Court Opinion

ID: 9419190
Source: CourtListenerOpinion
Date Created: 2023-08-02 22:47:21.169591+00
Date Added: 2024-06-11T17:22:16.149506
License: Public Domain

Mr. Justice Douglas:
While I agree with the opinion of the Court, I think an elaboration of the point, which is the nub of the case, is desirable in view of certain observations in the dissenting opinion.
Appellant is a corporation formed under § 141 of New York Railroad Law, which provides for consolidation of railroad corporations. On the filing of the articles or agreement of consolidation, the several constituent companies “shall be one corporation by the name provided in such agreement.” And § 141 also provides that “such act of consolidation shall not release such new corporation from any of the restrictions, liabilities or duties of the several corporations so consolidated.” By § 143 all debts of the constituent companies “shall thenceforth attach to such new corporation, and be enforced against it and its property to the same extent as if incurred or contracted by it.” We are pointed to no provision of the New York law which would permit the creation of the new consolidated corporation without the attachment of the debts of the constituent companies.
Snyder v. New York, C. & St. L. R. Co., 118 Oh. St. 72, 160 N. E. 615, aff’d 278 U. S. 578, held that authority from *374the Commission was not necessary to create this consolidated corporation. A necessary and inherent incident of its creation was the attachment of these obligations. Hence, I do not see how we can say that, although authority from the Commission was not necessary to create appellant, such authority was necessary in order for this consolidated corporation to meet the requirements which the New York law exacted as conditions to its creation. But if we held that an attachment of liability under the New York Consolidation Act was an “assumption” of liability within the meaning of § 20 (a), we would be doing just that. Hence, I feel forced to conclude that, in case of this type of consolidation, “assumption” in § 20 (a) does not include attachment of liability by virtue of the filing of articles of consolidation under a state statute, though it would, of course, include the issuance of any security or the incurrence or extension of any obligation subsequent to consolidation. Such is one consequence of the failure to follow Commissioner Eastman’s views in Acquisition and Stock Issue of N. Y., C. & St. L. R. Co., 79 I. C. C. 581. But I do not see how, in all fairness, we can reopen at this late stage the unfortunate decision in the Snyder case.