Document: 386 U.S. 372 87 S.Ct. 1100 18 L.Ed.2d 159 BALTIMORE & OHIO R. CO. et al., Appellants,v.UNITED STATES al. The DELAWARE HUDSON CORP., Appellant, v. UNITED ERIE-LACKAWANNA CO., CITY OF SCRANTON, Milton J. SHAPP, CHICAGO EASTERN ILLINOIS Nos. 642, 680, 691, 813—815. Argued Jan. 9 and 10, 1967. Decided March 27, [Syllabus from pages 372-373 intentionally omitted] Howard Trienens, Chicago, Ill., Lloyd N. Cutler, Washington, D.C., Edward W. Bourne, Harry G. Silleck, Jr., New York City, Leon Keyserling Gordon P. MacDougall, for appellants. Sol. Gen. Thurgood Marshall the Robert Ginnane, Hugh B. Cox, Joseph Auerbach, Boston, Mass., Walter Myskowski, Samuel Kanell, Hartford, Conn., David Berman, John H. Chafee, Providence, R.I., appellees. Mr. Justice CLARK delivered opinion of Court. 1 These six appeals involve validity an order Interstate Commerce Commission permitting merger Pennsylvania Railroad Company 2 [Argument counsel Central (Penn-Central) pursuant to § 5(2) Act, as amended, 41 Stat. 481, 49 U.S.C. 5(2). In its original April 6, 1966, found that might divert a substantial amount traffic Erie-Lackawanna (E—L), Delaware Hudson (D H) Boston Maine Corporation (B M), three smaller competing carriers designated 'protected railroads' by Commission. protected railroads had filed under 5(2)(d) Act applications inclusion in both this Norfolk Ry. Co. York, C. St. L.R. Co.—Merger, 324 I.C.C. 1. latter case E—L D H has been recommended and, together with B M, is pending before roads Penn-Central proceeding have held abeyance decision proceeding. 3 On merits merger, service 'render their shippers essential public interest dictates (such service) be preserved.' concluded 'that immediate consummation proposed would consistent interest, if conditions are imposed obviate impairment or serious weakening' lines. Without such major system, further found, it doubtful 'three could withstand competition applicants merged, unless they during period necessary determine future, we not authorize at time, even though approving merger.' 327 475, 532. It, therefore, applied, sua sponte, certain which were 'designed prevent any loss revenue over (the railroads) direct result Its 'approval undelayed consummation' was made 'subject * specifically described appendix G,' ibid., attached order, likewise attach Appendix here. Commission, apparently because necessity urgency required compliance G neither benefit report Hearing Examiner thereon, nor advantage hearing itself. detailed protection must given them prerequisite merger. 4 only necessary, but fixed terms thereof prior There nothing tentative about divided into two general categories provided that: (1) 'competitive factors'1 merged company shall not, final determination proceedings, provide new changed routing practice, freight rates, tend routes railroads, them, participates participated time And (2) indemnified against losses reason manner indemnity calculated accelerated processing complaints routes, practices, services. Section 7 did accede all conditions, deferred years 'such may protect interests H, M E—L.' 8 'shall construed, administered enforced view protecting E—L, shipping depends upon transportation, effects purposes set forth above.' 5 Thereafter, without hearing, on objection most parties, September 16, modified 6 reopened hearing. 328 304. objectors, among other things, pointed fact notice create irreconcilable conflicts between others adversely affected reopening limited G, prevention possible manipulation enlargement provision include capital loss. left intact continued effect ban rates participated, lifted indemnification condition until retroactive date None previous findings, imposition included amended withdrawn. alone effect. This suit 7, arose complaint seeking interlocutory injunction restrain A three-judge court convened, 28 2284, thereafter declined, vote, grant injunction. United States, 259 F.Supp. 964. appellants sought stay Harlan who referred application Court granted October 18, 1966. At same expedited consideration. 385 914, 224, 17 18. sole question us whether, light findings interim so-called erred awaiting proceedings. We believe determining ultimate fate roads. We, reverse judgment remand District instructions matter proceedings accordance opinion. I. Questions here decided. outset make clear do pass special peripheral points posed various parties. hold uncontradicted conclude II. background, participants relative position. 10 study discussion some years. After initial completed 1959, withdrew plan began negotiations Chesapeake Ohio Railway (C O) joint control Baltimore O). However, when later C O contracted purchase 61% stock, gave up renewed Penn. signed agreement 1962. Haven Hartford (NH) approached Penn plant deaf ear. properties, franchises, etc. (permitted respective state law), transferred appropriate stock exchange, debt arrangements, etc., effected. 11 As 'create hour-glass shaped system flared east Montreal, Canada, through Norfolk, Va., west Mackinaw Mich., Louis, Mo.' I.C.C., 489. It operate 19,600 miles road 14 States Great Lakes, splash Canada north, Potomac Rivers south. systems connected planned expanded yards provided, will consolidate trains now moving separately points. combined parallel trackage 160 common junctions. Terminals consolidated, present interchanges eliminated efficient facilities utilized. calls 98 projects intermesh long-haul key points, creating nonstop principal cities 'locals' covering multiple-stop branch estimated enormous savings transit can Certain chosen yards—such Selkirk—will remodeled modernized electronically operated capacities 5,000 10,000 cars per day. West formed Selkirk those broken dispatch terminals consignees England, northern Jersey. City routed Central's River East Shore line lessen cost. By consolidating fast lines, filling out trains, rerouting eliminating effecting improvements, reduce 6,000,000 number train operated. single-line more less circuity switching. also 31 daily withdrawn seven ones added, leaving total 319 daily. 12 largest third railroad Northeastern Region. Together operating $1,500,000,000 1965. Their net income 1964 totaled almost $57,000,000 1965 ran excess $75,000,000. 