The U.S. gave a qualified OK to a Conrail plan.

The Justice Department said the merger of Conrail and a private carrier would create no antitrust problem as long as the combine sells tracks or makes available operating rights where the two companies currently compete. The Norfolk Southern railroad has been widely reported as the favorite of Transportation Secretary Elizabeth Hanford Dole, but officials said the other two bidders--Alleghany Corp. and an investment group headed by hotel executive J. Willard Marriott--remain in the running to buy the government-owned freight rail line.