SCHEDULE 14A INFORMATION PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934 Filed by the Registrant / / Filed by a Party other than the Registrant /X/ Check the appropriate box: / / Preliminary Proxy Statement / / Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) / / Definitive Proxy Statement /X/ Definitive Additional Materials / / Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 CONRAIL INC. (NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) NORFOLK SOUTHERN CORPORATION (NAME OF PERSON(S) FILING PROXY STATEMENT, IF OTHER THAN THE REGISTRANT) Payment of Filing Fee (Check the appropriate box): /X/ No fee required. / / Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: / / Fee paid previously with preliminary materials. / / Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: (2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed: [Advertisement] TO CONRAIL SHAREHOLDERS: Norfolk Southern is committed to you. Norfolk Southern will buy 9.9% of Conrail's shares for $115 per share in cash after defeat of the "opt out" and adjournment proposals on January 17. In a continuing effort to cram down CSX's inferior offer, Conrail and CSX are now suggesting that Conrail shareholders will have to wait until 1999 to benefit from Norfolk Southern's superior offer. That is not true. Norfolk Southern will promptly amend its existing tender offer to purchase Conrail's common and ESOP preferred shares representing 9.9% of Conrail's outstanding common shares (the most that we can purchase without triggering the Poison Pill) after shareholders reject Conrail's proposal to "opt out" of the important protections provided by the Pennsylvania Fair Value Statute. The 9.9% offer would not be subject to termination of the Conrail/CSX merger agreement and would not require any action by Conrail's board. Norfolk Southern will tender for the remaining shares promptly after the purchase. SURFACE TRANSPORTATION BOARD DECISION The Surface Transportation Board decided last week that "the lock-out provision would in no way preclude Board approval . . . of NS/Conrail merger . . . or the consummation of such a merger, if approved." Based on the procedural schedule anticipated by the Surface Transportation Board, the merger case will be decided in late 1997 or early 1998. That means the lock-out clause will cease to have any practical effect a year earlier than CSX would have you believe. Ask yourself which offer benefits you. NORFOLK SOUTHERN'S SUPERIOR CSX'S INFERIOR "CRAM DOWN" OFFER OFFER $115 per share. $101.29 nominal blended value per share.* 100% cash. Only 25% cash for remaining Conrail shares. No continued equity risk. The value of the back-end portion of the offer will fluctuate with the price of CSX stock. There is no downside protection. Consistent with the purpose of Exactly the kind of two- the Pennsylvania Fair Value tiered, coercive offer that Statute. the Pennsylvania Fair Value Statute was intended to prevent. * Based on the closing price of CSX common stock on January 13, 1997. Assumes CSX preferred stock is worth $16 per share. [Graphic: Checkmark in box above the words "VOTE AGAINST"] PROTECT YOUR INTERESTS. VOTE NOW AGAINST CONRAIL'S PROPOSALS TO "OPT OUT" OF PENNSYLVANIA'S FAIR VALUE STATUTE AND TO ADJOURN THE SPECIAL MEETING. Vote now on Norfolk Southern's GOLD proxy card AGAINST Conrail's proposals. Be sure Norfolk Southern receives your proxy before January 17. [Norfolk Southern Logo] Important: If you have any questions, please call our solicitor, Georgeson & Company Inc. toll free at 800-223-2064. Banks and brokers call 212-440-9800. January 15, 1997