unnecessary to establish a viable rail system in the Northeast.

Title II: Creation of the Northeast Railroad Corporation - Authorizes, the creation of the Northeast Railroad Corporation to be established under the laws of a State and not as an agency of the Federal Government but subject to provisions of this Act.

Authorizes the President to appoint 3 incorporators, with the consent of the Senate, one of whom he shall designate as chairman.

Provides that each incorporator receive compensation of $300 each day of work plus travel and subsistence expenses.

Provides that the President shall appoint a board of advisers of 17 persons and outlines the basis for their selection.

Prohibits the corporation from installing a board of directors to succeed the incorporations if it does not undertake to perform rail service under this Act. Allows the stockholders to elect a board of directors if the corporation undertakes the service.

Authorizes appropriations not to exceed $40,000,000 for fiscal year 1974 for payment to the corporation on such terms as the Secretary of Transportation prescribes.

Grants to the corporation the powers conferred by the laws of the State or States in which they are incorporated and the usual powers granted to a railroad under the laws of any State in which they operate.

Outlines the special powers and functions of the corporation including the right to issue and allocate common and preferred stock to bankrupt or other railroads entering into agreements with the corporation under title III of this Act.

Lists the laws which do not apply to the Corporation: (1) the Interstate Commerce Act; (2) to the extent inconsistent with this Act, Section 77 of the Bankruptcy Act; (3) Federal and State Antitrust laws; (4 to the extent inconsistent with this Act, the Railway Labor Act and the National Labor Relations Act; (5) any State law pertaining to the economic regulation of railroads, including laws pertaining to the merger of railroads; and (6) any State law pertaining to the number of employees to be used on trains.

Title III: Restructuring of the Northeast Rail System - Directs the Secretary to prepare a preliminary report containing his recommendations for the identification of geographic zones in the eastern district rail freight service and the number of railroads to provide such service. Outlines the considerations to be used by the Secretary in determining whether service should be provided.

Provides for the Secretary to make a preliminary report to be published in the Federal Register. Provides that, within 90 days after the enactment of the Act, the Secretary shall issue a final report, together with a summary of the recommendations of those preliminary reports and reasons for not adopting such.

Directs each railroad in the eastern district to submit an inventory of rail facilities within 180 days after enactment of this Act to the Secretary. Directs each bankrupt railroad in the eastern district to provide information required by the Secretary. Allows the Secretary to obtain such information by subpena.

Directs the corporation to prepare a plan for the operation of rail services provided by bankrupt railroads in the eastern district and other railroads with which it negotiated agreements under this Act.

Directs the corporation to enter into agreements: (1) with any railroad in the eastern district for acquisition of rail assets in return for stock of the corporation; (2) with third parties, where appropriate; (3) with representatives of railroad employees; (4) with State and local governments, shippers, and other persons where possible; (5) with financial institutions; and (6) with the National Railroad Passenger Corporation and Commuter Agencies.

Requires that, within 300 days after enactment of this Act, the corporation shall submit to the Secretary the services and agreements for review.

Directs the Secretary to make findings required by this Act within 30 days after he receives the service plan.

Directs the corporation to make amendments to a rejected plan or agreement after the Secretary has rejected the plan.

Allows court review of the agreements negotiated under this Act.

Directs the Secretary to appraise the impact of the decisions of the courts within 15 days after all such decisions and to notify the corporation whether these decisions would permit implementation of a viable service plan.

Title IV: Regulation of Service - Deems the corporation a common carrier by railroad within the meaning of the Interstate Commerce Act.

Defines "corporation" as any corporation established to provide rail service included in the service plan approved by the Secretary.

Allows, after notice, for any bankrupt railroad in the eastern district to abandon operation of any rail service within any zone not designated in the final report under this Act. Allows any bankrupt railroad to transfer rail assets to the corporation and thereafter to abandon operation of any rail service not included in the service plan approved by the Secretary under title III of this Act.

Allows the line to be abandoned if the entity holds open for not less than 120 days after the discontinuance of service an offer to sell the rail line intact for railroad purposes or to contract with any person for continuance of service.

Title V: Federal Income Tax - Provides that, in the transfer of assets of specified railroad corporations as defined under the Bankruptcy Act, there shall be no gain or loss recognized solely in exchange for stock or securities in accordance with an agreement entered into under this Act. Details the transfer transaction procedures.

Title VI: Miscellaneous - States that the provisions of this Act shall be treated severally as to the constitutionality of any provision.

Directs the corporation to keep records on payments received by the corporation under this Act. Directs the Secretary and Comptroller General of the United States or their representatives to have access for purpose of audit and examination of all records of the corporation.

States that nothing in this Act shall preclude State or local taxation. Provides remedies of equitable relief if the corporation violates this Act.