Legal Document

419 U.S. 102 95 Supreme Court Reporter 335 42 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 320 Robert W. BLANCHETTE et al., as Trustees of the Property Penn Central Transportation Company, Appellants,v.CONNECTICUT GENERAL INSURANCE CORPORATIONS al. Richard Joyce SMITH, Trustee New York, Haven and Hartford Railroad Appellant, versus UNITED STATES RAILWAY ASSOCIATION, CONNECTICUT Appellants, al.* Nos. 74—165 to 74—168. Argued Oct. 23, 1974. Decided Dec. 16, Syllabus As a comprehensive solution national rail crisis precipitated by entry into reorganization proceedings under § 77 Bankruptcy Act eight major railroads in northeast midwest region country, Congress supplemented with Regional Rail Reorganization 1973 (Rail Act). Each railroad must proceed unless its court within specified times finds (a) that is reorganizable on an income basis reasonable time public interest would be better served rather than or (b) does not provide process fair equitable estate (hereafter railroad). 207(b) Act. Appeals from orders are provided Special Court, whose decision final. The establishes Government corporation, Railway Association (USRA), which directed formulate 'Final System Plan' (Plan) July 26, 1975, for restructuring 'financially self-sustaining service system.' Plan transfer designated properties Consolidated Corporation (Conrail), private state-incorporated return Conrail securities, plus up $500 million federally guaranteed USRA obligations other benefits accruing transfer. Plan, becomes effective if neither House disapproves it 60 days, transmitted has exclusive jurisdiction all concerning Plan. 209. Within 10 days after deposit securities obligations, order trustee convey forthewith railroad's 303(b). then determines 303(c), appeal extending this whether conveyance standards, more constitutional minimum requires (in case necessary adjustments made). If equitable, reallocate, issuance additional enter judgment against Conrail, combine such remedies. Railroads may discontinue abandon but until only any line consent absent state opposition. 304(f). Parties interests company (Penn Central) brought suits attacking constitutionality Act, contending violates Fifth Amendment taking property without just compensation, grounds (1) constitutionally required equivalent compelled 303(b) (the 'conveyance taking' issue), (2) 304(f) compels continuation operations pending Plan's implementation even erosion, beyond limits, Central's occurs during interim period 'erosion issue). While rejecting issue premature view number decisional steps before final conveyance, District held was premature, rejected contention States, USRA, limit permissible uncompensated erosion should passed, plaintiffs have adequate remedy at law Tucker gives Claims render 'upon claim founded either upon Constitution, . .,' finding precluded remedy. therefore declared invalid violating 'to extent require continued operation services loss violation rights owners creditors railroad,' 303 failed compensate In addition injunctive relief, enjoined certifying 209(c). further determined provision requiring dismissal certain geographically nonuniform subject bankruptcies. Held: 1. availability effects ripe adjudication distinct possibility Central, past several years sustained great losses 'reorganizable (§ 77),' injure below assurance implemented their being compensated. Pp. 122—125. 2. barred available compensation effected 125—136. correct intended prevent recourse affirmatively manifests congressional intent permit recourse. 126—127. provisions relied evincing determination no federal funds those expressly committed were paid properties, equally support inference felt least gave consideration withdrawal 127—129. (c) Section 601 specifically deals statutes inconsistent mention Pacific KF135 P2 129. (d) There legislative history supporting argument construed withdraw 129—133. (e) Applicable canons construction fortify conclusion 133 136. 3. Certain basic issues now adjudication. 136—148. Since Court's opinion reversed court's did estate, some decided. 138—140. Implementation will lead inexorably though exact date cannot determined, included Plan; since inevitable relevant justiciable-controversy there delay occurs. 140 143. Several factors militate deferring resolution here closer occurrence disputed event position later determine validity final-conveyance issues. However, issues, involving valuation, postponed. 143—148. 4. For same reasons obtained respect issue, suit cash award cover shortfall between receive finally conveyed minimum. 148. 5. guarantees might occur result 148—156. Plaintiffs' inadequate because exercise eminent domain power full payment merit. coupled valid statute constitute virtue representation Conrail's board directors (which instrumentality) formulation; defects Act's judicial review. 152—155. Though differs mandating prior resources reorganized debtor estates and, eventually, creditors, provides 155—156. also assures eventually made whole assets conveyed, thus deprive procedural due process. 156. 6. contravene uniformity requirement Clause. 156—161. This holding obviates ever confront proceeding violative bankruptcy requirement. 156—158. violated restricted single statutorily defined lacks merit preclude fashioning legislation resolve isolated problems, acted consistently when dealt centering problems carriers applied every throughout States. 