Conrail Names Hillman as Its Acting Chief

Conrail has named Stanley E.G. Hillman acting chairman, chief executive and president pending the selection of a permanent chief executive.

The move followed the death during the weekend of Chairman Richard D. Sanborn, 52, who became president of the Philadelphia-based freight railroad last March and chief executive Jan. 1.

Hillman, 77, previously was president of Chicago-based IC Industries Inc. and chief executive of its Illinois Central Gulf Railroad. IC later became Whitman Corp. and the railroad was spun off.

As a director of Conrail since 1980, Hillman was chairman of the search committee that selected Sanborn last year and served on the committee that recommended Sanborn’s predecessor, L. Stanley Crane, in 1981.

Conrail, the former Consolidated Rail Corp., was spun off by the government to public shareholders in 1987.

Conrail said it would move as quickly as possible to find a permanent chief executive, but added that there was no time frame for the selection. Some analysts said the search could take several months.

“One of (Hillman’s) major priorities, if not his major priority, will be to look for a successor,” said Provident National Bank analyst Andrew Geller.

Shearson Lehman Hutton analyst Burton Strauss said Conrail was in good shape and could weather the sudden loss of Sanborn and the search for a permanent successor.

“The company continues to be in fine shape,” said Geller, citing Conrail’s solid freight traffic levels and productivity gains.

The company, whose routes cover the Northeast and Midwest, has been profitable since 1981, and faces no major problems, analysts said.

Strauss said Hillman’s selection gave no clue whether Conrail would select a permanent chief from inside or outside the company. He declined to speculate on possible contenders.

Several analysts have said candidates might include James Hagen, a former Conrail senior vice president and now a senior executive at CSX Corp.; Santa Fe Southern Pacific Corp. Vice Chairman Jonn Schwartz, and Conrail’s four current senior vice presidents.