Form: 4

Statement of changes in beneficial ownership of securities

November 10, 1997

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4: Statement of changes in beneficial ownership of securities

Published on November 10, 1997






FORM 4 U.S. SECURITIES AND EXCHANGE COMMISSION OMB APPROVAL
WASHINGTON, D.C. 20549 OMB Number 3235-0287
/ / Check this box if no longer Expires: September 30, 1998
subject to section 16. Form 4 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Estimated average burden
or Form 5 obligations may hours per response.....0.5
continue. See Instruction 1(b). Filed pursuant to Section 16(a) of the Securities
Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(f)
of the Investment Company Act of 1940




1. Name and Address of Reporting Person

Merrill Lynch, Pierce, Fenner & Smith Incorporated
- --------------------------------------------------
(Last) (First) (Middle)

World Financial Center - North Tower
250 Vesey Street
- --------------------------------------------------
(Street)

New York NY 10281
- --------------------------------------------------
(City) (State) (Zip)



2. Issuer Name and Ticker or Trading Symbol

MotivePower Industries Inc., fka MK Rail Corporation (MPO)
- ----------------------------------------------------------



3. IRS or Social Security 4. Statement for
Number of Reporting Month/Year
Person (Voluntary)
#13-5674085 10/97
---------------------------

5. If Amendment,
Date of Original
(Month/Year)



6. Relationship of Reporting Person to Issuer
(Check all applicable)

____ Director ____ 10% Owner

Officer (give X Other (specify
---- title below) ---- below)*

*Deemed member of group
- ----------------------------------------------------------

7. Individual or Joint/Group Filing (Check Applicable
Line)

____ Form filed by One Reporting Person
X Form filed by More than One Reporting Person
----






TABLE I -- NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED


1. Title of Security 2. Trans- 3. Trans- 4. Securities Acquired (A) 5. Amount of 6. Owner- 7. Nature
(Instr. 3) action action or Disposed of (D) Securities ship of In-
Date Code (Instr. 3, 4 and 5) Beneficially Form: direct
Year) (Instr. 8) Owned at Direct Bene-
(Month/ End of (D) or ficial
Day/ Month Indirect Owner-
Year) (Instr. 3 and 4) (I) ship
------------------------------------------
Code V Amount (A) or Price
(D)


Common Stock, $.01 par value 9/30/97 S 17,000 D 25.00 D
Common Stock, $.01 par value 9/30/97 S 4,500 D 25.06 D
Common Stock, $.01 par value 9/30/97 S 3,500 D 25.13 D
Common Stock, $.01 par value 10/01/97 S 2,200 D 25.31 D
Common Stock, $.01 par value 10/01/97 S 200 D 25.25 D
Common Stock, $.01 par value 10/01/97 S 2,700 D 25.13 D
Common Stock, $.01 par value 10/03/97 S 7,500 D 26.13 D
Common Stock, $.01 par value 10/03/97 S 100 D 26.00 D


*If the form is filed by more than reporting person, see Instruction 4(b)(v).
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

(Print or Type Responses)


Page 1 of 5
SEC 1474(7-96)
FORM 4 (CONTINUED)

1. Name and Address of Reporting Person

Merrill Lynch, Pierce, Fenner & Smith Incorporated
- --------------------------------------------------
(Last) (First) (Middle)

World Financial Center - North Tower
250 Vesey Street
- --------------------------------------------------
(Street)

New York NY 10281
- --------------------------------------------------
(City) (State) (Zip)



2. Issuer Name and Ticker or Trading Symbol

MotivePower Industries Inc., fka MK Rail Corporation (MPO)
- ----------------------------------------------------------



3. IRS or Social Security 4. Statement for
Number of Reporting Month/Year
Person (Voluntary)
#13-5674085 10/97
---------------------------

5. If Amendment,
Date of Original
(Month/Year)



6. Relationship of Reporting Person to Issuer
(Check all applicable)

____ Director ____ 10% Owner

Officer (give X Other (specify
---- title below) ---- below)*

*Deemed member of group
- ----------------------------------------------------------

7. Individual or Joint/Group Filing (Check Applicable
Line)

____ Form filed by One Reporting Person
X Form filed by More than One Reporting Person
----





TABLE I -- NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED


1. Title of Security 2. Trans- 3. Trans- 4. Securities Acquired (A) 5. Amount of 6. Owner- 7. Nature
(Instr. 3) action action or Disposed of (D) Securities ship of In-
Date Code (Instr. 3, 4 and 5) Beneficially Form: direct
Year) (Instr. 8) Owned at Direct Bene-
(Month/ End of (D) or ficial
Day/ Month Indirect Owner-
Year) (Instr. 3 and 4) (I) ship
------------------------------------------
Code V Amount (A) or Price
(D)