158—161. D.C., 383 F.Supp. 510, reversed. Solicitor Gen. Haw. Hawai‘i KFH45 A2 Bork others. Lloyd N. Cutler, Washington, Assn. Brockman Adams, Seattle, Wash., Representatives, amici curiae, special leave Court. Charles Atlantic Horsky, Blanchette others, Trustees, etc. Louis Craco Willkie, Farr & Gallagher, York City, Connecticut General insurance David Berger, Philadelphia, Pa., Joseph Auerbach, Boston, Mass., Smith, Trustee, Mr. Justice BRENNAN delivered 1 These direct appeals cross-appeal three-judge Eastern Pennsylvania 1973, 87 Statutes-at-Large 985, 45 Code KF62 701 seq., (1970 ed. Supp. III), unconstitutional part enforcement.1 Federal KF105 F3 510 (1974). We noted probable jurisdiction, 801, 9, 32. reverse. 2 * Introduction 3 A transportation seriously threatening welfare country2 entered 11 205.3 After measures 342 proved insufficient,4 concluded railroads, stripped excess facilities, single, viable system operated private, for-profit corporation. created law, significant financing make plan workable, became January 2, salient features are: 4 each pursuant district having over finds, 120 1974, 'the section (77) (such reorganization) chapter,'5 180 'finds chapter ..' 207(b), 717(b) ed., III).6 taken constituted 209(b), 719(b) decided 80 taken. '(t)here shall review court.'7 5 Appellant (USRA) established new 201(a), 711a III). prepare 206(a)(1), 716(a)(1) See §§ 201, 202, 204 206, 711, 712, 714—716 Final 301(a), 741(a) reason transfer.' 206(d)(1), 716(d) III); see 210, 720 III).8 6 submit proposed 570 207(c), 207(d), 208(a), 717(c), 717(d), 718 (a)Supp. is, 1975.9 'effective' continuous session submission. 102(4), 702(4), 718(a), III).10 transmit 90 which, given 'proceedings plan.' 'within of' 'shall trustees forthwith' 'all right, title, .' 303(b), 743(b) 7 next conveyances '(A) accordance standard fairness equity applicable approval (or) (B) transfers minimum.' 743(c) additional, (subject overall limitation purpose), decree combination these 303(c)(2). authorized decides exchanged 'more minimum,' 303(c)(1)(B), so 'constitutional minimum' exceeded. 303(c)(3). Appeal 303(c) determinations 303(d).11 8 Although free dispose they wish 304(a)—(c), 744 , none 'may do affected State local regional authority reasonably opposes action II Proceedings 9 Constitutional questions raised litigation parties Central), largest reorganization.12 principalcontention pLAINTIFFS IN THE DISTRICT COURT WAS THAT two respects Amendment. They contended, first, received transferred. issue. premature. F.Supp., 517—518. second, severe inhibitions imposed discontinuance abandonment lines. particular, claimed limits period. agreed extent, viewed huge operating already incurred making determination, saying: '(W)e persuaded exists point been soon reached can said below) adjudication.' 525. fact 28 1491. precluding remedy, stating: 12 'We supports financial limited express terms Article I, Clause (of Constitution) money drawn Treasury except consequence appropriation law. 213(b) Act), 214 entitled 'Authorization Appropriations' place ceiling expenditures. 210 describes maximum obligational authorization 'such amounts discharge arising section.' (Emphasis supplied.) Judicial delineated specificity Sections 209(a) Claims.' 528—529. 13 governing abandonments 14 'null void railroad.' It consequently defendants 15 'from enforce abandonment, cessation, reduction hereafter competent preservation Constitution.' 16 relating 17 contravening insofar fails 18 Finally, 530. 19 challenged 'uniform' 8, cl. 4, enact 'uniform Laws Bankruptcies States.' dismissed one 207(b). 180-day debtor, dismiss proceeding.' void, .,'13 enforcing, implement, much purports Act.' III Issues Decision 20 dividing 1491, recover deficiency dimension alleged taking,' available, contend resort supplemental necessary, both adequate. precludes not, inadequate. 21 speaking through Judge Friendly, comprehensively canvassed thorough opinion, bar Our independent examination brings us conclusion, substantially stated Friendly Parts VII VIII opinion. 384 895, 938—951 (1974).14 22 Also ruling hold currently operable portions uniform. IV 23 Alleged 'Erosion Taking' 24 opening brief, argued involved because, matter compelled-loss claimants bankrupt estates. general rule 'be granted use grant discontinuing kept loss,' Brooks-Scanlon commission Louisiana, 251 396, 399, 40 183, 184, 64 L.Ed. 323 (1920); Bullock Florida ex rel. Comm'n, 254 513, 41 193, 65 380 (1921); Texas R. Co., 264 79, 44 247, 68 569 (1924), qualified suffer good-faith efforts develop feasible justifies Continental Illinois Nat. Bank Trust Chicago, R.I. P.R. 294 648, 677, 55 595, 606, 79 1110 (1935); RFC Denver R.G.W.R.Co., 328 495, 535—536, 66 1282, 1303—1304, 1400 (1946); Inclusion Cases, 399 392, 493, 2054, 2110, 26 691 (1970). maintained represented effort. Reply Brief 3—4, however, abandoned sure period: 25 'Difficulties unforeseen unanticipated could plan. example, could, theory, successively disapprove plans. Thus, whatever probabilities, absolute time. reason, we although extremely unlikely, remains theoretical 'Accordingly, believe injunction preventing denying applications circumstances appropriate unless, contend, otherwise reach decide 'Tucker question' presented appeals.' (Footnote omitted.) 27 conclude true definitive dimensions suffered unreasonable light reorganization. But found 382 831, 842 (E.D.Pa.1974). And stipulated ordinary net mid-1970 aggregating approximately $851 million, months following enactment had deficits railway income, total fixed charges. conditions accelerate accrual post-bankruptcy claims priority claims. failure raise provided.15 Yet 'reasonable, obtaining compensation.' Cherokee Nation Southern Kansas 135 641, 659, 965, 971, 34 295 (1890); Joslin Mfg. City Providence, 262 668, 43 684, 688, 67 1167 (1923); Dow, 357 17, 21, 78 1039, 1044, 1109 (1958). Therefore available. B Availability Remedy Any 29 pertinent part: 30 'The Congress, regulation executive department, implied contract liquidated unliquidated damages cases sounding tort.' 31 plainly fall literal words 'any Constitution inquired 'read (Rail) Act' 'judicial grand, arrogant, scale.' 