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524US2

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516

EASTERN ENTERPRISES v. APFEL

Opinion of O(cid:146)Connor, J.

II
A

Eastern was organized as a Massachusetts business trust
in 1929, under the name Eastern Gas and Fuel Associates.
Its current holdings include Boston Gas Company and a
barge operator. Therefore, although Eastern is no longer
involved in the coal industry, it is “in business” within the
meaning of the Coal Act. Until 1965, Eastern conducted ex-
tensive coal mining operations centered in West Virginia and
Pennsylvania. As a signatory to each NBCWA executed be-
tween 1947 and 1964, Eastern made contributions of over $60
million to the 1947 and 1950 W&R Funds. Brief for Peti-
tioner 6.

In 1963, Eastern decided to transfer its coal-related opera-
tions to a subsidiary, Eastern Associated Coal Corp. (EACC).
The transfer was completed by the end of 1965, and was de-
scribed in Eastern’s federal income tax return as an agree-
ment by EACC to assume all of Eastern’s liabilities arising
out of coal mining and marketing operations in exchange for
Eastern’s receipt of EACC’s stock. EACC made similar
representations in Security and Exchange Commission ﬁl-
ings, describing itself as the successor to Eastern’s coal
business. See App. (CA1) 117–118. At that time, the 1950
W&R Fund had a positive balance of over $145 million.
1966 Annual Report 3, App. (CA1) 1207.

Eastern retained its stock interest in EACC through a
subsidiary corporation, Coal Properties Corp. (CPC), until
1987, and it received dividends of more than $100 million
from EACC during that period. See Brief for Petitioner 6,
n. 13.
In 1987, Eastern sold its interest in CPC to respond-
ent Peabody Holding Company, Inc. (Peabody). Under the
terms of the agreement effecting the transfer, Peabody, CPC,
and EACC assumed responsibility for payments to certain
beneﬁt plans, including the “Beneﬁt Plan for UMWA Repre-
sented Employees of EACC and Subs.” App. 206a, 210a.