1963 barely $16,000,000. cost operation runs $90,000,000 month working $72,000,000 December 31, 1963, investments $1,242,000,000. each underlying corporations. Examiners' Report ownership 182 corporations lease. Thirty-six rail carriers, voting control. All Class I railroads. II five switching terminal holding company, car-leasing companies, four 34 noncarrier 13 NH2 sixth Region England. national basis ranks fourth passenger-carrying one nontrunkline 1,500 States—Massachusetts, Rhode Island, Connecticut, part York. NH reorganization 77 Bankruptcy 47 1474, 205, since 1961.3 While gross revenues run $120,000,000, deficits 1958. During trusteeship $12,700,000 1962 $15,100,000 III. protesting setting position 15 Altogether 200 parties support opposition appellant challenge merger; however, Shapp Scranton attack merits. Aside PennCentral NH, there involved 16 Three these carriers—B E L. operates passenger Maine, Hampshire, Vermont, Massachusetts road. suffered consecutive appealed 750 600 than 50 Vermont balance Pennsylvania. $5,000,000, highest year 1960. 3,000 located Jersey, Pennsylvania, Ohio, Indiana Illinois. $3,000,000 heavy preceding previously noted, 1.4 withheld action Western (N W). Commissioner Webb his 22, recommending N W unable prescribe M—this private negotiation argument indicated anticipated entering July August If favorable acquiescence plan. Six additional O, Jersey (CNJ), Reading Company, Western, Maryland (WM). O—B See O. Co.—Control—Baltimore O.R. Co., 317 261, sustained, sub nom. Brotherhood Maintenance Way Employees 221 19, aff'd, curiam, 375 216, 84 341, 270 (1963). railroad. lines extend Michigan Virginia Mo., Rochester, N.Y., D.C. $80,000,000. addition, owns 38% turn controls CNJ. 1,200 eastern $8,000,000 CNJ 514 extending Scranton, Pa., N.J. deficit $3,000,000. own jointly 65% WM. 741 Connellsville, Webster Springs, Baltimore, Md. nearly $8,500,000. 7,000 double prong Des Moines, Iowa, Kansas Buffalo, Pittsburgh, Cincinnati, Bristol, Hagerstown, Md., east. approximately $118,000,000. seek system. 19 11, 1965, asking approval single offering therein, subject conditions. effected Penn-Central—NH effected, then giant i.e., O—N 20 Only remains party here, Chicago Eastern Illinois I). Evansville, Ind., $3,500,000 Missouri Pacific already authorized fear formidable competitor it, accordingly, 21 Shapp. served fears adverse city therefore opposes sues citizen stockholder 22 memorandum does 'quarrel proposal itself.' agencies Executive Branch, Solicitor General reports, 'believe should promptly effected.' view, based assumption place emerging pattern consolidation Northeast lesser region.' Commission's completion objects. contends very survival threatened first absorption 'a like Western.' To end suggests enable related concludes 'Only resolve problems resulting deem urge reach below.' 23 take varying positions short attacking contend consummated enforcement effective protective interim. Judicial review, say, otherwise illusory. group maintain give vested diverting normally gone them. They drawn deficient detriment. what inconsistent benefits 'of intensified competitive effors' connecting Penn-Central. 'compound economic injury' befall prompted request measures. IV. 24 transportation policy practices thereunder. 25 often 'is product long history trial error Congress *.' McLean Trucking 321 67, 80, 64 370, 377, 88 L.Ed. 544 (1944). Transportation 1920 'marked sharp change policies objectives embodied efforts.' Ibid. directed adopt systems.' 481 (1920). Consolidation approved finding transaction harmony furtherance complete promoted. But warned 'competition preserved fully possible.' initiation unification, wholly carriers. no power compel mergers. carried forward 1940, 54 898; former approve carrier-initiated proposals just reasonable Under inclusion, request, territory involved. said County Marin 356 412, 78 880, 879 (1958), 'the (1940) means, while remained same. language 'unification section' expresses clearly desire industry proceed toward integrated corporate simplification.' Id., 417—418, 883. has, proceeded master plan' regions. Following procedure refused case. supra, 265—266, Also 29—31; aff'd 26 contended fatally defective failure comply 5(2)(b) requires 'enter authorizing transaction, modifications, so reasonable'. claim provisions open future meet requirements section. Once valid entered course, retain jurisdiction purpose making modifications finds subsequent circumstances assist or, correct errors. 5(9) supplemental orders 17(3) clerical errors certificates. find naked done Even assuming power, insupportable findings. V. 27 Conclusions. 'serious degree' 'severely handicapped' providing highly industrialized areas serve, 'essential' immediately imposed. significantly, permitted 'are 529, after brought strong voiced, save ones. sufficient according vehement objections cause havoc rather shelter. cannot Court, meant themselves systems. interpretation face enumerated above specific 'impairment Indeed, being tentative, rigidly established entire consistency predicated entirely unqualified acceptance Otherwise put off effort expedite failed declared indispensable leaves conclusion—that prompt interest—without falls 29 facts none disturbed, attacked, permit note dated 'finding (as interest) that, require pendency petitions system.' Nevertheless, spite confirmation finding, ordered 'special protection' afforded Having sustained protection,' statutory obligation arbitrarily removed standing. 30 patent invalidity status decided especially true recommendations Webb, submission full reached thereon 1967, advised counsel. little merger—which now—and resulted finally decided, obviated. Furthermore, occasion controversial insofar concerned. Finally, solution problem charge large dissipated course action. obviated determined. affected, quickly protection, any, required.5 32 disposition buttressed disposed favorably existence remedy remaining aside unscramble consolidation. follow issue money. blinking reality. traffic, trackage, terminals, well financial structures will, beyond doubt, combined, changed, abandoned, consolidated. maintenance quo business participate. comparatively small northeastern coastal would, percentage wise, whole restriction operations including warehouses, structures. proposes follow, briefly sketched indicates changes quick Our experience mergers, sense well, indicate 'scrambling' goes unscrambling interminable seldom effectively accomplished. 