529. 32 wrong inquiry. question expresses affirmative showing Rather, withdrawn hear 'founded agree 33 sufficient proof admittedly silent point, scheme history, sufficiently evidences Congressional intention exist.' 939. decisions affirm intended, '(i)f taking, Constitution' determine.' Causby, 256, 267, 1062, 1068, 1206 (1946). '(I)f Amendment, impliedly promised pay afforded recovery Yearsley Ross Construction 309 18, 413, 415, 84 554 (1940).16 Hurley Kincaid, 285 95, 52 76 637 (1932). Yearsley, Chief Hughes, went 'it doubted obtain U.S., 22, S.Ct., 415. 35 turn inquiry withdrew 'that read rests evince Congress' properties. 36 first referred 209 impaneling consolidation attaches significance omission Reliance placed funding provisions. 210(b), captioned 'Maximum authority,' 'aggregate amount outstanding exceed $1,500,000,000 aggregate issued (Conrail) $1,000,000,000 '(a)ny modification (these) limitations joint adopted Congress.' explicitly appropriates $12,500,000 Secretary Transportation, expenses 'preparing reports exercising functions performed him chapter,' $5,000,000 Interstate Commerce Commission carrying out functions, $26,000,000 'for purposes administrative 37 convinced sums surely equal never focused possible need Claims. That very well evident statement Report: 38 timely obstructed controversy Committee title especially guarantee Constitutionally claim. extraordinary protections, permitted Plan.' H.Rep. (1973). 39 303(c)(3) authorizes reduce payments 'are fairer suggests thought itself compensation. manner 601, 791 addressed 'Relationship laws' implies 601(a)(2) 'antitrust laws inapplicable implement .'; 601(b) '(t)he transactions whenever chapter'; 601(c) that, 4332(2)(C) Title (National Environmental Policy 1969) apply despite clear evidence aware necessity deal laws, nowhere addresses question. uncertainty text cleared Senate discloses meant To contrary, disclosing repeatedly emphasized belief assured import oft-stated taxpayers unduly burdened provided, see, e.g., 119 Cong.Rec. 36354 (1973) (remarks Rep. Metcalfe); id., 36359 Conte); Senator Hartke's explanation Conference Report Senate, 43094—43095, statement: 'If nothing while continuing mandate service, people Claims.'17 remarked, agree, context 'not bill, amended conference, contained prevail, particularly what he characterized 'rather slim' chance getting liquidation, meaning maintained.' 941. think reading aided colloquy side managers 42947 (1973).18 concern jurisdiction. concerns powers reliance put 'subsequent history' form statements Congressmen Oversight Hearings Subcommittee Aeronautics June 14, amicus brief filed behalf Congressmen. post-passage remarks legislators, however explicit, serve change expressed passage. See, Mine Workers America, 330 258, 282, 690, 91 884 (1947). Such 'represent personal views (made) passage National Woodwork Manufacturers NLRB, 386 612, 639 n. 34, 1250, 1265, (1967). Moreover, oral Representative spokesman group, conceded arise available: 46 'QUESTION: So you anticipate situation where available? 47 'MR. ADAMS: Oh, yes. Let's say, over-and problem—that party comes says, too long, unreasonable, specific individual point. 48 think, situation? 49 Of course. repeal Act.'19 50 sum, find most ambiguous circumstance, statutory 51 One canon repeals implication disfavored. Mercantile Langdeau, 371 555, 565, 83 520, 525, 523 (1963); Borden 308 188, 198—199, 182, 189, 94 181 (1939); Amell 158, 165—166, 86 1384, 1388—1389, 445 (1966). 'capable co-existence, duty courts, clearly reward effective.' Morton Mancari, 417 535, 551, 2474, 2483, 290 Court: 'A wholly partially amending 'positive repugnancy' old reconciled. principle sound foundation. Presumably serious earlier statute, broadly based Before repealed qualified, insist legislature's using language considered end. 943. 53 play ambiguous, 'construction go direction policy.' Johnson, 273, 276, 249, 251, 89 236 (1944). grave doubts compensated itself. case, observed, '(w)hen admissible preserve unconstitutionality another condemn it, former favored language, arguably somewhat strongly way.' 944. our 'task destroy can, construe consistent comport limitations.' Civil Service Letter Carriers, 413 548, 571, 93 2880, 2893, 796 54 Lynch 292 840, 1434 (1934), fully conclusion. cause statute. Economy 1933, 11, granting pertaining yearly renewable term hereby Courts, affirmed Courts Circuit, Reporter, 2nd 490 (1933), Seventh Wilner 442 dismissed, provision, beneficiaries policies 405 War Risk Insurance 1917, 410, authorizing courts respecting 'disagreement insurance.' beneficiaries' actionable 'disagreement' failing premiums insureds totally permanently disabled refused died. unanimously dismissals. effect vested contracts. held, Brandeis, depriving absence indication away. said: 'Fifth. suggestion although, repealing 'granting insurance,' take away contractual remedy; purported right. war settled rules construction. bad necessarily entirety. allowed stand separable bad. unobjectionable itself, appears standing alone, legal Legislature fall. Dorchy Kansas, 286, 288, 290, 323, 686. Here essentials absent. separate dealing appear wished deny right Amendment.' 586, 846. 56 Similarly, Act) (Tucker (from history) remedy' 57 accordingly V 58 'Conveyance 59 declined procedures issue) violate rendering entirety.20 'persuaded premature.' 