Document: 346 U.S. 521 74 S.Ct. 261 98 L.Ed. GENERAL PROTECTIVE COMMITTEE FOR HOLDERS OF OPTION WARRANTS UNITED CORP.v.SECURITIES & EXCHANGE COMMISSION et al. No. 184. Argued Dec. 2, 1953. Decided Jan. 4, 1954. Rehearing Denied Feb. 8, See 347 911, 474. Mr. John Mulford, Philadelphis, Pa., for petitioner. Messrs. William H. Timbers, Richard Joyce Smith, New York City, Randolph Phillips, respondents. Justice DOUGLAS delivered the opinion of Court. 1 The United Corporation is a holding company registered under Public Utility Holding Company Act 1935, 49 Stat. 803, 15 U.S.C. § 79 seq., U.S.C.A. seq. Section 11(b) that requires each company, with exceptions not material here, to limit operations system which it part single integrated public utility and businesses reasonably incidental or economically necessary appropriate system. 11(e) allows submit plan Commission will enable comply 11(b). 2 controlled, directly indirectly, various gas electric companies in east. It submitted which, claimed, would complete its compliance rejected United's plan. 13 S.E.C. 854, 898 899. Commission, however, withheld issuance dissolution order so as afford an opportunity by divesting itself control over subsidiaries transforming into investment company. Id., p. accordingly directed cease be corporate structure class stock, namely, common stock.1 3 No review was sought. Thereafter retired preference stock exchanging underlying portfolio securities cash. Other were disposed through market sales dividend distributions. 4 As December 31, 1950, had outstanding 14,529,491.5 shares option warrants entitling holders purchase 3,732,059 at any time price $27.50 per share. assets consisted approximately $57,000,000 $2,000,000 cash government bonds, equivalent $4.12 share stock. securities, stocks operating companies, included 11.9 percent voting Niagara Mohawk Power Corp., 28.3 South Jersey Gas Co., 5.8 Improvement 5.5 Columbia System, Inc., other amounts less than 5 total outstanding. further provided essential follows: 6 First. sale all sufficient stockholdings within one year resultant holdings exceed 4.9 those companies. 7 Second. An offer stockholders who wanted withdraw from Holders 100 more offered portfolio; smaller blocks These offers on voluntary basis. 8 Third. Cancellation without compensation holders. 9 Fourth. Amendments charter by-laws (without vote stockholders) provide cumulative election directors 50 quorum meetings. 10 approved modifications issues presented this case. Releases Nos. 10614, 10643. 11 method approved. 12 Offers enterprise held fair both them chose remain investors United. denied participation reorganization ground there no reasonable expectation increase extent needed give recognizable value continuance inherently deceptive perpetuate useless unnecessary complexities structure. 14 changes respects requirements approval stated provisions relating cancellation amendment bylaws operative 'until States District Court shall, upon application thereto, enter enforcing said provisions.' Release 10643, 3. such provision made 16 Some thereupon filed petition Appeals 24(a) Act.2 They challenged First Second plan, we have described above. also asked Third Fourth provisions, ones subject Court, Appeals. petitioner protective committee representing warrants. moved intervene proceedings Appeals, claiming forfeiture justified. opposed intervention reason Commission's Act3 only jurisdiction respecting elimination amendments bylaws. 17 allowed intervene. long applied district court enforce exclusive aggrieved person entire including enforceable if affirmed modified approving thereafter obtain enforcement, function except enforce, since ruling fairness binding Accordingly reviewed found equitable respects, order. 92 U.S.App.D.C. 172, 203 F.2d 611. case here certiorari limited question jurisdiction. 810, 42. 18 whether judicial orders Commission. are reviewable first reading may leave impression conflict between 11(e). gives 'an order' grants 'exclusive affirm, modify, set aside order, whole part.' This clearly broad enough include seeking 11(e), provides some instances plans Moreover, virtue 18(f)4 apply enforcement where appears someone about commit violation. We tendered several alternatives: 19 1. That having acquired can should 20 2. phases proceeding and, pending phase entertained 21 so-called split permissible has reserved certain being restricted reserved. 22 concluded circumstances present questions it, pertaining In result affirm reverse jurisdictional grant certiorari. 23 noted begin marks out two paths Act. One procedure whereby require designated steps taken Failing that, 11(d). Commonwealth Southern Corp. v. Securities Exchange Cir., 134 747. concerned bringing deal second compliance—the submits discretion Congress left management determine how bring their systems Our problem starts 'may * divestment control, assets, action enabling subsection (b).' 24 turn then problems involved efforts voluntarily meet 25 contemplated might satisfy themselves converting S.Rep.No. 621, 74th Cong., 1st Sess., 13. If anticipation step desired security exchange portfolio, doubt holder. Two cases drawn program illustrative. 