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B&LE AND USX REACT TO THIRD CIRCUIT COURT OF APPEALS DECISIONS

 PITTSBURGH, May 28 /PRNewswire/ -- The Bessemer and Lake Erie Railroad (B&LE) and USX Corporation are extremely disappointed by yesterday's decisions of the Third Circuit Court of Appeals which affirmed judgments against B&LE of approximately $498 million plus interest at an annual rate of approximately 8 percent from July 1989.
 B&LE will seek further review of the Court of Appeals findings, which in its opinion disregard or are inconsistent with controlling U.S. Supreme Court precedent, and are in conflict with rulings by the Sixth Circuit Court of Appeals in related litigation arising out of the same antitrust allegations. B&LE will seek a reconsideration by the full panel of the Third Circuit Court of Appeals, and in the event it fails to obtain a reversal, will seek U. S. Supreme Court review.
 The judgments related to alleged antitrust violations by the B&LE and other railroads which were charged with monopolizing the dock handling and inland transportation of iron ore from Lake Erie ports to steel mills in Ohio, Pennsylvania and West Virginia from the mid-1950s to the early 1980s. The B&LE was a wholly owned subsidiary of USX, formerly U. S. Steel Corporation, throughout the period the alleged illegal conduct occurred. It is now a subsidiary of Transtar in which USX has a 44 percent equity interest. These actions were excluded liabilities in the sale of USX's transportation units in 1988, and USX is obligated to reimburse Transtar for judgments paid by the B&LE.
 USX noted that it expects any award to be deductible for income tax purposes. The company noted that in previous accounting periods, $90 million pre-tax had been accrued and that it expects to reserve the remaining balance of the award against the results of USX's U.S. Steel Group (NYSE: X) in the second quarter, despite remaining convinced that the B&LE will ultimately prevail in its position in this litigation.
 -0- 5/28/93
 /CONTACT: William E. Keslar or Don H. Herring, both of USX Corporation, 412-433-6870/
 (X)


CO: Bessemer and Lake Erie Railroad; USX Corporation; Transtar;
 U.S. Steel Group ST: Pennsylvania, Ohio, West Virginia IN: MNG TRN SU:


KC -- PG003 -- 3328 05/28/93 10:22 EDT
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Publication:PR Newswire
Date:May 28, 1993
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