33 studied decade. agreed ago consideration ever time. is, expedition. weight estimates relatively time.' should, entail delay attacked expedited, one, early made. too high price pay human ingenuity devise, all, our handled properly seriously disrupt irreparably injure section country—to great detriment convenience Nation. reversed remanded 35 ordered. 36 Judgment instructions. APPENDIX TO OPINION THE COURT. G.* 37 Pending Finance Docket No. 21510 prescribe, hereinafter called period, factors, publish practice and/or services, either locally participates, filed, engage conduct contrary explained report. 38 For illustrating—but way limiting—the condition, following prescribed: 39 A. considered separate are, establishing privileges privileges. 40 When allocated employed system's filed. Where via component participation therein components maintained vigor heretofore exercised preventing noticeable diversion route participates. 42 D. agree divisions interlined advantageous event receiving proportionally receive 43 E. conjunction shall, keep force companies system; equal better filed; improve service, extent within least participates; where rates; becomes appropriate, conform requirement above. 44 2. term factor' construed mean participating particular route, rate handling thereon. 45 3. specified report, supra. 46 4. constitutes applicants' apply caused by: (a) hostile warlike government sovereign (de jure de facto) military, naval air forces; (b) insurrection, rebellion, civil war, cetera; (c) disaster; (d) depression; (e) strikes; (f) act God; (g) similar affairs. 5. interpretation, governed exclusively provisions: 48 controversies arising determined finality below. Except 3, whenever considers violated, violation effectuation tariff publication (individually collectively) file Board Suspension, specifying rate, privilege, matters constituting alleged statement verified official complainant data giving rise complaint. Suspension complained of, factor defined conditions), yet effective, suspend forthwith investigation of; exist, thereupon suspension removed; involving effect, investigate investigation, cancellation violative involved, termination conduct. Orders such. 51 above, Complaints, officer complainant, addressed relief sought. 52 determinations whether days decisions issues raised rendered 90 53 Appeal lie division 2, Suspension; (3) Special rules Boards appealing therefrom promulgated 55 6. Notwithstanding sections 1, 4, 5, pertaining supersede violate regulations 56 7. fail above-named E—L. 57 8. 58 9. applied addition standard hereof. 59 BRENNAN, concurring. 60 join Court's ICC discharge duty consider include, M. aside. 61 ICC's last authorizations first, allowed O.1 second, merge Nickel Plate.2 confronted petitioned W-Nickel Plate approval. E—L's precarious led carrier's withdrawal petition favor negotiation, 21, consequence denial petitions, 31—32. meantime, come fearful assured, argued contingent equitable approved. 30—31. denied requests, recognizing substance H's fears, retained Inclusion 'found interest,' constitute 'irrevocable assent' condition. 148. 62 Before approved, roads, appreciating danger pose survival, conditioned Soon after, voluntary broke down, W, other, stating consistently interest. urged delayed assured. tantamount consolidated decision, Department supported 63 alleged, preserved,' 'doubtful concerned recognized, preferable Penn-Central, completed. Rather improved consummation. pending, denied, allow terms, 553. Meanwhile, usual preserving existing gateways, prescribed 'unprecedented' kinds: requiring continue patterns respect competed roads; guaranteeing computed share realized Penn-Central; compensate lost acceptable Proceedings reconsideration ICC. Some ground assurance alternatively indefinite inadequate, demanding family introduced evidence affect community postponement questions concerning offered O.3 65 rescinded laches hear 304, 318. reaffirmed Penn-Central's formulated, although foreclosing judicial review indemnification. 329. enjoining going merger.4 66 clear. authorizes agency consolidations 'will 906, 5(2)(b). statute creates presumption mergers generally interest; rather, examined depth Thus, explicitly '(1) adequate public; transaction; charges (4), carrier employees affected.' 5(2)(c). National Policy controlling guide, 82, 378, 544, 'to promote safe, adequate, economical, foster sound several developing, coordinating, water, highway, rail, needs commerce Postal Service, defense.' U.S.C., call discerning wide range preclude 1940 simply consolidation.5 recognized inquiry possibilities increased economies, extends parts affected,'6 encompasses 'duty, administrative matter, competitors situation policy.' 87, 380. 'The prime consideration, regard relevant factors.' Toledo, P W.R. Co.—Control, 295 523, 547. 67 critical factor, my case, *.'7 authorized, 'as require, another requesting interest.' 5(2)(d). recognizes filed,8 'would endanger impair Q.R. 271 157, merely 68 ICC, perform takes sufficiently discharged provides possibility meanwhile promises impose My disagreement proposition vests discretion go worked out. broad authority transactions *,' 5(2)(b), 'may good shown, orders, paragraph (1), (2), (7), section, appropriate,' 5(9). occasionally reserved work Unification, 154 489, 493 494;9 Union Pac. 189 357, 363.10 sort possible, undermined. always warranted. An impossible, inability circumstance invariably conditioned, contemplated regarded detrimental 69 decide, instance, risk developments acute enough inclusion. Jaffe, Control Administrative Action 565—567 (1965). resort deferring accomplishment inclusions ends carefully weighed reviewed. likely, despite deferral, fulfilled basic duty. significant possibility, premised unattainable attainable motion forces evaluating proposal, factors discharged. dangers far greater accrue fails governing facts, irreversible, concededly reversible expense. 70 Prior entailed fulfilling When, assure whose preservation doubt arranged. complementary unification created expect Moreover, submit value arbitration agree. 493. indication impossible rendering unattainable, subjected accounting changes; possible. 363.11 71 striking contrast. Allegations numerous terms. arguments demonstrate difficulties 'opportunities *' endeavored preserve uncertainties. 