26 After ordered simplify capital proposed eliminating making basis approved; Phillips 153 27. Later pro rata distribution subsidiary 87 380, 185 746. 27 If, therefore, put separate physically comprehensive exchange, could been 24(a). unable see why mere fact isolation but proposals joined together presentation approves make difference purposes review. 28 Rutledge writing Central-Illinois 338 96, 69 1377, 93 1836, pointed essentially scope Rather, perform. he said, serves 'to mobilize authority carrying policies Act.' page 125, 1392. full import statement understood functions performs appreciated. applies complying words, what traditionally known field business finance reorganizations, say, reorganizations designed management, imposed without. proposes reorganization; after hearing, approves, finds 'necessary effectuate (b) persons affected plan'. ended there, plain either 'aggrieved' 18(f) when brought own procedure, somewhat peculiarly worded. standing ask machinery placed behind reorganization.5 provides, 'the request court, accordance (f) section 18, carry terms plan.' (Italics added.) 29 accede company's suggestion. does mandatory do so. says 'may' implies exercise discretion. request, Act; every proposal treated. refuse part. considerations governing embrace variety factors. 30 eliminate stock; possible because object. Therefore compulsory retirement necessary. shown re D.C., 82 F.Supp. 196. enforcement. 31 decree convenient means (if one) modify certificate incorporation. Thus Delaware corporation statute directs Secretary State accept federal modifies, alters, repeals amends Del.Code Ann. 1953, 245. 32 Illustrations multiplied. But given indicate able degree compulsion submits, need force reorganization. 33 On hand, conclude conditions favorable, financial situation strong, attractive help source once 34 choice—the right help—to 35 Conceivably requested unless proceedings. conclusion reached aspects closely intimately related turned other. issue arises want nothing govern enterprise. 36 confronting decides, connection 'mobilize Act', use words Retledge case, supra. send let others go route desire take there. Here fields (Phelps Dodge National Labor Relations Board, 313 177, 194, 61 845, 852, 85 1271) relation remedy policy administrative agency. American Light Co. 329 90, 112, 67 133, 145, 91 103. cannot say abused for, already observed, apparent relevancy manner stockholders, sought Circuit 24(a), they 37 be, argue, better scheme none proceedings, parties notified heard time. wisdom differently. relates, history recapitalizations, readjustments, well suggested litigious numerous, overall mandatory, select Certainly isolated point objection, whose protest relates advantage accorded him He suit circuit resides his principal place business, Columbia. sue bailiwick await institution perhaps faraway place. hearing personal grievance running risk lost large shuffle many interests involved. 38 There strange irrational routing warrant Each day court. Nothing impinge performing different function. Whether devised us determine. indicated Act, selection submission did not, borrow phrase Circuit, lose 'sight law.'6 39 taking controversy insofar (1) (2) withdraw. 40 So ordered. 41 Affirmed reversed places duty limit, specified exceptions, structures. provides: 'Any party issued title appeals wherein Columbia, filing sixty days entry written praying A copy shall forthwith served member officer thereof purpose, certify file transcript record complained entered. Upon objection considered urged before grounds failure do. findings facts, supported substantial evidence, conclusive. adduce additional satisfaction evidence adduced seem proper. facts taken, new findings, conclusive, recommendation, any, modification setting original judgment affirming, modifying, side, part, final, Supreme certification §§ 239 240 Judicial Code, amended (U.S.C., Title 28, 347).' 'In rules regulations deem interest protection consumers, may, January 1, 1936, purpose (b). notice find modified, plan; application, approve 11, equity deems possession thereof, wherever located; appoint trustee, constitute sole hold administer, direction theretofore possessed.' 'Whenever appear engaged engage acts practices violation title, rule, regulation, thereunder, proper States, courts Territory enjoin showing permanent temporary injunction restraining granted bond. transmit available concerning Attorney General, who, discretion, institute criminal title.' 79r(f). speaking 747, 751, said: 'If carried thereto needed. authorizes proposing fair, appropriate, direct out, end. 'It thus seen congressional open area determining just required standards. obvious way. evidently intended permit initiative suggesting among alternative methods most appropriate. seems clear light position propose affecting rights third against opposition persons. 11(d) seek apposition company.' Standard Electric 151 326, 331.

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