Brotherhood of Maintenance of Way Employees v. United States

221 F. Supp. 19, 1963 U.S. Dist. LEXIS 8037
CourtDistrict Court, E.D. Michigan
DecidedAugust 13, 1963
DocketNo. 23467
StatusPublished
Cited by21 cases

This text of 221 F. Supp. 19 (Brotherhood of Maintenance of Way Employees v. United States) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brotherhood of Maintenance of Way Employees v. United States, 221 F. Supp. 19, 1963 U.S. Dist. LEXIS 8037 (E.D. Mich. 1963).

Opinion

O’SULLIVAN, Circuit Judge.

This statutory three-judge court was convened upon the filing of a complaint by the Brotherhood of Maintenance of Way Employees against the United States and the Interstate Commerce Commission. 28 U.S.C.A. §§ 1336,1398, 2284 and 2321-2325. The complaint attacks the validity and sufficiency of the report and order of that Commission which, pur[22]*22suant to 49 U.S.C.A. § 5(2), approved, under specified conditions, the acquisition by the Chesapeake & Ohio Railway Company of capital stock control of the Baltimore & Ohio Railroad Company. The Commission also approved the issuance by the C & O of the required number of shares of its own authorized stock in exchange for capital stock of the B & O. 49 U.S.C.A. § 20(a). The Commission’s report is styled Chesapeake & Ohio Railway Company — Control—Baltimore & Ohio Railroad Company, 317 I.C.C. 261 (1962). Subsequent to the filing of the complaint, the Brotherhood of Railway and Steamship Clerks, Freight Handlers, Express and Station Employees, and others, were allowed to intervene as parties plaintiff, and the above mentioned railroads were permitted to intervene as parties defendant. We shall refer to the C & O acquisition of B & O stock as the C & O-B & O affiliation.

Broadly stated, the attack upon the Commission’s report and decision is bottomed upon plaintiffs’ and intervenors’ contentions that the report contained insufficient findings upon which to base its conclusion; that the Commission gave inadequate consideration to the effect of the affiliation upon other railroads and railroad employees, and upon the public; and that the Commission erred in denying motions made by intervening opponents of the C & 0 application to defer decision on the matter and to consolidate the hearing before it with other pending matters.1 The Department of Justice supported such motions.2 The other matters pending were the merger application, of the New York Central Railroad Company and the Pennsylvania Railroad Company, and the unification application of' the New York, Chicago and St. Louis; Railroad Company (The Nickel Plate), the Wabash Railroad Company and the' Norfolk & Western Railroad Company. These applications are pending before the-Commission, and are at intermediate-stages in the hearings necessary to final; decision.

It should be preliminarily observed that there is little dissent from recognition that if the railroads of this-, country are to survive as instrumentalities to adequately serve the transportation needs of the country, mergers of the-large and small railroads in various, groupings will have to take place. The-record before us seems to make clear that this trend to merger will likely eventuate-in there being substantially fewer independently operating railroad systems-serving the northeast quadrant of the United States than now exist. It may be that the ultimate grouping into these-major railroad systems will follow the lead made by the larger railroads now-applying for approval of plans presently* before the Commission. It should be-borne in mind, however, that the Transportation Act of 1940, 54 Stat. 899, 49 [23]*23U.S.C.A. § 1 et seq., does not give to the Commission or to the courts any power to compel the regrouping of the railroads involved, or to require any railroad to merge or join with any other railroad. St. Joe Paper Co. v. Atlantic Coast Line R. Co., 347 U.S. 298, 305, 74 S.Ct, 574, 98 L.Ed. 710, 719. As early as 1920, Congress recognized that the health of our railroads could only be protected by merging into fewer systems the facilities and economic power of the great number of railroads then in existence in the United States. To serve that end, Congress enacted the Transportation Act of 1920, which directed the Interstate Commerce Commission to consider the problems of consolidation, make the necessary investigations, and to go forward with a national plan for bringing about such a reorganization of the railroads of this country. The Transportation Act of 1920 directed the Commission to “prepare and adopt a plan for the consolidation of the railway properties of the continental United States into a limited number of .systems”. 41 Stat. 481. No good purpose would be served by here detailing the history of the efforts of the Commission and Congress to provide for compulsory reorganization of the country’s railroads. A summary of that history may be found appended to the opinion of the Supreme Court in St. Joe Paper Co. v. Atlantic Coast Line R. Co., 347 U.S. 298, 315-321, 74 S.Ct. 574, 98 L.Ed. 710, 724-727. Suffice it to say that by 1940 it was apparent to both the Commission .and Congress that the national plan was a failure. Schwabacher v. United States, 334 U.S. 182, 193, 68 S.Ct. 958, 92 L.Ed. 1305, 1313. Congress then took a new approach in the Act of 1940 by authorizing that the needed mergers be initiated and carried out by the voluntary and private action of the railroads involved, subject always to the supervision and approval of the Interstate Commerce Commission. Schwabacher v. United States, 334 U.S. 182, 193, 68 S.Ct. 958, 92 L.Ed. 1305, 1313. It might be well to mention at this time that during the year 1962, interested parties sought to have Congress declare a moratorium upon the accomplishment of mergers of railroads with assets in excess of $200,-000,000.00, unless the mergers met the standards of the anti-trust laws. Although extensive hearings were conducted, at which both proponents and opponents of the Interstate Commerce Commission’s case-by-case approach to the merger problem were heard, no legislation has emerged from the proposal. See, Hearings on S. 3097 Before a Subcommittee of the Senate Committee on the Judiciary, 87th Cong., 2d. Sess. (1962).

