Somewhere, I’ve read that the B&O held some sort of stake in the Reading and CNJ. Can anyone characterize the kind of presence they had? Was it “All your stock are belong to us”, or was it a couple of shares, a seat on the board, or what?
I’ve also read somewhere that the Chessie System or the Chesapeake & Ohio dumped these holdings in the late 1960s or prior to the coming of Conrail. Any further information?
Thanks!
The B&O acquired a controlling interest in the Reading during the period in the very early 1900’s when the B&O was controlled by the PRR. After a short period the PRR was forced to relinquish control of the B&O, but the B&O being weaker was not forced to sell its interest in the RDG. They held this interest which was enough to appoint the President and a majority of the board until the Bankruptcy of the RDG that lead to its inclusion in Conrail. It was the Reading that had a similar controlling interest in the CNJ. Like a set of Dominos the bankruptcy of the CNJ, was the final nail in the coffin of the RDG.
B&O had a minority (48%) interest in Reading, and Reading in turn had a similar interest in CNJ, although I’m not sure of the percentage. Of course, these interests became virtually worthless when both of these roads went into Chapter 77 bankruptcy.