Common Stock, $.01 par value 10/03/97 S 1,000 D 25.75 D
Common Stock, $.01 par value 10/08/97 S 2,000 D 25.00 D
Common Stock, $.01 par value 10/17/97 S 25,000 D 25.50 D
Common Stock, $.01 par value 10/17/97 S 56,500 D 26.00 D
Common Stock, $.01 par value 10/20/97 S 6,000 D 26.50 D
Common Stock, $.01 par value 10/20/97 S 3,000 D 26.56 D
Common Stock, $.01 par value 10/20/97 S 2,000 D 26.75 D
Common Stock, $.01 par value 10/20/97 S 4,300 D 26.81 D
Common Stock, $.01 par value 10/20/97 S 6,700 D 26.88 D
Common Stock, $.01 par value 10/20/97 S 3,000 D 27.00 D
Common Stock, $.01 par value 10/20/97 S 60,000 D 26.75 D
Common Stock, $.01 par value 10/20/97 S 25,000 D 26.00 D
Common Stock, $.01 par value 10/21/97 S 25,000 D 27.25 D
Common Stock, $.01 par value 10/21/97 S 25,000 D 27.50 D
Common Stock, $.01 par value 10/21/97 S 25,000 D 27.75 D
Common Stock, $.01 par value 10/21/97 S 25,000 D 28.00 D

* If the form is filed by more than reporting person, see Instruction 4(b)(v).
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

(Print or Type Responses)


Page 2 of 5
SEC. 1474 (7-96)

FORM 4 (CONTINUED)

1. Name and Address of Reporting Person

Merrill Lynch, Pierce, Fenner & Smith Incorporated
- --------------------------------------------------
(Last) (First) (Middle)

World Financial Center - North Tower
250 Vesey Street
- --------------------------------------------------
(Street)

New York NY 10281
- --------------------------------------------------
(City) (State) (Zip)



2. Issuer Name and Ticker or Trading Symbol

MotivePower Industries Inc., fka MK Rail Corporation (MPO)
- ----------------------------------------------------------



3. IRS or Social Security 4. Statement for
Number of Reporting Month/Year
Person (Voluntary)
#13-5674085 10/97
---------------------------

5. If Amendment,
Date of Original
(Month/Year)



6. Relationship of Reporting Person to Issuer
(Check all applicable)

____ Director ____ 10% Owner

Officer (give X Other (specify
---- title below) ---- below)*

*Deemed member of group
- ----------------------------------------------------------

7. Individual or Joint/Group Filing (Check Applicable
Line)

____ Form filed by One Reporting Person
X Form filed by More than One Reporting Person
----




TABLE I -- NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED


1. Title of Security 2. Trans- 3. Trans- 4. Securities Acquired (A) 5. Amount of 6. Owner- 7. Nature
(Instr. 3) action action or Disposed of (D) Securities ship of In-
Date Code (Instr. 3, 4 and 5) Beneficially Form: direct
Year) (Instr. 8) Owned at Direct Bene-
(Month/ End of (D) or ficial
Day/ Month Indirect Owner-
Year) (Instr. 3 and 4) (I) ship
------------------------------------------
Code V Amount (A) or Price
(D)

Common Stock, $.01 par value 10/22/97 S 16,000 D 28.50 D
Common Stock, $.01 par value 10/28/97 S 1,500 D 25.63 D
Common Stock, $.01 par value 10/28/97 S 300 D 25.56 D
Common Stock, $.01 par value 10/28/97 S 1,500 D 25.50 D
Common Stock, $.01 par value 10/28/97 S 500 D 25.44 D
Common Stock, $.01 par value 10/28/97 S 500 D 25.38 D
Common Stock, $.01 par value 10/29/97 S 7,600 D 25.94 D
Common Stock, $.01 par value 10/29/97 S 3,000 D 26.00 D
Common Stock, $.01 par value 10/29/97 S 10,000 D 26.13 D
Common Stock, $.01 par value 10/29/97 S 500 D 26.06 D
Common Stock, $.01 par value 10/29/97 S 1,500 D 25.88 D
Common Stock, $.01 par value 10/30/97 S 7,900 D 24.88 D
Common Stock, $.01 par value 10/30/97 S 4,000 D 24.94 D
Common Stock, $.01 par value 10/30/97 S 10,200 D 25.00 D
Common Stock, $.01 par value 10/30/97 S 2,200 D 25.13 D
Common Stock, $.01 par value 10/30/97 S 200 D 25.19 156,372 D
Common Stock, $.01 par value 156,372 I *