The action of the C & O and B A O railroads here under consideration was initiated by these railroads pursuant to the 1940 Act. The Commission, in considering the application of the CAO for control of the BAO, was bound to consider whether or not the sought for control would be consistent with the present policy of Congress, and whether or not it would be detrimental to or inconsistent with the public interest, the interest of labor, and whether overall desirable ends would be served by allowing a reorganization of railroads through stock acquisition, mergers, and otherwise. See, New York Central Securities Corp. v. United States, 287 U.S. 12, 25, 53 S.Ct. 45, 77 L.Ed. 138, 146; McLean Trucking Co. v. United States, 321 U.S. 67, 87, 64 S.Ct. 370, 88 L.Ed. 544, 556-557.

The pertinent statutory authority under which the attacked action was taken, Title 49 U.S.C.A. § 5(2), sets forth in subparagraph (c) thereof the matters that must be considered by the Commission before approving such action:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Southern Pacific Transportation Company and St. Louis Southwestern Railway Company v. Interstate Commerce Commission and United States of America, Denver & Rio Grande Western Railroad Company, Atchison, Topeka & Santa Fe Railway Company, Union Pacific Corporation, and Chicago & North Western Transportation Company, Intervenors. Denver & Rio Grande Western Railroad Company v. Interstate Commerce Commission and United States of America, Chicago & North Western Transportation Company, Intervenor. Edward K. Wheeler v. Interstate Commerce Commission and United States of America, Chicago & North Western Transportation Company, Intervenor. Kansas City Southern Railway Company and Louisiana & Arkansas Railway Company v. Interstate Commerce Commission and United States of America, Chicago & North Western Transportation Company, Union Pacific Railroad Company, Denver & Rio Grande Western Railroad Company, Atchison, Topeka & Santa Fe Railway Company, Southern Pacific Transportation Company, and St. Louis Southwestern Railway Company, Intervenors. Atchison, Topeka & Santa Fe Railway Company v. Interstate Commerce Commission and United States of America, Union Pacific Railroad Company, Denver & Western Railroad Company, and Chicago & North Western Transportation Company, Intervenors. Brotherhood of Maintenance of Way Employees, Brotherhood of Railway Signalmen, Brotherhood of Railway & Airline Clerks, International Association of MacHinists & Aerospace Workers, and United Transportation Union v. Interstate Commerce Commission and United States of America, Union Pacific Railroad Company, and Chicago & North Western Transportation Company, Intervenors. Atchison, Topeka & Santa Fe Railway Company v. United States of America and Interstate Commerce Commission, Union Pacific Railroad Company, and Denver & Rio Grande Western Railroad Company, Intervenors. American Train Dispatchers Association v. Interstate Commerce Commission and United States of America, Chicago & North Western Transportation Company, Intervenor
736 F.2d 708 (D.C. Circuit, 1984)
Chesapeake & Ohio Railway Co. v. United States
571 F.2d 1190 (D.C. Circuit, 1977)
Quirke v. Chessie Corp.
368 F. Supp. 558 (S.D. New York, 1974)
WESTON v. Reading Co.
282 A.2d 714 (Supreme Court of Pennsylvania, 1971)
United States v. United States
296 F. Supp. 853 (District of Columbia, 1968)
Borough of Moosic v. United States
272 F. Supp. 513 (M.D. Pennsylvania, 1967)
Soo Line Railroad v. United States
271 F. Supp. 869 (D. Minnesota, 1967)
Baltimore & Ohio Railroad v. United States
386 U.S. 372 (Supreme Court, 1967)
Erie-Lackawanna Railroad Company v. United States
259 F. Supp. 964 (S.D. New York, 1966)
Louisville & Nashville Railroad v. United States
244 F. Supp. 337 (W.D. Kentucky, 1965)
Florida East Coast Railway Company v. United States
242 F. Supp. 14 (M.D. Florida, 1965)
BROTH. OF MAINT. OF WAY EMPLOYEES v. United States
221 F. Supp. 19 (E.D. Michigan, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
221 F. Supp. 19, 1963 U.S. Dist. LEXIS 8037, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brotherhood-of-maintenance-of-way-employees-v-united-states-mied-1963.