517. Briefly, challenges assert basically largely stock unproved entity, work taking.21 variant assure market value stocks awarded less conveyed. goes further; argues substantive 'fair equivalent' valued 'highest best use.' contends threatened erosion: continue, albeit different form, liquidation use' greater going concern. creditor process, meaningful fairness, stockholder voting 61 All urge ripeness involve, part, existence live 'Case Controversy,'22 rely concessions Controversy' sense. Further, involve restraint unnecessary issues,23 bound wishes parties. 62 prematurity influenced conveyance. led 'too speculative warrant anticipatory determinations.' Eccles Peoples Bank, 333 426, 432, 645, 92 784 (1948).24 63 subsequent re Trans. 856 On reversed, rendered judgment, case. 955. supra. circumstance altered posture regards maturity Whatever decision, little doubt, detailed, And, peculiarly timing, govern.25 First, presently determined. reject prescribing precision timing presentation plan, 207(c) (d), successive plans particular does, contemplate continue present plans, 208(b), 'effective,' 209(a). assume compliance mandatory certified 209(c).26 Second, mandated discretion transfer.27 flexibility, Hecht Bowles, 321 321, 329, 587, 591, 88 754 (1944), central defers controversies occurred. 55; S.Rep. Number Page (hereinafter S.Rep.).28 probably refusing indirectly injunction, appellees' violated. 931; Marbury Madison, Cranch 137, (1803). decline written contingency pretermitting Cf. Albertson SACB, 70, 76—77, 194, 197—198, 165 (1965). appears, then, prevented stockholder; remain decided, directing virtually certainty. empowers court, including it. allegedly way hypothetical speculative. Where inevitability individuals patent, irrelevant justiciable come effect. West Virginia, 553, 592—593, 658, 663—664, 1117 Pierce Society Sisters, 268 536, 574, 69 1070 (1925); Carter Coal 298 238, 287, 855, 862, 1160 (1936). 'One await consummation injury preventive relief. certainly impending, enough.' supra, 593, 663.29 True, situations where, injurious occur, actual event, factual record Public Affairs Press Rickover, 369 111, 82 580, 604 (1962). militate, course 70 short future interwoven 24, expending maintenance interval linger about ultimate 12. 71 carefully structured method planning implementing scheme. necessitates denial options motion proceeding, set receivership liquidate assets. long possible, 72 Third, significant, structure minimize irreparable injury. precise contours known shortly certification Court.30 Until developed, facts valuation transferred now. 73 effective, prohibits initial 209(a), (2). before.31 complexity lapse completed, practical irreversible once made. 74 create risk hasty afford protection late unconstitutional.32 75 hold, therefore, mean contentions pressed us. 'Even adjudication, immediately thereby thrown open constitutionality.' Communist Party 367 1, 71, 81 1357, 1397, 625 (1961). proper theory depends contingencies argue forcefully postponement resolution. impossible ascertain App. 205, 319, 371. impact equation, nor know various lie—that methods higher lower cost Conrail. Rulings rulings 'hypothetical (arise).' International Longshoremen's, etc., Union Boyd, 347 222, 224, 447, 448, 98 650 (1954). developed prepared. Without figures theories, able discern 'what deciding, adversaries, useful purpose achieved deciding them.' Wycoff 344 237, 244, 236, 240, 97 291 (1952). Clearly yet 'confining situations,' 72, inform ample opportunity litigate matured. vests responsibility determinations,33 determinations. 246, 241. Were attempt determinations, forced interpretation entrusted benefit views.34 supra; Great Tea Grosjean, 301 412, 772, 1193 (1937). minimum, stocks, valued, denied therefor Whether falls detain unavailable No suggested difference supported. inclusion kinds exchange adjustment equity. expected Constitution; more. If, hopeful expectation fulfilled, prove jurisdictional shortfall. Contract Adequacy argued, open, cure deficiencies Act.35 precluded, consideration' assured, satisfied. Primarily, contended properties.36 indeed suppose lie entire value, cash, 85 fails, reasons. questionable whether, face acquisition use, acquired cash. More important, fundamentally odds supplement 29, holds statutes. Statements opinions 'must perfect taken,' Monongahela Navigation 148 312, 326, 622, 626, 463 (1893); reimburse, Miller, 317 369, 373, 279, 336 (1943); 'full monetary Reynolds, 397 803, 805, (1970); Almota Farmers Elevator Warehouse 409 470, 473, 791, 794, (1973).37 Yet, cash—for benefits38 owner's remaining properties—may counted Bauman Ross, 167 584, 966, 980, 270 (1897); Nichols, Eminent Domain 8.62 seq. (rev. 3d 1974).39 merely statute; arguments favor 301(b) agency instrumentality Government,' 741(b) participation 'cram-down' constitutes instrumentality.40 From premise proceeds domain. directors. protect States' important assuring 'reasonable' objection Full control shift original court. 