72 obviously uncertain alternative recognize solution, virtual monopoly England York.12 (See map depicting result.) reports notwithstanding lessening intramodal EL, M,' F.D. 21510, p. refuted themselves. Both Examiners expressly interest,13 implying opinions W.14 73 'opportunity' hardly presents risky alternative. acting Presiding Officer, issued able report; contents circumstances, accomplished Appellees much consummating Nickel-Plate, 'irrevocably petitioners ICC), 529. assumes resolution dispute. report: 74 'equitable involved,' review.' Report, 16. 75 Webb's reveals stemming deferral exist He rejected mutually exclusive independent contentions pointing survive intermodal services become he relating Since authorization relevance address myself 76 burden condition; showed modest profit years, soon draw optimistic conclusion absorb few 'precarious plight' assume absorbed 25. merit, characterized growth 'erratic.' 17, 10. So debt, fact, 'precludes N&W EL near future.' 84. consequence, required, looking eventual liabilities permit. interfere connection id., 139, consequently makes applicable well. With recommend form M's poor prospects recovery. unlikely saw fit pay, minimum shares twice appraisal. 153, 156. clear, likelihood great. Therefore, reasonably premise Penn-Central—that system—may possibly Neither answer uncertainty economically feasible seen, worth dispute, never considered. extends, moreover, attainable, events light. assumed occur, temporarily undermine incumbent potential outcome Clearly, so, record significance result. 79 O's settled Commissioner's recommendations, adoption W—C directly uncertainties probative gets around considering proposal. example, prevents outright obstacle thereby strengthened. presently probably O.15 problem, allege stand hurt combine. Although prove allegations, reopen introduce diversion, modify 305, ability service. Instead, substituted 'has shown 318, seems probable refusal deduct 'N resisted corresponding adjustments earnings admissions suffer 44. meant, lose proportion expected lose.16 80 appears increase actually cause, affiliation thought southeastern (see result), includes important coal border port area, exported abroad, strongly opposed Central. Had faced affiliation. fulfill 81 shrouded Concededly, hand, arranged controversy out, pressure (because dependent E—L's), surrounding designed considerably once consummated. 82 originally reconsidered preconsummation One obvious inferred irreparable harm inherent keeping controversy, effectiveness hearings respects 328. Modifications retroactively, issue. assurances, non-protected grounds, lightly dismissed. 83 types involved: conditions; revenue; devised increasing brief, taking engaging 'which indirectly, 561. unquestioned, exists intended scope. relying expressed intention 'any' result' consummation, 532, step participate, improvement designed, truck competition. retroactively released eliminate defeat continuing begun instituting intervening period. Central, conditions' scope, assurances solicitation shippers.17 proceeding, reference maintaining 'status quo,' free offer quality individually leave free, formerly all-Central all-Penn, pool flexibility, actions line. Brief Conditions, 21989 21990, pp. 8—12. Whether succeed deterioration point difficulty. Traffic usefulness obtainable unified management, schedules, simplified tracing cars, inspection advertising resources), operative shipper. deemed rigid value, adopted difficult, unsettled contributes revenue, payable realize, formula fixes base payments, modified, inadequate. nonprotected unlawful. Quite clearly, handle indemnities. Correspondingly avoid payments. unlawful definitively settled, still process reconsidering indemnity, viewed meaningfully challenged relied damaged unattainable. 85 advanced assuring reached. definition condition's purpose: 86 'capital loss,' used refers offset gains attributable annual income, capitalized rate.' 25, n. 21. guarantee difference gain Unquestionably, facilitate adopted, approach vigorously assert viable diverted, likely diverted. claim, rely accomplish continuation essential. Capital Loss Indemnification, 21989, November 28, raise again specter arguing problem. merit attainability paid, 'in reflect diminution impact words, penalized anticipating serve.' 28. His valuation apparent conviction basis, granted. 43.18 conclusions readily seen unresolved important, score 89 What defer confronting difficult cast irreversible manner, fundamental facts. many far-reaching, arriving implementing conclusion. responsibility weigh feasibility deems importance flexibility deal emergency situations damage pressing need justify represent substantially $80 million 52. Improved economies commonly claimed results consolidations, proportionately improvements $80,000,000 saving eight 501, estimate account curtailment formulated avowed quo, see 532.19 stressed 'persistently low return' equipment, 501—502, again, usually party. assistance militates approval, considered, force, increases recent 55. necessarily longterm consolidation, show ground. 91 pressed intensity embraced level. 312. Judge Friendly's proper perspective 'unrealistic suppose F.Supp., 973. tenable longer delayed, task NH's Trustees reorganizing due unanticipated fall entirely. every invaluable performs, largely speculative. proponents greatly contend, fragile package. unnecessary risks taken enthusiastically elaborately concern 92 projected anything Those unquestionably destroyed somewhere implicitly assured concern, alternatives difficulty consequences depart certainly mere recitation plan's speculative inconveniences precipitate action, ample warrant unhesitating Congress' directive. 93 argues decisional purposes, return 'master 'unsuccessfully tried 1920, regardless merits.' 'consistently proceedings,' 48, Government's unsuccessful W—Nickel 94 understand exactly arguing. Certainly 'prepare railway properties continental 481. Nor regional plans 95 powerless itself custodian development told planning duties. 'conduct law best conduce justice,' 17(3), possesses closely related, postpone O—Control, 266. apart explicit close appraisal Acts responsibilities broader anomalous comparison pieces legislation sweeping contention 96 respects. both, initiated compelled. salient Nation's judge created. Proposals fulfillment stood chance initiate choice. function procedurally, serve ends. 