Conrail bidder said Conrail value would fall 50%.

If Conrail does not merge with another railroad, its market value could be cut in half by 1990 because of declining freight business and wear on equipment, Robert B. Claytor, chairman of Norfolk Southern, told a House judiciary subcommittee examining the antitrust implications of a proposed Conrail sale. “The time for the government to get out of the railroad business is now,” said Claytor, whose company is trying to convince Congress to approve its $1.2-billion bid for Conrail.