50% indebtedness. responsibilities directors—to operate profit shareholders. governmental, enterprise. formulation condemnation either. enacting provisions, legislate power. like supplements, 'advances step liberalizing bankruptcies,' 671, 604, (1935), 'far-reaching (it) be, (it has) gone Ibid. teaching R.G. W.R. (1946), 'cream-down' confirm rejection creditors. confirmation creditors' Congress. Those eliminate valuations acquiesce claims, gets his lien share assets.' Id., 533, 1302.41 ACT, SPECIAL HAS equitable' identify frivolous. arrived assess reviewed transfer, addition, thereunder respective distribute are, '(s)afeguards secured property.' Wright Life 311 278, 196, 199, 184 (1940); cf. North American SEC, 327 686, 785, 945 understood intimate compensable taking. broad scope Clause, 670, 603.42 formulated compelling wherein appellees consists 'so R.G.W.R. 1302. differ 77, last condition met. kind Because insistence accomplishing magnitude use. surpa, 710, 798.43 shortfall, regarding discussion suit. liens securities. assurance. act backed essentially lack dimensions. fulfills perfectly, function underwriting approved 486—488, 2106—2108. cures troublesome problem Complainants retaining longer requires. Indeed, really want sooner. asserted themselves; hand, sequence vital goals crisis. interest, VI 96 Validity Under Uniformity Requirement consider 'region,' giving 'To establish uniform 'recourse clause justify impairs obligation contracts.' 534 (opinion Fullam, J.). respect, adds Authority liens, 'cream down' reorganization, newly added 99 'newly time, inasmuch disposed Haven's operations, used reorganize enterprise investment company, 'at contemplates bulk someone.' 534. proceedings, relates debtors covered 100 respect. Following debtor's estate. 856, 870—871. Rather stayed processes prescribed 910—911. nonreviewable. address today review, occurring 101 remains, aspect decision. Appellees clause. geographic, Hanover Moyses, 186 181, 857, 860, 1113 (1902), operates region, nonuniform. surface overlooks flexibility inherent provision. upheld challenge ground 'capacity meet disclosed tremendous growth business development human activities 1800 day.' 604. distinctive far-reaching treating bankruptcies problem, 'beyond power.'44 103 account differences exist parts fashion problems. (under Clause) variations country.' Vinton Branch Mountain 300 440, 7, 556, 562, 736 hobble forcing nationwide enactments calling regions.' 915. 104 produced centered addressed.45 outside statute's date. Thus uniformly railroads. 105 debtors, requirements. Vanston Bondholders Protective Green, 329 156, 172, 162 (1946) (Frankfurter, J., concurring). 'No restricts wheresoever located relief regionalism.' 519. 106 Clause's comports Constitution. Head Money 112 798 (1884), levy ships' agents 50-cent tax passenger citizen who port foreign 'by steam sail vessel.' Individuals engaged transporting passengers Holland contrary empowered lay collect Duties, Imposts Excises (which) head levied noncitizen entering country inland mode tax, 107 force found. precisely alike landed.' 594, 252. 108 noncitizens across borders evil remedied borders, immigration quarter needed regulation.' designed solve remedied,' satisfies own applies definition obscure reality applies. 109 Reversed. 110 STEWART dissents Part dissenting DOUGLAS. 111 DOUGLAS, dissenting. created, Penn-Central Merger cases,1 'hydraulic pressure' Holmes said, 'makes previously seem doubtful, principles bend.'2 113 moral measure responsibility, N Immigration Nationality Decisions always assumed, undertakes sanction fraudulent Eliz.,3 reluctant conclude, implicating branch lawless maneuver gigantic proportions. But, baldly put, tour de 114 10, bars passing 'impairing Obligation Contracts.' enjoined, restrained person deprived 'property' 'due law.' apart impair contracts Due Process Clause.4 power, Amendment,' writing Louisville Joint Stock Land Radford, 589, 854, 863, 1593 held. 115 far concerned pound flesh, dismembering liquidating debtor. subverted manner. 205: 116 unit; divided piecemeal goods. sold, sold all, unit Its halted continuous, uninterrupted 117 findings 101(a) 701(a) Hence objective preserving six railroads5 corporation (for convenience called Conrail6) means chosen transgressed boundaries. 118 'taken First obligatory companies trustees, stockholders, judge option. makes abundantly concede, dubbed 'a corporation' shows prospect profitable basis.7 1970, December 31, Court,8 reviewing, possible. values ride today's operations.9 framework 'just compensation' 'securities' 716(d)(1) common stock, entity generates costs ends meet, expect can. sure, eligible incorporated nonprofit association exceeding $1,500,000,000, Treasury, (1970) billion half Conrail; $500,000,000 solely rehabilitation modernization' 210(b). apportioned pledged 303(c)(2) three things: Reallocate issued; Require securities; 121 Enter 122 token payment. Issuance dividend marketable bring back forces plague 77. 'minimize potential debt burden' 206(i), 716(i) 301(d) Government, majority outside—the Chairman President five others named Senate. subordinate assumption watch-dog quite superfluous. serviced, marketed were, add element upshot mostly sprinkling bonds assuming expended started 123 489, 2108, (1970), road shut down measured value' sold. value. cases, say anywhere near value.10 Value substantial attributed existing roads inherited prospects generating charges nil, remote. irony call deficiency. eat had. 124 vicious character cream-down cramdown class holdup allows cram-down security holders hearing. finding. vote 125 lowered barriers foisted done purporting 'public interest.' purpose; standards 126 relies, seek sustain assumed General, initially arguing reaching question, pitches chiefly 127 confers 128 129 permits excludes says '(o)ne searches vain sentence alleging compensation." observation beginning analysis. enough note carves exception 1491 words. 