'largely problems,' chief aim overcome 'rates returns weak survive, care prosperous enjoy excessive returns.' Leonard, 57, (1946). encourage establish stronger industry, 'was grounded avoidance wastes means insuring *, prosperity promoted effectuated side balanced earning power.' S.Rep. 445, Study Group Committee Commerce, 87th Cong., 1st Sess., 234 (1961). drawing plan, channels trade wherever practicable. mechanically, achieve limited, primarily goals. 97 contrast, wide-ranging, Policy. Financial numerous, conflicting, considerations. 'enlarging values consideration,' Reich, Law Planned Society, Yale L.J. 1227, 1248 (1966), incongruous signifies strictly ad hoc adjudication. powers, failing use procedural techniques agency's authority, guardian procedures develop records coordinate secure results. Tucker O'Brien, Public Interest Mergers, B.U.L.Rev. 160, 184 (1962). Within context case-by-case approach, 16(11) 'employ attorneys representation investigations cases commission's instance so.20 staff information cases. Bureau Inquiry Compliance possesses, safeguards, powers notice,21 frequently assigned functions, investigative adjudication background. 13(2) confers 'full institute inquiry, motion, thing arise chapter, chapter,' resorted forms studies obligations. S.Doc.No.10, Monograph Attorney General's Procedure, Part 11: 77th 93—96 (1941). Particularly noteworthy Staff Consolidations Interest, Transport Economics Statistics, contains analysis Reprinted Exhibit Hearings Subcommittee Antitrust Monopoly S. 3097, 2d pt. 99 promulgate depend broadly implement cope e.g., Rock Island Motor Transit 340 419, 382, 391; American Ass'ns 355 141, 165, 158; Frisco Transp. 358 133, 170, 172, liberality. conditioning proceeding.22 sum, assertion 'only 'planning' power' region. 46. 100 pre-eminently 'directly virtually conducted it. passive arbiter 'guardian times protected.' H.R.Doc.No.678, Practices Procedures Governmental Transportation, 78th (1944); Southern Rate Investigation, 513, 603. empowered gather presented exercise advance serves interest.23 end, latitude fashioning procedures, proposals. prisoner parties' submissions.24 Rather, choice how goals Policy.25 101 am reassured 'consistently' degree. refusals distinguishable, performing destroyed.26 generally, simple problems, Shapiro, Choice Rule-making Adjudication Development Policy, Harv.L.Rev. 921 (1965), complexity useful device, prearranged offsetting disadvantages isolated formulating applying policy. 102 advantages continual exposure concrete situations, developing sequence impressive.' 81. disadvantage individual 'seldom produce comprehensive importance.' 82. Obviously, satisfactory diminished. tools assemble factual records, interrelated proceedings,27 issues. segregated, leading extraordinary instead resolving undesirable enabling deciding withhold, depending Evidence appear itself, anticompetitive strength compete merge.28 aware opportunity illustrated Chairman 'If O.—B. help Nickel-Plate right circle.' Hearings, 24, 397. 103 unaware on. Tucker, trilogy, 'failure natural self-interest reciprocity silence.' 326. lip-service contrary,29 evaluated mind. Thus others, allegedly realistically revealingly: 104 'We cognizant evolving picture northeast nation, refrained influenced subsidiaries participate grounds upset program. Such infers managerial program outweigh injury plans.' 304.30 105 rulings reveal series unacceptable assumptions. unrealistic, interests. incorrectly self-interest, reaction agreements understandings rest. secured abandoned relied, petitioner 61—62 (representation quoted dissenting opinion). Most recently, diversion. observed, refusing evidence, assertions proof injurious affirmative showing effect.' 317. revealing indignation condoned, stated 'measured deliberate silence' supports inference gained system-building aspirations forceful arouse counter opposition. Now, safely challenge, perhaps breaking 106 Ultimately, reliance objectionable advance. be, 'gigantic game dominoes' playing, 550, unalienable abdicate prerogatives oppose primary injury, strive obtain comprehensively covers considerations.' Merger Problem, Senate Judiciary Committee, 88th Sess. (Comm.Print 1963). commendable industrial statesmanship demonstrated occasions serves, cohesion demonstrates, op. cit. 405, 11—13, aggravate 'grows tendency compromise differences expense unorganized public,' Davis, 378. regulatory bulwark compromise. requisite viability,'31 '(t)he outlook interests.' R.I. P.R. 218 88, 103, 651, 656, 946. Scenic Preservation Conference F.P.C., 354 F.2d 608 (C.A.2d Cir.), cert. Consolidated Edison Inc. Conference, 384 941, 1462, 540. 107 responsibility. 'Deference decisionmaking fair 566. 'As search seemingly, secondary rights conclusive exigencies appear, doomed impotency instrument government.' 297 (dissenting opinion).32 108 DOUGLAS, part. 109 known further. face. adequacy desirable undesirable. sit agency. entrusted underlie disapproval concentration wealth. narrow confines 5(2)(c) standards satisfied Congress. think has. 110 word background irresponsible decision. indi 111 THREE SYSTEM DISTRICT, WITH SMALLER LINES INCLUDED IN PENN-CENTRAL 112 TWO SHOWING MERGED INTO C&O-B&O cated preference systems: O; Plate; initiative sought, proposed, June 1960, indeed embark unfication, Freight Trunk Line Association territories' 'principles Commission) future.'1 'attainable' alliances 'any truly basis.'2 Today's predicament prophetically forecast ago:3 113 'Although superior lineups suggested 'attainable mergers' (approved big interests) all. helter-skelter method developed complicated particularly East. story begins Virginian 1958, successful access Pocahontas friendly Virginian, placed enhance (which controlled Western). plus announced acquire sharpened massive entrenched rich coalfields Tidewater ports. outpoint getting couldn't convince Swiss bankers Then negotiated three-way president Perlman believed balanced, O—C union Plate, leasing Wabash, Pennsylvania's Sandusky straw outmaneuvered, thus do—agree That 'attainable,' crucial determinant reorganizations.' requests 266; Louis 19. 