Document: 411 U.S. 726 93 S.Ct. 1773 36 L.Ed.2d 620 FEDERAL MARITIME COMMISSION, Petitioner,v.SEATRAIN LINES, INC., et al. No. 71—1647. Argued March 21, 1973. Decided May 14, Syllabus In enacting § 15 of the Shipping Act, 1916, Congress conferred on Federal Maritime Commission (FMC) power to exempt from antitrust laws agreements, or those portions between carriers that create an ongoing arrangement in which both parties undertake continuing responsibilities, and therefore necessitate continuous FMC supervision, but not one-time acquisition-of-assets agreements result one contracting ceasing exist. Pp. 731—746. 148 U.S.App.D.C. 424, 460 F.2d 932, affirmed. Edward G. Gruis, Washington, D.C., for petitioner. Irwin A. Seibel, respondents. Mr. Justice MARSHALL delivered opinion Court. 1 Section 39 Stat. 733, as amended, 46 U.S.C. 814, requires all persons subject Act file with Commission1 every agreement within specified categories reached any other person Act. The section further empowers disapprove, cancel, modify such it finds be unjustly discriminatory, detriment commerce United States, contrary public interest, violative terms Act.2 is directed approve statute expressly provides so approved are laws.3 2 question presently before us whether a contract calls acquisition assets carrier by another creates no obligations 'agreement' meaning this section. some importance, since if contracts Commission, fully applicable them. See Carnation Co. v. Pacific Westbound Conference, 383 213, 86 781, 709 (1966). Cf. States Borden Co., 308 188, 60 182, 84 L.Ed. 181 (1939). But cf. Navigation Cunard S.S. 284 474, 52 247, 76 408 (1932); Far East Conference 342 570, 72 492, 96 576 (1952). On hand, they Commission's jurisdiction, may them even though laws, although must take principles into account reaching its decision. Volkswagenwerk Aktiengesellschaft FMC, 390 261, 273—274, 88 929, 936—937, 19 1090 (1968); Aktiebolaget Svenska Amerika Linien, 238, 244—246, 1005, 1009—1010, 1071 (1968). 3 case, Court Appeals District Columbia Circuit concluded did confer jurisdiction upon discrete agreements. holding, followed prior decision R. J. Reynolds Tobacco 325 F.Supp. 656 (N.J.1971), declined follow Ninth holding had jurisdiction. Matson 405 796 (CA9, 1968). We granted certiorari order resolve conflict because case posed important issue concerning interface regulatory powers. conclude 15, intend invest shield liability merger impose responsibilities. Rather, intended over only created rights responsibilities which, therefore, necessitated supervision. affirm judgment below. 4 * This was initiated when respondent Seatrain Lines, Inc. (Seatrain) filed protest against (PFEL) Oceanic Steamship (Oceanic), also respondents here, whereby agreed sell PFEL. Under agreement, promised transfer entire fleet related equipment together Oceanic's interest two container ships then being constructed employees Although formally merge PFEL retained corporate existence, left shell corporation wholly without assets. However, undertook obligation re-enter business compete PEFL. October 6, 1970, notified accompanied notification express statement that, their view, published notice see 35 Fed.Reg. 16114, allowed 10 days interested request hearing. alleging potential competitor would have anticompetitive consequences and, hence, public-interest standard statute. 5 Instead hearing investigate these allegations, however, issued summary denying investigation approving agreement. held '(w)hile opportunity hearing, approval, there requirement law mere filing sufficient require grant approval protested agreement.' Finding 'the likelihood impact at (Seatrain's) operations might matter speculation,' 'Seatrain has standing matter, substance.'4 6 After Seatrain's petition reopen denied, appealed ruling Appeals.5 argued required hold objection, while statutory respondent,6 PFEL, intervenors, lacked comprehensive opinion, found unnecessary reach issue, 'lacks under arrangements type involved do continued existence participation arrangements.' 441, 949 (1972). vacated removed docket. came here certiorari. 409 1058, 550, 34 510 II 7 At outset, recognized language neither clearly embraces nor excludes situation fundamentally different relied heavily petitioner, where we context 'simply does square structure statute.' U.S., 275, S.Ct., 937. ambiguous scope read light history governing presumptions. 8 By terms, covered 'file immediately true copy, or, oral, complete memorandum, . modification cancellation thereof' falls seven categories. These 9 '(1) fixing regulating transportation rates fares; (2) giving receiving special rates, accommodations, privileges advantages; (3) controlling, regulating, preventing, destroying competition; (4) pooling apportioning earnings, losses, traffic; (5) allotting ports restricting otherwise number character sailings ports; (6) limiting way volume freight passenger traffic carried; (7) manner providing exclusive, preferential, cooperative working arrangement.' None refers imposes indeed, effectively destroys vigorously argues can interpreted falling third category—which concerns 'controlling, competition.'7 Without more, inclined agree many probably fit category. broad reading category our frequently expressed view exemptions strictly construed, e.g., McKesson & Robbins, Inc., 351 305, 316, 937, 943, 100 1209 (1956), '(r)epeals implication strongly disfavored, been cases plain repugnancy provisions.' Philadelphia National Bank, 374 321, 350 351, 83 1715, 1735, 915 (1963) (footnotes omitted). As observed recently: 'When relationships governed first instance coercion, courts hesitant override fundamental national policies embodied laws.' Otter Tail Power 410 366, 374, 1022, 1028, 359 (1973). Silver New York Stock Exchange, 373 341, 1246, 389 (1963); Pan American World Airways, 371 296, 476, California FPC, 369 482, 82 901, 54 (1962); principle led construe conferring 'limited exemption' fact 'antitrust represent economic policy.' 