'Statutory concentration words; rather, corpus inspired ostensibly provisions.' Boys' Markets, Incorporated Retail Clerks, 398 235, 250, 1583, 1592, 199 precept inquire mutually divergent approach co-exist setting. mechanism traditional avenue broader cases. circumstances, supplanted implication. my view, 130 strict timetable bringing operation. Act.11 deemed 208(b). Once approved, certify certification, 303(a), thereafter, 131 sought expedition creating apparently distribution contributing railroads.12 policy carries exclusively Court; 209(b) appealable directly give highest priority' seven pendency 'would expeditious proceedings.' 303(d). 132 odd appendage streamlined described. vesting plan' raises doubt compatible Act.13 amplified looks participation. setting consolidating limiting appeals, demanding decisions, round begin exhausted. Despite obvious frustration expedition, still justified arrangement infusion funds. seen, circumvented allowed. 134 interest' estate.' tools rectifying unfairness inequity indicate commitment preferred 303(c)(2)(A). insufficient, Government-guaranteed 303(c)(2)(B), million,14 limitation. (c)(2) apparent protecting liability magnitude. principal architects House, explained assurances exposure early debate bill: 'Mr. ADAMS. bill $200 (later million) loan there. 136 'Under loads bonds, lowers 137 RUPPE. Does deliver stock? seems me 138 correct, corporation's money.' 36355 139 large unnoticed. 36352 Skubitz) Shoup). adverted relaxing 'second look' concluded; improve balance sheet What clear, choice allow life unalleviated aid.15 chances choose, Assurances eventuality conference report: 141 KUYKENDALL. Speaker, ask gentleman Washington clarify judgment. lot fears key Treasury. 142 'Will keep happening proceedings? 143 definite bill. shifting spent, signed President. managers, lowest guarantees. 144 true, (Mr. Adams) course, protection, Board Directors, officials, owner block shares, is? 145 correct. controlled might, ever, anything with. 146 'During officials. 147 judgments creditors; correct? 149 money? 150 correct.' 151 None comments refer 'key Treasury' powerful, reference 'assess(ing) money' so, does. me, clear: aggrieved circumvent embodied Act.16 Adams seizes concession overborne manifestations above. Adams' remarks, straightforward accords cited above urged uphold His (and Conrail) fail good thereof 152 asked infer applying favors interpretations avoid questions. Attorney Delaware Hudson 213 366, 407 408, 527, 836 (1909); Jin Fuey Moy, 241 394, 1061 (1916); Richmond Screw Anchor 275 331, (1928); Crowell Benson, 62, 285, 296, 598 (1932); Screws 325 91, 98, 1031, 1033, 1495 (1945). originally stated, proposition 'reasonably susceptible interpretations,' choose steers collision limitations. supra 407, 535; 258 204, 217, 281, 283, 566 (1922). purpose, tailored infirmity. FTC Tobacco 298, 336, 696 (1924). recent applications, occasion fidelity Rumely, 345 41, 543, 770 (1953); CIO, 106, 130, 1349, 1361, 1849 (1948) (Rutledge, believe, rewriting Acts, concurred avoided. Today's Rumely CIO. construction, narrowed regulatory confronting overreaching. Blodgett Holden, 142, 148, 105. 107, 306 (1927) (Holmes, concurring); Missouri Boone, 466, 341, 688 (1926). Today, expands opportunities correcting program, foisting device chose rejected. represents sheer force. Seeger, 163, 850, 865, 733 (1965) (Douglas, transgresses bounds Cardozo Moore Ice Cream Rose, 289 620, 1265 bears repeating: 153 "A construed, fairly unconstitutional, score.' (Citation avoidance difficulty disingenuous evasion. revealed distinctly ignore .. faced answered.' 379, 622. 154 Aptheker State, 378 500, 515, 1659, 1668, 992 (1964); 129—130, 1360—1361 155 drafters wrote background regarded escaping Challenges permitting deprivations occurred before. adverting Corp., Branch, (1937); Ecker Western 318 692, 892 (1943).17 construing embrace disregards tradition, opens diligently avoid—the imposition burden acquisition. 156 judgments. amounting $100,000 appropriation, sum Ordinarily, pays routine. Glidden Zdanok, 370 530, 570—571, 1459, 1483—1484, 671 exceptional billions dollars. 157 amaze legislators drafted voted enacted told end dig taxpayers' pockets appropriated unknown billions—perhaps billion—for 'taken.' 158 many 'geographical' uniformity. main treat area another. Frankfurter, concurring Bondholders-Protective 172—173, (1946):18 159 geographic satisfied treated administration regardless sits. 190, 861, 1113. wiping among forty-eight commercial transactions. intend consequences took passed familiar results diverse codes day wiped transmuted after.' 160 curious continuance cut Recourse for, below, impairment 161 102(13), 702(13) defines 'region.' 'region' confined 202(b), 712(b) performance duties. Reporting 203(a), 713(a) likewise confined. 204(a), 714(a) office—Rail Services Planning Office—in Commission. 205(a), 715(a), 'final covers 206(a), (c), 716(a), short, procedure region. wherever reorganizations powers' court' has. reorganization' 102(12) includes benign treatment importance ranks holders: South considerate minor exceedingly substantial. 163 whereby reorganizing company. mandates 'this Cases envisages bifurcated nonrail hand whereupon diversities explored. advantages enjoy. 164 sale proceeds. 77(o). 303(b)(2) 'free encumbrances.' (3) 77(d) consummated, (as Commission) equitable.' post facto. pressures consummate alternatives dismissal. illustrate, barred; expertise deference. 472—475, 706—708, (1943). facto prerequisite robs protective enjoy geographical areas. 166 (4) Office hearings 'preliminary plan,' 207(a)(2), prepares submits 208. submission perfunctory sense clears hurdle 77(e) ('all interest') heard approves hearing granted. eliminated reorganizations.19 obviously 'uniformity' mandates. heretofore recognized honored clause,20 sanctioned harsher may, credit existent another.21 dreamed allowing leniently another.22 168 My mean, four ways lacking group 303, fair-brances.' 