114 piecemeal, hands-off commanded 1940. remove consolidations. ignores mandate preamble 'promote carriers; system'. Brother BRENNAN notes, significantly broadened responsibility; 'incongruous adjudication.' Ante, 427. insure co-ordinated consolidations; straitjacketed disjointed approach. Yet attitude evident district Penn, merged. systems, alignments suggests, indicates, subservience estimates, proposals, evaluations, prophecies future. 115 curiam 270. 1; legality litigated. argument. 116 Now 'panic button' pushed here; asked hurriedly foisting cartel country. generate pressures Holmes remarked 'bad law.' Northern Securities 193 197, 400, 436, 468, 679. 'For accident overwhelming feelings distorts judgment. kind hydraulic seem doubtful, principles bend.' 400—401. submit, decline invitation. 117 governs provides: 118 'In passing paragraph, considerations, others: (4) 119 items listed exemplary 'considerations, others.' 120 omits questions, think, ingredients interest' 121 Brandeis, writing 293 454, 464, 268, 272, 587, emphasized 'left inference.' Cardozo M., 294 499, 511, 462, 467, 1023, saying, know ours say wrong.' More recently responsible review: 122 'Congress executed. entails standards. halted threshold perfunctory process. If, erroneous construction lies hidden vague whittled away. insistence intrusion domain. observance 'prerequisite command.' Opp Cotton Mills, Administrator, 312 123 126, 144, 657, 524, 624. Hence formal one. evidence.' Carolina Carriers Corp., 315 722, 730, 971. 124 Many issues, evaluation exposed record, let appraised. absence impossible. 125 nature cartel? it? stockholders known. brokerage houses banks nominal title customers. beneficial owners unknown, requested company. request. interlocking directorates, directors interested steadily concentrated hands banks, insurance 126 area merger? outside result? towns roads? Will dry up? dislocations tangible gains? 127 answered demands 'public 128 concluding included.4 Haven? mirrored well-being States. rundown carrier, attract factories? factories employment met? 129 Haven, why communities merged? mentioned, reduced 'from main status'—a 'particularly western gateway route.'5 130 healthy stretched along statements market prices securities, oligarchy head behemoth turned loose. Rail planning. whatever been, delegate rubber stamp relate 131 practically aspects dealt resources contingencies ahead. second region competition, justified loss.6 reads reflects considerations treatment wonder conceivable merger—all southern roads—all roads—or southwestern generalized rationalizations easily theory promoters Brandeis ago,7 132 size awesome, excessive. 51% assets, 50% 52% revenues, 75% miles, 53% area. combine next experts dominant relations government, modes vast Railroads district. 8—9 (Comm. Print 133 common, road; compete. realizes communities. downgrades severity frankly interrailroad oligopoly, nonexistent unimportant.8 thinks misusing tremendous power,9 bulk traffic. suggest norm, avoided 'inefficient.' Comparing Company-Northern gives impression different bodies commission. sensitive noted furnish impetus lower low-rated shipments Burlington Lines, Merger—Great —- —-. 134 bother nonetheless road, notoriously desperate included. saying prowess satisfy Act. satisfies salvage situation. This, admit, salvaging economy relevant,10 counties degree obsolescence suffer? 135 production distribution goods supply materials. transporters low-cost, merchandise. efficiency Adequate costs, bound health dependent. furnished communities? locate elsewhere inadequate transportation? firms cease expand move areas? decreased opportunities residents elsewhere, ghost trunk-lines? discussion, health. 'finding' foreshadowed furthering employment, tax, developmental vitally combination? totally unenlightening. better. list interesting statistics, state-by-state attempt evaluate combination.11 Compare Stanford Research Institute, Selected Impacts Mergers 136 financiers imprimatur company? How powerful be? Are antagonistic served? Is putting banker-management disastrous Other People's Money 129—136 (1933)? 137 excellent example management operators. said: 138 combination developer concentration; illustrates 'large security issues' put. 139 1892, Morgan directorate, $25,000,000 paying cent dividends, 508 1899 capitalization grown $80,477,600, aggregate mileage (mainly leases lines) 2017. Fourteen later, 1913, died Mellen resigned, 1997, 1899; $425,935,000. (A)dditional needed, also, paid dividends earned. (O)f increase, $200,000,000 expended acquisition securities steamships, street railway-, electric-light-, gas- water-companies. discussed $67,000,000, cent, bond issue, expensive fourteen equipment cost, average, $10,000,000 year.' 121—122. 140 '(T)he grievous fault banker-managed recklessness—a thousands investors throughout whom supposed guardians. stocks generations absolutely safe investments, unbroken dividend comes disaster. 141 'This disaster mainly enterprises legitimate railroads; equaled quantity extravagance enterprises. 142 'Close scrutiny discloses justification. contrary, gravity committed. Not recklessly extravagant acquisitions mad pursuit monopoly; judgment, financiering conspicuously bad.' 130—131. 143 passed, emerged bankruptcy reorganization, 1954 Patrick McGinnis won proxy fight became president. owned preferred stock; heavily interested, cash preferred. amounts, following: 1954........................... $3,440,180 1955............................ 2,457,700 144 outlays severely cut. Total ways dropped $27,641,046 1953, $19,647,313 1954, $18,338,714 1955. $24,306,984 $22,794,715 $21,933,318 145 cabal $7,000,000 railroad's money months. Cash reserves dwindled, current mounted, long-term debt. 'It's speculation venture business' director. Time, January 30, 1956, 76. 146 milked predatory finance? 147 Alternatively, regime loose, hands? enterprise character get stepping domain? 'How cross enter domain government?12 ownership13 ownership? 148 vitals answered. worry mind advance, bailed Bailing said. modern terrible spectre Federal Government Frankensteins running country people ill afford. 149 alarm default 'protected' roads—Erie-Lackawanna, Hudson, Maine. destroy know. disappear scheme. Should bought manner? 