219, 218, 785, 784.8 11 Our reluctance broadly include bolstered It should noted categories, six limited Indeed, 'controlling,' 'regulating' 'preventing' competition—all activities. Only reference destruction competition supports provision cover one-time, transactions. final, 'in exclusive noted, last meant catchall provision, 'intended summarize covered.' U.S.App.D.C., 427, F.2d, 935. FMB Isbrandtsen 356 481, 78 851, 858, 926 (1958). is, course, familiar canon construction clauses bringing similar specifically enumerated. Sutherland, Statutes Statutory Construction 4908 seq. (3d ed. 1943) cited. Since explicitly 'working arrangement(s)' (emphasis added), reasonable limitation apply enumerated well.9 12 especially compelling rest scheme, simply make sense encompass creating obligations. For example, directs 'disapprove, cancel previously it, discriminatory unfair carriers, shippers, exporters importers, foreign competitors, operate violation chapter' added). thus envisions supervisory role invests disallow after period time initially permitted. hard how exercise function supervise. And think unlikely permit allow go effect, sometime indefinite future, resuscitate expired company unscramble disapprove approved. 13 Similarly, '(t)he shall finding inadequate policing it' makes unless police. 'continued approval' permitted 'between members same conference conferences serving trades naturally competitive, each carrier, conferences, conference, retains right independent action,' suggests relationship parties. 'adopt maintain procedures promptly fairly considering shippers' requests complaints' understood 14 short, includes arrangements, words context, undeniably clear ongoing, perform. concluded, whole paragraph listing covered, shows intent authority deal nature.' III supported legislative Congress' treatment industries contemporaneous statutes. 490, 857, most contained so-called Alexander Report culminated shipping industry House Committee Merchant Marine Fisheries chaired Congressman Alexander. Fisheries, Agreements Affiliations Foreign Domestic Trade, H.R.Doc.No.805, 63d Cong., 2d Sess. (1914) (hereinafter Report). legislation designed carry out Report's recommendations failed pass, H.R. 17328, Sess., substantially bill enacted next write proposals law. H.R.Rep.No.659, 64th 1st 27; S.Rep.No. 689, 7. 16 examining 80 steamship 'practically established lines operating work harmonious cooperation, either through written oral gentlemen's understandings.' 281. network secret, provided system suppressing competition. id., 282—295. described resulting competitive industry, 17 'The primary object (the) prevent new organized trade crush existing refuse comply conditions prescribed combination, reasons, acceptable conference. methods adopted eliminate show futility weak line attempting enter opposition combined united resorting use 'fighting ship,' unlimited rate cutting, soon exhaust resources antagonists. distributing loss war several constituent suffers proportionately much smaller than fighting group. Moreover, federated conduct struggle comfortable assurance following retirement competing line, position reimburse themselves increase rates. To generally means now enjoying it. powerful hope fight trade, inevitable result, successful, will join combination exist virtue understanding.' 304—305. 18 Yet despite findings, decided recommending outright banning system. Instead, chose place government supervision administrative agency various arrangements. Committee's reasons crucial us. that: '(O)pen assured length ordering terminated. ocean happy medium peace engage trade. Most numerous discussed foregoing report were outcome wars, truce contending lines. terminate necessarily bring about results: wars mean elimination survival strong, avoid costly struggle, consolidate common ownership. Neither prevented legislation, monopoly effective, believed more so, Id., 416. 20 Thus, continuation system, curb abuses requiring feared abolished, net decrease mergers unregulated wars. readily apparent frustrate purpose. gave insulate certain mergers. themselves—the very thing prevent. 218 220, 784—785. 21 illogical nature argument remembers passed, arguably proposed construed 'public interest' consider implications 274 n. 20, 936; 242—244, 1008—1009. Mediterranean Pools Investigation, F.M.C. 264, 289 criterion added until 1961. 