Clarence B. Neubauer, 80, a retired assistant vice president of the Southern Railway Co., died of a kidney ailment Saturday at Georgetown University Hospital.

A native of Cincinnati, Ohio, Mr. Neubauer began working for Southern in 1917 as a clerk in the auditor's office in Cincinnati. In 1929 he was promoted to auditor, and three years later he transferred to Washington to hold the same position here.

In 1938 Mr. Neubauer became assistant to the vice president in charge of materials and supplies, and in 1952 he rose to the position of assistant vice president. He retired in 1967.

Mr. Neubauer served in the U.S. Navy for nine months during World War I and attended classes at Xavier University in CIncinnati during the 1920s.

Surviving are his wife, Verra M., of the home in Northwest four children, Mildred N. of the home; John C. of Springfield, Vera Claire Pekin of San Diego, Calif., and sister Camille Neubauer, S.P., of Washington; a brother, Albert H., of Cincinnati; four sisters, Gertrude Buchheid, Julia Burtschy, Alma Schneider, all of Cincinnati and Grace Ibold of Poway, Calif., and eight grandchildren.

The family asks that expressions of sympathy be made to the American Kidnsy Fund.