169 bow pressure events expedite carriers. An emergency often act. disregard Just Compensation 170 fear generated historic jealously protected centuries justice. (U.S. Title: Cases) consolidated Secretaries capacities incorporators USRA. second Columbia sole action. third (New Trustee) Transportation. Three-judge convened but, parties, actions disposition intervened. Three Central; 76—167 USRA; 74—168 States; 74—166 Trustee. 'Region' 'States Maine, Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, Jersey, Pennsylvania, Delaware, Maryland, Ohio, Indiana, Michigan, Illinois; Columbia; contiguous owned doing primarily aforementioned jurisdictions (Interstate Commerce) order).' supp. ICC Order Ex parte 293, areas Louisville, Ky.; St. Louis, Mo.; Kewaunee Manitowoc, Wis., Region. Fed.Reg. 3605 Reading (In Bky. 71—828, E.D.Pa.), Erie Lackawanna B72—2838, N.D.Ohio), Jersey B401—67, N.J.), Lehigh Valley 70—432, Boston Maine 250—M, Mass.), Ann Arbor 90833, E.D.Mich.), River 72—B—419, S.D.N.Y.). lessors leased lines petitions 70—347: Canal Co.; Beech Creek Cleveland, Cincinnati, Chicago Cleveland Pittsburgh Connecting Michigan Northern Penndel Philadelphia Baltimore Trenton Pittsburgh, Youngstown Ashtabula Fort Wayne Baltimore. Emergency 661 $125 certificates found, inter alia, threat imminent cessation essential practicable meeting certificates. time; 234 (N.D.Ohio, May 1974); (Mass.1974). (E.D.Pa.1974); 854 (Secondary Debtors), 821 401—67 (N.J. 28, 377 475 (S.D.N.Y.1974). infra, September 30, 895. Two ordered 481 74—90833 (E.D.Mich. 1974). 'Within application panel multi-district 1407 conducted composed judges selected include leased, operated, Panel Multidistrict Litigation Circuit Henry Carl McGowan, Roszel C. Thomsen compose 206(c) follows designation Plan: '(c) Designations. designate— '(1) region— (Conrail); '(B) offered offer accepted, railroad; designate additions subparagraph (A) paragraph accept offer; '(C) purchased, Passenger .; '(D) purchased needs commuter intercity service; '(E) government responsible person, suitable purposes, highways, forms transportation, conservation, energy transmission, education health care recreation '(2) paragraphs subsection 206(d) Conrail: '(d) Transfers. 'All with, to, principles: railroad, (including (USRA)) 213, 214, 215 follows: '(b) Maximum authority. 'Except subsections $5,000,000, expended. Association. 'There $26,000,000, expended.' 724 'Prior chapter, Secretary, agreements (or acquisition, maintenance, improvement facilities equipment Agreements type quality improvements agreements. Notwithstanding 720(b) 720(a) finance obligations. $150,000,000. 215, 725 tion, $1,000,000,000. modernization 716(c)(1)(C) title. forth '(a) assistance. authorized, establishes, recipients maintain level Authorization appropriations. $85,000,000, 723 Transportation). preparing $12,500,000, Office. func- 450 extended Law 93—488, 1465, Concerning 208 provides: General. Directors Houses Foreign Representatives calendar transmittal passes stating Revised disapproval section, cooperation assistance Office, prepare, determine, adopt revised submitted section. Computation. 'For section— continuity broken adjournment sine die; excluded computation 60-day period.' 208, 303(d) Appeal. appealed 1253 28: Provided, dismiss.' attempted (c). shareholder Central. product merger Railroad. 389 486, 602, (1968). promise fulfilled. dominates northeast-midwest serves 55% Nation's manufacturing plants employing 60% country's industrial employees. 20% freight cars loaded pass 20,000 miles track, 70% traffic involves Midwest Northeast Region, 5392, 5401 (1974); H.R.Rep.No.93 H.Rep.). lines) accounted 94% mileage 87% revenues realize anticipated savings approved. Huge continued. Financial Collapse SEC Staff (1972). February 1971, Premises Reorganization, Documentary Submission 'overriding perform simply lend themselves operator how efficient. speedy elimination produce losses, respond insists conditions.' correctness considers investors smaller discusses concluded, 'puzzlement.' 954. consequence, remanding affirming 'after Court' instant appeals. severely plant taking.' $85 grants $150 plant. Nor found: (contend) fixing award, (2)(B), 303(c)(2)(C). hardly satisfactory permissible,[*] if, opponents urge, themselves, enlarging avail.' 925—926. [ *]'The version report accompanying conveyance.' 53. contains H.R.Rep.No. 93—774, 93d Cong., 1st Sess. (1973), deletion.' indicates, authorized. officer implication, government,' hence Hooe 218 322, 85, 89, 1055 (1910). Sheet Tube Sawyer, 343 579, 485, 1153 inapposite HARTKE. providing quasi-government words, exchanging become encumbrances. changed. nonrailroad them. talk wringer, (sic) relatively slim, wringer. what, effect, 'cram them settlement ruled fair. officials Tr. Oral Arg. 50—51. At takings resulting ('As White asking sue maybe could'); ('Now, Causby concerned, Kincaid try statements'); ('If decide, along line, lawful mistake, merits'). heart strong inseverable remainder void. 45—46, concede sufficient. He suggests, impossible, reasons, publicly years. effectively zero. Aetna Haworth, 227, 240—242, 461, 463—465, 617 Maryland Casualty Oil 312 270, 512, 826 (1941); Anti-Fascist Refugee McGrath, 341 123, 140—141, 624, 632—633, 817 (1951); 154—155, 639—640 Ashwander TVA, 297 346—347, 482—483, (1936) (Brandeis, Poe Ullman, 497, 502—503, 1752, 1755—1756, 989 Fullam disagreed 530—533. Among things, observed inextricably address. suggested, 122—124, deficit depend likelihood successful reorganization; facially immediate alone. unlike erosion. inter-relationship pertinent. entirely pointless buildup severable injuncture anyway completely ripe, remand merits. undesirable unnecessary. implementation. occasioned impede frustrate accomplishment objectives. ventilated proceeded '(i)t likely' sale, executed 318—319, 370—371. overwhelming percentage trackage, 12, inconceivable destroying achieving 101, 701, 716 206(c)(1)(B), 206(d)(2), 209(c)(2), 303(a)(2), 701(c)(1)(B), 716(d)(2), 719(c)(2), 743(a)(2), purchaser agrees purchase. 