75 763. petitioner's interpretation, strong objections criteria met. cannot believe shows, wanted 22 demonstrates used term 'agreements' word art included definition. observed, 23 catalog 'full classification agreements' (i.e., attention primarily exclusively directed) single form reorganization. represented 'ongoing' nature. describe practices regular activities companies participate considerable time. studied bears slightest resemblance merger, essentially single, event, transforms merging instant merger.' F.Supp., 658—659 omitted).10 24 few places discuss mergers, distinguished sharply directed. summarizing findings wrote: 25 controlling water domestic referred preceding pages, grouped three headings, viz, (1) control ownership accessories lines; understandings; practices.' 26 court 27 'Consistently throughout Report, reorganizations, occasionally mentioned, 'consolidation ownership' 'control acquisition,' variations thereof. Never refer 28 conceptually on-going, 'consolidation' 'acquisition' (of form).' 659 29 Finally, examination statutes acquisitions control, unambiguous language. years passage dealt involving carriers. Panama Canal 49 5(14), 30 '(I)t unlawful (as defined Interstate Commerce Act) own, lease, operate, whatsoever (by stock otherwise, directly, indirectly, company, stockholders directors common, manner) operated elsewhere aforesaid vessel carrying passengers said route railroad traffic.' 31 acquisitions, unambiguously. 5(2)(a)(i) authorizes give 'for proterties franchises, part thereof, ownership, management, operation properties theretofore separate ownership.' manner, Communications 47 222(b)(1) provides: 32 'It lawful, application (Federal Communications) hereinafter provided, telegraph effect consolidation merger; thereafter, acquire properties, facilities, carrier.' 33 Examination Aviation particularly instructive regard. Title 1382(a) air Civil Aeronautics Board 'every traffic, service, equipment, relating establishment fares, charges, classifications, eliminating destructive, oppressive, wasteful competition, stops, schedules, closely parallels obviously modeled thought insufficient Board's another, 'consolidate properties.' 1378(a)(1).11 IV specific grants authority, unwilling provisions serve purpose—a purpose intended. found, wrote 'neither sought information discussion ship sale They problem solution.' 432, 940. If, petitioner contends, need fill gap met policy questions thrashed resolution found. ready meet rewriting ourselves. 37 contends charged administration extended given great weight. See, NLRB Hearst Publications, 322 111, 64 1170 (1944). proposition may, general conceded, tempered caveat bootstrap itself area repeatedly violating mandate. disjunction abstract empirical data. below made detailed study bolster interpretation none assertion this, imposed find decide reconciled today. note demonstrate sort longstanding, articulated entitled judicial deference, indications vest seeking assert. 38 put administering deference courts, ordinarily affirmed 'reasonable basis law.' final authorities issues construction, FTC Colgate-Palmolive 380 385, 85 1035, 1042, 904, 'are obliged stand aside rubber-stamp affirmance decisions deem inconsistent mandate congressional underlying Brown, 278, 291, 980, 988, 839.' Aktiengesellaschaft 272, overstepped limits placed 40 Affirmed. Originally, Board. 728, 729, 733. Over years, shifted Bureau Department Commerce, Exec. Order 6166, (1933), 1985, Board, 1273, finally, 840. convenience, practice 'Commission.' pertinent part, 'Every water, chapter, party conform co-operative arrangement. understandings, order, exporters, ports, modifications, cancellations. 'Any approved, disapproved, unlawful, cancellations lawful long ..' '(e)very modification, excepted sections amendments Acts supplementary thereto.' attack. 216, 783, 242—246, 1008—1010, proper properly asserted Space Enclosures, 137 9, 420 577 (1969). Direct appeal orders authorized 2342(3). 2344. regard irony. allegations destructive exemption results, submitted filing, actually approved.' 273, 936, remains expansive immunity. definition beyond certainly dispositive, least worthy synonyms evocative activity. court's observations largely frustrated extensive When turned '(u)nlike divide territory charge few.' 421. arena, controlled chiefly railroads filed, ultimately distinction whenever mechanism applicable. text. Note, Industry Seeks Safe Haven: Merger Jurisdiction FMC?, Law Pol. Int'l Bus. 274, 285—286 careful envisioned devices prevalent field. 1912, already prohibited owning infra, 742, went 'far toward undesirable States.' 422. While respect merely paralleled pertained 'arrangements' rather 'mergers' 'acquisitions' sufficiently regulated legislation. 422—424. infer 1916 amendment 1950 Clayton 18, amended 1125, 1126. amendded, specifies 'Nothing transactions duly consumated pursuant Securities Exchange Secretary Agriculture.' face statute, confers listed agencies, coverage unaffected changes 'plainly adjudicate issues.' 486, (1962). Hence, nothing inferred inclusion predecessor list. confirmed amendment. acceding list agencies Letter Grenville Mellen, Vice Chairman Senator Herbert O'Conor, Chairman, Senate Subcommittee 2734, Sept. 29, 1949, reprinted Brief Petitioner 52—54, explicit '(i)n making addition category, powers possess.' S.Rep.No.1775, 81st (1950), U.S.Code Cong.Serv. p. 4300.

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