* If the form is filed by more than reporting person, see Instruction 4(b)(v).
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

(Print or Type Responses)



Page 3 of 5
SEC 1474(7-96)

FORM 4 (continued)




Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)


1. Title of 2. Conver- 3. Trans- 4. Transac- 5. Number of Deriv- 6. Date Exer- 7. Title and Amount of Under
Derivative sion or action tion ative Securities cisable and Ex- lying Securities
Security Exercise Date Code Acquired (A) or piration Date (Instr. 3 and 4)
(Instr. 3) Price of (Instr. 8) disposed of (D) (Month/Day/
Deriv- (Month/ Year)
ative Day/ -----------------------------------------------
Security Year) Date Expira- Amount or
--------------------------------- Exer- tion Number of
Code V (A) (D) cisable Date Title Shares



(table continued)

1. Title of 8. Price 9. Number 10. Owner- 11. Na-
Derivative of of Deriv- ship ture
Security Deriv- ative Form direct
(Instr. 3) ative Secur- of Bene-
Secur- ities De- ficial
ity Bene- rivative Own-
(Instr. ficially Secu- ership
5) Owned rity: (Instr. 4)
at End Direct
of (D) or
Month Indi-
(Instr. 4) rect (I)
(Instr. 4)



Explanation of Responses:

* The Common Stock was acquired by Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("MLPF&S"), a direct, wholly-owned subsidiary of Merrill Lynch &
Co., Inc. ("ML&Co."), pursuant to an order of the United States Bankruptcy
Court for the District of Delaware, dated August 26, 1996, confirming the
First Amended Plan of Reorganization of Morrison Knudsen Corporation ("MKC")
under Chapter 11 of the Bankruptcy Code (the "Plan") in satisfaction of
certain claims against MKC. The Plan required creditors of MKC, including
MLPF&S, to be bound by the terms of a Stockholders Agreement dated as of June
20, 1996. MLPF&S may be deemed to be a party to the Stockholders Agreement
with certain other stockholders (the "Stockholders") pursuant to which the
shares of Common Stock owned by MLPF&S and the Stockholders must be voted for
certain nominees for election to the board of directors and certain transfer
restrictions apply to MLPF&S and the Stockholders. Accordingly, MLPF&S and
the Stockholders may be deemed to constitute a group for purposes of Section
13(d)(3) of the Exchange Act. The Reporting Persons disclaim beneficial
ownership of the shares of Common Stock held by the Stockholders and disclaim
that they constitute a group with the other Stockholders for purposes of
Section 13(d)(3) of the Exchange Act.



**Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Merrill Lynch, Pierce, Fenner & Smith Incorporated


/s/ Andrea Lowenthal November 7, 1997
- ------------------------------------------------ -----------------------
Andrea Lowenthal*** Date
Attorney-In-Fact


Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedure.

*** Signed pursuant to a power of attorney, dated January 12, 1996, included
as Exhibit 3 to the September 1996 Schedule 13D filed by MLPF&S for MK Rail
Corporation (now known as MotivePower Industries, Inc.) and incorporated
herein by reference.
Page 4 of 5
SEC 1474 (8/92)

FORM 4 (continued)

JOINT FILER INFORMATION

Name: Merrill Lynch & Co., Inc.

Address: World Financial Center - North Tower
250 Vesey Street
New York, New York 10281

Designated Filer: Merrill Lynch, Pierce, Fenner & Smith Incorporated

Issuer & Ticker Symbol: MotivePower Industries, Inc., f/k/a MK Rail
Corporation (MPO)

Date of Event
Requiring Statement: October 31, 1997

Signature: /s/ Andrea Lowenthal
------------------------------------------
Andrea Lowenthal*
Attorney-In-Fact



* Signed pursuant to a power of attorney, dated November 17, 1995,
included as Exhibit B to the Schedule 13G filed by Merrill Lynch & Co.,
Inc. for Walden Residential Properties, Inc. and incorporated herein by
reference.



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