Gallery - Conrail
Conrail began operations on April 1st, 1976.Conrail consisted of all of the lines from the Penn Central Railway as well as six other bankrupt railroad companies, all of which primarily operated in the northeastern US.
In February, 1976, the US Government passed into law the "Railroad Revitalization and Regulatory Reform Act of 1976", which provided the necessary funding to revitalize the deteriorating freight railway lines, equipment and rolling stock of the seven railways.
In 1998, Conrail itself was split between the Norfolk Southern Railway and CSX Transportation.
In Niagara Falls, Conrail was the operator on the former Canada Southern lines to Detroit, which it had assumed with the overtaking of the Penn Central Railway. In Niagara Falls, these lines included the former New York Central Montrose Yard facilities, as well as the branch to Chippawa.
For more information:
Wikipedia article on Conrail

Conrail scale test car 80061 is shown at Montrose Yard in Niagara Falls. This car was built in 1929 and weighs 90000lbs.
October 17, 1981 - NRM Collection

Conrail 2286 & 6701 are at the top end of Fort Erie yard with caboose 46134, stenciled for Work Train Service Only.
May 9, 1982 - Niagara Railway Museum Inc. Collection

Back when Conrail was still running into Canada on the former New York Central Lines, Conrail torpede tube GP9 #7440 (GMD April 1957 as NYC 6040) and GP7 5824 are seen on the shop track at Montrose Yard in Niagara Falls.
September 3, 1983 - J. Paul Jenter - NRM Collection

We aren't sure of the exact reason why this move was being done, however, it was a rare move, and it was captured on film. We assume that Conrail 2774 was bringing the Alaska Railroad equipment over to the CN for Interchange to head out to Alaska. At this time, the CN boarding house, visible at centre, was still open.
C-mid 1980's - NRM Collection

It's almost spring, and Conrail B23-7 #1957 & 1955 head a train through Niagara Falls for New York.
March 7, 1993 - J. Paul Jenter - Niagara Railway Museum Collection

Conrail GP7 #5824 (GMDD - March 1951, ex-NYC 5824, nee C&O 5726) is at Conrails Montrose Yard in Niagara Falls, Ont. 5824 was scrapped in February 1986 at St.Louis Auto Shredding.
April 1982 - Niagara Railway Museum Collection

Conrail GP9 #7439 (ex-NYC 6039, blt GMDD 1957) leads Conrail GP7 #5825 (ex-C&O #5727, blt GMDD 1951), as they bring their train into Canada from Niagara Falls New York.
August 18, 1977 - NRM Collection