150 Buffalo north City? 151 suggestions belong logical 22. eligible 28—29.14 frustrated threatening L, members raises distinct destroyed. Brennan 152 resolved bondholders. shippers, consumers, truth informed 153 unprotected doubt. anew said, East—the merge. mentioned. Reading. commence huge cartels three. Was creation one? 155 happen cartels? possible? 156 No nowhere solution. Until known, claims transaction'. 380, industry'. 157 conspicuous rationalized 158 privately embracing 85% market. constituted; cannot, restructured combines established. hierarchy centers really met. Carriers, U.S., 480—489, S.Ct., 725—729, Exchange Chenery 318 94, 626, upheld disclosed safeguard finding. here.' 161 spell 162 FORTAS, HARLAN, STEWART WHITE join, dissenting. 163 policy, reflected congressional legislation, 1919, when, World War I, frail apparent. formulate which, hoped, goal achieved. 1925 relieved year, enacted 1919 unchanged. Because technique idea architect. Joe Paper Atlantic Coast 347 298, 315—321, 574, 583—587, 710 (Appendix) (1954). 164 ownership, obtained. provision, basically 5(2): reasonable, scope subdivision (section) reasonable. Among are: Jurisdiction enforce, enjoin, aside, annul suspend, part, order' courts 1336. argument—one confidently today's decision—that antitrust ingredient, judged initially 165 laws. 84—85, 379, (1944), 'little measure all-rail anti-trust laws.' Term quoting Trucking, overturn Seaboard Air 382 154, 277, 223 'It laws; criteria 'consistent interest." 156—157, 278. 166 effectuate combining rivalries, overlaps conflicting ambitions formiable appeared hopeless. 1962, 1964, And, elaborate maneuvering negotiating, Lengthy followed, 1966 Co.-Merger-New 475. sometimes overlapping Northeast, middle midwestern consequences, last, progress towards successively laws 167 temporary complainants Court,3 plaintiffs complain Shapp, shaky standing bare shareholder asserts calculating derived therefrom, unwarrantedly pessimistic prospects, anti-competitive inflict Commonwealth concurs Shapp's available correctness represented Branch substantive formulation effected.'4 168 objects unfair. opposition, urges order. Vigorous attack, launched complications 169 Circuit Friendly himself Levet, declined enjoin Weinfeld today sets ruling bases opinion, DOUGLAS concurs, illegal reason. respectfully dissent. affirm upholding 170 Certainly, tolerable substitute least, superiority liberty this, intrepidity imperfections, incorporates direction generations. responsibility, task, courts, instrumentality, refurbish revitalize communications urgent—some urgency. efficiencies aggregating annually eighth badly needed modernization facilities. wrong direction, argues; franchise 171 form. Here, carry complete. follows: 172 large, assumed, describe, former. final. agreement, irrevocable consent consent. jurisdiction, system.5 final, settle terminate herein remembered, review; past guide prediction, long, complex, bitter. short, home calendar next.6 173 resubmit petition. 174 'when effectuated, diverted M.' Accordingly, 'their active cooperation implementation connection, attack. 531—532. 175 consisted measures maintenance, patterns; payments cover any; disputes alternate protections sections' law. 563, App. 176 demanded, provisions, impairment. induce harmful amounted pooling arrangement 5(1) 177 reconsider reconsideration, 'Since willingness accept post-merger modification becoming effective. assent reasonable; modified.' ruling, commenced 178 halts reasons stands 179 Fundamentally, misconception firmly larger fix must, fairness, setting. 180 were, below 'unprecedented mergers'. 969. focused reason, understandable anyone familiar process, crystallized post-argument deliberations staff. complex. Interim unknown unknowable. realignment elements unique, doctrinaire separated quiet theoretical condemnation realistic agency, explain readiness insist unknowable Solutions prescriptions written, prescription clear: invited substitution formula; awareness perfect admonition letter spirit mandate; commendably, suggest, litigation modification, respects,7 181 holds 'insupportable,' lacked concedes purposes.8 'find drastic induced solely roads—to committed—by prescribing complex provisions. ultimately fixed, done. event, unreasonable; magnitude except substance.9 action; impaired 183 details. Indemnification prescribed. Effective available. lawfully presumably modified. respect, nonsense 'unscramble consolidation.' guaranty payment courts. implemented conventional processes. immediately. Cf. 391 (1951). 185 administration agencies, unfortunate consequences. know, settled. says delay'; perfected prediction profound skepticism. Too obstruction delay; maze inhospitable ingenious bent delay. source book dilatory tactics monument burial over-elaborate manipulated art. continues unfulfilled; urgent local impeded; erosion rapid pace; urgently suffer. 186 compelled law—if rested substance—the practical grace. so. insisted this. has—I commendably—embarked forthcoming, careful working-out avoids disrupting timetable comment applaud unusual demonstrates ornamented practices. indulge second-guessing. plain principle stages objective affirm. Addendum: 187 BRENNAN's concurring comments. 'this job roads: abstract settlement destiny precondition statute, precedent, sense. reserve incident Faced—as not—with coping realities life, content perfection. agrees out.' argues, situation, settle, definitive lays tortuous nullification based. 188 argument, grips lead merger—to object—will reaches point, refrain grit teeth ahead unfortunate. stems catastrophe. journey horrifying trip outer space make, indulge. rocketry repairing deplorable network. '(a)llegations made' 'might terms.' allegations interesting, dispositive; 'there 190 'significant possibility' C.R. 69, 255, 262, cited. true, argue roads' fierce struggle ounce flesh paradoxically defeat.10 pessimism, nullification, W; equitable; interest—or happened corrective mandated 191 recognizes, Commission), speedily fail. 192 darkly 'virtual States.' attaches about, says, down burdens irresistibly impel affiliate monopolistic bear result, O.' possibility. That's true. remoteness divulges can, disagree resourceful imagination foresee minor monopoly, nor, Commissioners gifted envisage response solemn oath build house mouse. yielded virtue urgencies overrule them.11 timid, reluctant, deferential intervene establishes repeat: Given conceded repudiating 194 analyze ripe review. 