Chessie System – Seaboard Coast Line merger – 1978-80
September 6, 1978
The future merger of Chessie System (Chessie) and Seaboard Coast Line (SCL) was announced and that talks were underway to merge their two railroad systems.
November 14, 1978
CSX Corporation is incorporated in Virginia. The purpose of CSX Corporation is to take control of Chessie and Seaboard. The name “CSX” was used for the incorporation, but was intended to be a temporary, “code name,” according to Hays Watkins.
November 16, 1978
The directors of both SCL and Chessie approve a plan to merge SCL and Chessie into the newly created CSX Corporation. The plan also included giving SCL shareholders 1.35 shares of CSX stock for every share of SCL stock. Chessie shareholders would get one share of CSX for one share of Chessie. Prime Osborn of SCL and Hays Watkins of Chessie announced that the merger into CSX would be a 50-50 partnership.
January 18, 1979
CSX Corporation submits its application to the Interstate Commerce Commission (ICC) to acquire control of Chessie and Seaboard.
February 13, 1979
The shareholders of both Chessie System (Chessie) and Seaboard Coast Line (Seaboard) vote in favor to merge their railroad holding companies into CSX Corporation.
February 15, 1979
The ICC takes up CSX’s application to acquire control of Chessie and Seaboard.
September 25, 1980
The ICC approves CSX’s application to acquire Chessie and Seaboard.
November 1, 1980
The merger of Chessie and Seaboard into CSX Corporation is complete, fulfilling the goal in the creation of CSX: To merge what was viewed as two complementary railway systems that reach from Florida to Canada. CSX’s railroads made up the largest railway system in the country. The first board of directors meeting took place, with 12 directors from Chessie and 12 from Seaboard. CSX “opened its doors” and began operations.
More … to come.
Next up will be the years after 1980 – and a nice references and books list!
