Opinion ID: 421082
Heading Depth: 2
Heading Rank: 6

Heading: Potential Harm from Protective Conditions

Text: 138 Having considered the possible need to preserve interchange service at Danville and Yarmouth Junctions, 52 we turn briefly to the possible harm from imposing protective conditions. Canadian National's requested conditions, as described by the ICC, were: 139 [Maine Central] shall preserve and continue at a minimum its practices existing on October 31, 1981 in connection with handling freight traffic over the routes with the Grand Trunk Eastern and at the interchange points at Danville Junction and Yarmouth Junction, ME. Changes in present operating arrangements, schedules of service, blocking and handling of freight traffic interchanged at these junctions shall be made only with the concurrence of Canadian National Railway. 140 Boston & Maine Merger app. B, 366 I.C.C. at 365. The ICC explained that these conditions were relatively narrow in scope and would have little effect on competition, but would reduce Guilford's ability to improve service on its own system: 141 They do not appear to affect rates or diversions [sic], but rather freeze existing practices with respect to operating arrangements, schedules, and the blocking and handling of freight moving over Danville and Yarmouth Junctions in Maine. While the competitive effect of these conditions is not clear, imposition of these conditions would at least reduce [Guilford's] flexibility in improving the service capabilities on its own system. Id. at 352. 53 142 Canadian National urges that its proposed veto over changes in operating arrangements would not freeze existing practices. Canadian National points out that if it used its veto, Guilford could appeal to the Commission, which could grant relief from the condition in a proper case. See Southern Pacific Co.--Merger--Pacific Electric Railway, 354 I.C.C. 100, 109-10 (1977). We see little force to this argument. Guilford would still be burdened by the delay involved in an appeal to the ICC. Thus, as a practical matter, Canadian National's veto would substantially reduce Guilford's flexibility. 143 On the other hand, the ICC is not restricted to choosing between Canadian National's requested conditions and no conditions at all. 54 On the contrary, if the Commission [229 U.S.App.D.C. 44] believes that an unconditioned merger would harm the public interest but finds a proposed condition inappropriate, its duty to advance the public interest requires it to devise appropriate conditions, if such conditions can be developed with reasonable effort. See Baltimore & Ohio Railroad v. United States, 386 U.S. 372, 430, 87 S.Ct. 1100, 1129, 18 L.Ed.2d 159 (1967) (Brennan, J., concurring) ([t]he ICC is not the prisoner of the parties' submissions and must weigh alternatives and make its choice according to its judgment how best to achieve [Congress' policy] goals) (footnotes omitted); Atlantic Coast Line R. Co. v. United States, 48 F.2d 239, 244 (W.D.S.C. 4th Cir.1931) (3-judge court) (It is not only the right but the duty of the commission to impose such conditions as will make the acquisition in the public interest ....), aff'd, 284 U.S. 288, 52 S.Ct. 171, 76 L.Ed. 298 (1932). See also Scenic Hudson Preservation Conference v. FPC, 354 F.2d 608, 620-21 (2d Cir.1965), cert. denied, 384 U.S. 941, 86 S.Ct. 1462, 16 L.Ed.2d 540 (1966). 55 144 The ICC can probably design conditions that will prevent significant deterioration in transit time on the Maine Central/Canadian National route without seriously burdening Guilford. At a minimum, the Commission can require Guilford to give Canadian National advance notice of service changes. It could then permit Guilford to make the changes after an expedited showing to the Commission that the changes will not disrupt joint service with the Canadian National. Alternatively, it could permit the changes unless Canadian National shows that the changes will disrupt its service to the midwest. If appropriate, the Commission can limit the duration of any conditions it imposes. 56 Other possibilities may also occur to the Commission.