Erie-Lackawanna Railroad v. United States

279 F. Supp. 303, 1967 U.S. Dist. LEXIS 11748
CourtDistrict Court, S.D. New York
DecidedJuly 3, 1967
DocketNos. 66 Civ. 2860, 66 Civ. 2903, 66 Civ. 2914
StatusPublished
Cited by4 cases

This text of 279 F. Supp. 303 (Erie-Lackawanna Railroad v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Erie-Lackawanna Railroad v. United States, 279 F. Supp. 303, 1967 U.S. Dist. LEXIS 11748 (S.D.N.Y. 1967).

Opinion

PER CURIAM.

Memorandum, Order

By a supplemental report and order on reconsideration and further hearing in F.D.No. 21989, Pennsylvania Railroad Company — Merger — New York Central Railroad Company, 330 I.C.C. 328, served June 12,1967, the Interstate Com[305]*305merce Commission authorized consummation of the merger of the Pennsylvania Railroad Company (PRR) and the New York Central Railroad Company (NYC) on the effective date of the order, to wit, July 17, 1967; the order provided that if the authority therein conferred was not exercised within 180 days thereafter, it should be of no further force or effect. At the same time the Commission issued a further report and order in F.D.No. 21510, Norfolk & Western Ry. Co.' and New York, Chicago & St. Louis Railroad Company — Merger, etc., directing inclusion of the Erie-Lackawanna (E-L), the Delaware & Hudson (D & H) and the Boston & Maine (B & M) in the Norfolk & Western (N & W). These rulings have precipitated a number of motions in these actions, have given birth to several new actions, and threaten to spawn still more. N & W has brought suit in the Western District of Virginia to enjoin enforcement of the inclusion order. E-L has brought an action in this court to enforce that order, which N & W has moved to dismiss; the United States and the ICC have moved in the Western District of Virginia for a stay of N & W’s action in that court. The D & H and B & M, both of which have petitioned the I.C.C. for reconsideration of the terms of the inclusion order, have also sued in this court; they support the direction for their inclusion in the N & W but challenge the financial terms. The Borough of Moosic has brought an action in the Middle District of Pennsylvania to enjoin the orders both in the merger ease and in the injunction case; we are advised that the City of Pottsville has joined in that action and that Milton J. Shapp and the City of Scranton, intervening plaintiffs in these actions, have also intervened as plaintiffs therein. The Trustees of the Central Railroad of New Jersey (CNJ), a plaintiff in one of the actions in this court, have informed us of their intention to urge the CNJ’s objections to the PRR-NYC merger not in this court but in the District of New Jersey. The Reading Company, also a plaintiff here, intends to pursue a similar course either in the Eastern District of Pennsylvania or by intervention in some other suit, presumably the CNJ’s. The B & O, C & O, N & W, and Western Maryland, plaintiffs or intervening plaintiffs here, also assert and presumably intend to pursue supposed rights to attack the merger order by new actions in what they term “a court of appropriate statutory venue,” to wit, the district courts for Maryland, Northern Ohio, and Western Virginia. Such a proliferation of actions in many different courts is a far cry from the expedited and early determination of review proceedings to which a majority of the Supreme Court referred in reversing our denial of a temporary injunction, Baltimore & Ohio R. R. v. United States, 386 U.S. 372, 392, 87 S.Ct. 1100, 18 L.Ed.2d 159 (1967); indeed, considered in the aggregate, it outruns even the fears of the four dissenters as to what may be done by “ingenious counsel bent on delay.” 386 U.S. at 472, 87 S.Ct. 1100.

In an effort to introduce a modicum of order into so much of this chaos as relates to the Commission’s supplemental order in the merger case, PRR and NYC have moved that we require each plaintiff or intervening plaintiff in the instant actions to file supplemental complaints setting forth the claims now made in the light of the Commission’s supplemental report on reconsideration, direct that the complaint of any such pasrty not so amending its complaint be dismissed with prejudice, and set a schedule for responsive pleadings, brief and final hearing. There are several kinds of unfinished business in these actions. One concerns objections to the Appendix G protective conditions, now revised, whether on the ground of inadequacy from the standpoint of the three protected roads or on the ground, previously urged by B & O, C & O, N & W, CNJ, the Reading, the Western Maryland, and C. & E. I., “that these provisions created a ‘community of interest’ between the protected roads” and the merged company which would produce additional diversion, see 259 F.Supp. at 970, 976; we have been told by counsel for the N & W and [306]*306other plaintiffs that they regard the revised conditions as even worse in this respect. These railroads and possibly others apparently intend to argue also that the Commission’s prescription of any protective conditions was inconsistent with a passage in the Supreme Court’s opinion, 386 U.S. at 390, 87 S.Ct. 1100. In addition certain special objections raised by C. & E. I., the Western Maryland, CNJ and the Reading are as applicable to the supplemental order on reconsideration as to those of 1966. Broadest of all is the objection of intervening plaintiffs Milton J. Shapp, the City of Scranton and the Borough of Freedom,1 which assails the validity of the merger on a wide front. Inherent to all these is the question, raised by another motion discussed below, of extending the injunction against consummation until these issues have been decided.

The N & W, B & O, C & O, Western Maryland, the Trustees of the C.N.J., the Reading,2 Shapp and the City of Scranton oppose the motion made by the Pennsylvania and the Central; the United States, the Interstate Commerce Commission, and the states of New York and Connecticut support it. The basic claim of the railroads opposing the motion is that the actions in this court have ended and that anyone seeking to attack the supplemental report and order on reconsideration may and indeed must do so in a new action in “a court of appropriate statutory venue”; the N & W and the railroads allied with it contend also that if the inclusion order is ultimately sustained and if the stockholders of the protected roads immediately accept, the protective conditions may never take effect and hence are not now ripe for review. Shapp and the City of Scranton also contend that the actions here have come to an end; they prefer to conduct their further attack on the merger by intervening in the suit just brought by the Borough of Moosic in the Middle District of Pennsylvania against both the merger order and the inclusion order rather than “in a distant and foreign forum * * *.”

The parties opposing the motion are wrong in saying these actions have terminated. The subject of the complaints of the plaintiffs and intervening plaintiffs was the Commission’s approval of the merger, as it then stood or as it might stand in the future. All that we had before us for decision last fall and the Supreme Court had before it on appeal, see 386 U.S. at 378, 87 S.Ct. 1100, were motions for interlocutory relief, to wit, temporary injunctions of the merger pending the reconsideration the Commission had already granted; the actions could not proceed to final hearing until that had been completed. The Supreme Court made it clear that the issues of “the validity of the merger, the special conditions of Appendix G, the modified order of the Commission, or the peripheral points posed by the various parties,” ibid., remained for final determination in these actions after the Commission had made its supplemental order on reconsideration. Compare Texarkana v.

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

Related

Simmons v. Interstate Commerce Commission
716 F.2d 40 (D.C. Circuit, 1983)
Sheldon v. Amperex Electronic Corp.
52 F.R.D. 1 (E.D. New York, 1971)
Nixon Construction Co. v. Frick Co.
45 F.R.D. 387 (S.D. New York, 1968)

Cite This Page — Counsel Stack

Bluebook (online)
279 F. Supp. 303, 1967 U.S. Dist. LEXIS 11748, Counsel Stack Legal Research, https://law.counselstack.com/opinion/erie-lackawanna-railroad-v-united-states-nysd-1967.