206(d)(4). portion attractive presumably accomplished novel envisioned properly 'Notwithstanding matters properties.' 303(b)(1) commands deposited 'shall' court.' 303(c)(1) 'After added.) command disapproved, refuse equitable. S. 2767, 35. deleted. (c)(1) Report, text. infer, mandatory, H.R.Conf.Rep.No. 93—744, Pages 57, 58, U.S.Code Cong. Admin.News, 3322 states here, scheme, 'subject technical clarifying changes.' justiciability apprehended criminal prosecution instigate usually discretionary prosecuting authorities, disobey sanctions invoked him. complaining himself, disputes begins case-by-case basis, considering complainant certainty disobedience prosecution, actually ensue. Compare Golden Zwickler, 394 103, 956, (1969), (1965); Steffel Thompson, 415 452, 459, 1209, 1215, 505 disapproved house changed unable execute purchases (within date) sales date). date; earlier. derived unconstitutional. 142. noted, information. 931. stage possibility, informed well-developed facts. 36, infra. define H.R. 9142, 102(5); 31. adopted. Trustee's indefinitely similarly premised relationship Both stipulation unknown, valuating Harlan wrote, 'there why faith 1484, Albert Hanson Lumber 261 581, 442, 444, 809 Silesian-American Clark, 332 469, 480, 179, late. Interest just-compensation runs Thayer-West Point Hotel 585, 588, 398, 521 complex. Phillips Commissioner, 283 596—601, 608, 611 613, 1289 (1931). inadequacy regard distinction resolutions contexts. irresponsible: pretermit suggest turned guarantees, figured money. Cross-Appellant 45; Appellee 56. 206(h), special-benefits relevance 'securities benefits' (emphasis added) 206(d)(1). disagree 'other consideration. dispute $250,000,000 reimbursement labor evaluating exchange. 509, 779 146—147, legislature specify judiciary. erroneous 327, (1893). condemned arriving amount, settle restate legislature, ultimately commands. dictate amount. Directors. consist articles bylaws (Conrail): per centum more, indebtedness debts owing members Transportation), president appointed President, advice Senate.' distinguish classes justified.' object scope. dissenters, elements rejection.' 1303, L.eD. notes represent 'taking' Berman Parker, 348 unusual disparate laws: 'Railway corporations definitely 1910 (c. 838, 839), interest; involved, evidently 'insolvent mature." 671—672, 25—29; 6—14. O.R. 372, 1100, (1967); (1968); summarize dissent, 452—459, 1142 1146, chicanery behind creation 'new Frankensteins' deal, 455, 1144. Securities 193 197, 401, 436, 468, 679 (1904) (dissenting opinion). Eliz., (1570); G. Glenn, Fraudulent Conveyances Preferences 1940). Gold footing, Hughes Norman 885 regulate currency involved. subsidiaries; Jersey; 741 debtor) time'; appealed. designates 303(c)(2), 743(c)(2) preliminary aspects conflicts 895 (D.C.1974). study commissioned file ICC, estimates 'continued $13,585,493,000 'liquidation uses' $3,532,110,000. PCTC Physical Asset Valuation Study (Apr. 1973), Fin. Docket 26241. (Joint 40). worth considerably million.' 864 (E.D.Pa.1974) (Fullam, Fullam's noted: 'As simple maximization values, 'going concern' usual sense, justification established: 1) streamlining, consolidations, changes earning profitability restored; assemblage for. Port Rapid Tubes, N.Y.2d 457, N.Y.S.2d 231 734, cert. 390 1002, 1244, (1967).' 537 717(c) committee USRA's 420 540 93—488. committee, 'approve meets requirements (prescribing contents goals).' 718(a) 93—620, 54—55 originated thereof.' 501(a)). explains 'Title preserves 47. attached disparity versions. 56—59 $1.5 billion. Only $1 billion, roads. leaves 303(c)(2)(B). roads, armed reflect assets, form. Liquidation would, most, terminate asset unprofitable operations. himself get relinquished, involuntarily, (p. 7). ignores senior debt, unscrambling 930. Appearing curiae argument, reads indicating Ante, 132—133. submitted, urges cites printed, 174—175. post-enactment expressions caution, warning 'relatively spontaneous responses counsel questioning Court,' Moose Lodge Irvis, 170, 1965, 627 (1972), submissions. Viewed entirety, history. bear nonavailability 177. estimate fixed, open- ended contribution subsidies service. authorization, 402 762 annual $90 million. Significantly, uncertain potentially astronomical 30. similar. 'Minimizing Taxpayer Expense' explains: 'Although rationalization uninitiated, effort design minimizes taxpayer. healthy ones arose desire via umbrella calls sector loans repaid recipients. instance excellent earnings prospects.' S.Rep.No.93—601, 3259 $150,000,000 Secretary's completion 125—126. Had foregoing worthless. Frazier-Lemke farm mortgagors bankruptcy, mortgagee's security. there, avoided inferring escaped attention; (1932), earlier, author Radford previous Term. peculiarities relating, dower exemptions, mortgages, remedies conveyances. Stellwagen Clum, 245 605, 613—615, 217—218, 507 (1918); two-thirds normally required. nevertheless approve 'is facts.' approving rejected, 531—535, 1301 majority, ante, 158—159, nonuniformity; Similarly L. classified persons citizenship entry, 'alike

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