Opinion ID: 395213
Heading Depth: 2
Heading Rank: 2

Heading: The Nature of the Government Action

Text: 46 In directing service over the lines of a cashless railroad, the ICC orders a financially capable carrier to provide transportation service over the lines of the defaulting carrier for a period of not more than 240 days. This might appear to require extensive alterations in the operation of the defaulting carrier but, in reality, disruption is minimal. The rolling stock, facilities and track of the defaulting carrier continue to be used as though no change had occurred. The employees of the defaulting carrier also continue to perform their duties. When necessary, the directed carrier may supplement the facilities or manpower of the defaulting carrier with additional cars or personnel of its own. But neither the government nor the directed carrier ever takes title to the defaulting carrier's property or, for that matter, takes anything of currently realizable value to the defaulting carrier at any time during the brief period of directed service. 47 Until a cashless railroad receives a certificate of abandonment, it is both unable to operate and unable to convert its assets to cash through liquidation. In the absence of directed service, the lines and facilities of the carrier would merely lie fallow and be subject to further deterioration. They are, in this unused state, of no realizable value to the carrier's shareholders and creditors. Their underlying value is only potential until abandonment is approved and liquidation can commence. At most then, directed service temporarily postpones the carrier's opportunity to liquidate its assets and realize their salvage or other value. This postponement involves no recognizable loss to the defaulting carrier because the government is at the same time subsidizing the discharge of the carrier's public service obligation through directed service. In our view, a temporary delay of this nature, particularly when required by the public's interest in uninterrupted rail service, does not amount to a fifth amendment taking. See Continental Illinois Bank & Trust v. Chicago R.I. & P. Ry., 294 U.S. 648, 55 S.Ct. 595, 79 L.Ed. 1110 (1935) (delayed enforcement of debenture agreements did not raise fifth amendment problems). Hence, we think neither the character of the property involved nor the nature of the government action suggests a fifth amendment taking requiring compensation. 19 48 In addition, we do not perceive the direction of service here by the ICC as a governmental intervention adverse to the Rock Island but rather as governmental action in aid of the Rock Island. Thus, the ICC substitutes the financially capable KCT for the cashless Rock Island in carrying out the obligation of service to the public, which in somewhat different ways, is imposed on both the railroad and the government agency. The ICC's use does not burden the Rock Island. Its use is, instead, responsive to the Rock Island's obligation and relieves that railroad temporarily of its own burden to serve.