'merger agency' confess bafflement tolerate 195 consider, material aspect elaborate, meticulous evoked enthusiastic response—perhaps excessively enthusiastic—in destiny. accomplishing necessary: benefits. reserving jurisdiction. integrity 196 escape dimensions departure judgments situations. probable, aided shock herein, avert mischief aborting avoiding persist effectuated. consequence. reversion negation governmental sphere. conservative restrained, no. deserve understanding efforts solutions entitled shown. guardians liberties people. administrators 'Competitive intends fixed. Company—Debtor, 288, D.C.Conn. Plate. L 'should effects' 19—31. Each these, deprived NH,'s (its) gateways,' 527. deprive overhead Wilkes-Barre, Pa. lost, alleges, afford heard Provisions Protection (D.C.E.D.Mich.), Merger, Justice's Presented, recites appeals. appellants, representations amply Rule 15(1)(c)(1), briefed argued. 528, Counsel Transcript, 58, 'position 80. 964, 972. arises appeal motions injunction, lawfulness pronouncement N.P. B.L.R. 21478, —-, 1967: legislative shows fostering encouraging unifications. favoring interpret perversion intent. scale balanced. tipped slightest meaningless, favors unifications disfavors 63, 146. Detroit, T. I.R. 275 455, 811 (D.C.N.D.Ohio). Statistics 'Railroad Interest' (p. 46), accurately labels criterion, involves railroads.' 859 'does limit take-it-or-leave-it basis. enjoined transactions.' 26. Accord, Corp. 287 12, 45, 49, 138; Alton Co.—Acquisition, 301, 313, concluded, 271, 285, followed 224 259, 269, application, applicant abide 266—268. Going intents door lines' desirability. 269. examples cited appellees inapposite. employee Allyn M.C.C. 310—311. unexpected slight. Rfg. Serv. Comm., 360 392, 1246, 1255, 1312, ruled FPC certificate vital price, consuming justness reasonableness determined' hearings. contemplated, prejudged. 'highly Feb. 26, 415. receptiveness postponed stated: 'No assess accommodate premature.' 418. 481—482, reserved, 'whether Company's 531. elimination weighed. drew chart (Appendix T—2 Report) incorporated impact. Maryland, W's northern-most terminus East, operations, York-New South-southwest. 429—430. uphold voluntarily effectuating views, 528. appraising 433. LV Lehigh Valley), transcontinental Port N.Y. 517, 514. expose 'and foreclose strategic earnings, herein.' 154. financially willing actual shareholders holdings, decides 43. infra, explanation. Penn-Contral using 132. exchange reciprocal adjustments, deducting submitted proportionate him discount completely (in Penn-Central) moot.' 47. interference achievement improvements. Vice-President Large testified dollars away.' Transcript 15, 22343. Qualified 'no years.' 22344. Five Per Cent Case, 351. §§ 15.01—15.14 (1958). recommended, sell Valley sale 434—435. felt recommendation, 517. 'A body ignorant evidence. deficiencies record. bring overlooked willfully attention. aid lack adequately expert knowledge commissioners staff, mass accumulated H.R.Doc. 678, 70. Eastern-Central Ass'n 194, 208—210, 212, 216—217, 506—507, 508, 509 510, 688. 3097 stop stop, it,' 384, responded query buy package all,' indications merger's accounts T—2. unlawfully determined, three-system structure essential, destruction 282; 27—31. abundant interrelated. alleging play Numerous obtained Western-Nickel Pennsylvania-Central Erie-Lackawanna, lines.' relationship palpable, divest knew Penn's managed contract 108-mile enabled link Plate's line, 74. 'nor understood divorced other. Unfortunately, tended blur proceedings.' 23. earlier operate, took 'separately compare element strength, tested volume, results, improving service.' Applicants, 21989—21990, 141. '(a)lthough categories, (to merger) significant, dominance P.R.R. share.' 424. too, justifiable now, citing growing systems' check abuse strengthened 514, 519. case: 'Notwithstanding considered.' 280. insignificant steps, 319. rejecting Department's ought donsolidated 'significant' joined serious. 31. accurate appraisal, impliedly outweighed Huntington, Marasmus ICC: Railroads, (1952). Morgan, Critique Interest,' (1953). surprising FORTAS sphere.' restricted regulate economy. discarded.' Ferguson Skrupa, 726, 1028, 1031, 93. today, shared Justice, directive supervise Petition 33475. prepare consolidation' 'into H.R.Rep. 1217, 76th Schwabacher 334 182, 192, 958, 963, 1305; 417, 883, 879. propose enforce 710, four-to-three vote. '* (W)e transaction.' 524. 14, ailing constituents; reduction operations; capability. premises justifications questioned. suggest. See, Keyserling, Move Toward 72—74 (1962); 49—54 wave contraction physical plant, dampen development. 75—78. Others multitude causes, strike roots palliative Nelson, 327—435 (1959); Meyer, Peck, Stenason Zwick, Competition Industries 242 273 67—71 diseconomies, predicted proponents. Healy, Effects Scale Industry problems. Curse Bigness seq. (1935). Conant, Abandonments 25—40 (1964); Laws, Stan.L.Rev. 490—495 progress, efficiency, prices. products. firm sheltered firms, obtains intermodal. 240—241 (1959). Further, regulated trucking rapidly decreasing, entry motor industry. trend continues, firms—perhaps mode—serving route. happens, oligopolistic likely. Chamberlin, Theory Monopolistic 46—53 (1956). Report. plight Phode typical: 'N.H. serving State Island. Over percent population manufacturing N.H., inbound movement raw materials 35,000 consigned shipped industries N.H. $5,000,000 revenue. stations Newport, Quonset Point Davisville, Narragansett Bay installations employ civilians. State, 1,200,000 passengers utilizing originate annually. 200,000 Metropolitan Area 1,000,000, water commodities, Providence discontinued. Governor evidenced State. belief attracting industry; relocate plants defense installations. socially, criterion sub-criterion *. Separate affording distinguish dependence mammoth prelude nationalization 260 Legislation, (1962) (testimony Professor Kent Healy). perceptively 'Unfortunately, (Penn-Central Plate) aligned Township Weehawken, appeal. Memorandum 'authorize direct' 'authorize' 21510. speculated finish 969, (1951) 'auxiliary supplemental'); 489 (1929) (inclusion lines); N.W. 261 672 (1946) (employee provisions). '(I)n legal prescription, interference.' 567 jockeying mergers—which, suspect mostly about.' 981. intend

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