How was the Board of Trunstees and the President of Conrail under Federal ownership chosen?

Trains Magazine General Discussion
1

Was it by the president and by the consent of congress like Amtrak board is chosen now?

2

No. The Board of ConRail was selected by the holders of the debentures (a kind of bond) and 3 classes of stock - 45 U.S. Code Sec. 741, subsection (d) - Board of Directors.

The President of ConRail was appointed by the Board - 45 U.S. Code Sec. 741, subsection (f) - Officers.

45 U.S. Code Sec. 741 may be found here: https://www.law.cornell.edu/uscode/text/45/741

  • PDN.
3

So basicaly whomever was holding the Bankrupt railroads debt that formed Conrail got a seat on the board of directors in exchange for new bonds and new classes of stock that could not be publicly traded?