The Penn Central Transportation Company was formed in 1968 through the merger of the Pennsylvania Railroad and the New York Central Railroad. It became one of the largest railroad companies in the United States, operating freight and passenger services across a vast network. However, the company faced significant financial difficulties due to mismanagement and competition from other transportation modes. In 1970, Penn Central filed for bankruptcy, marking one of the largest bankruptcies in U.S. history at that time. The failure of the company led to the creation of the Conrail system in 1976, which aimed to revitalize the Northeast railroads and improve service efficiency.