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Commission of Department of Public Utilities of Commonwealth, of Massachusetts v. New York, N.H. & H.R. Co
178 F.2d 559
2d Cir.
1949
Check Treatment

*2 HAND, N. Before AUGUSTUS CLARK, CHASE, Judges. Circuit

CHASE, Judge. Circuit appeal phase of the re- is another

organization of the Bank- under Section 77 Act, the New ruptcy U.S.C.A. § Railroad and Hartford Depart- Company. The Commission ment of Public Utilities Common- appealed from wealth of Massachusetts re- reorganization order interfering re- straining it from passen- curtailing organized New Haven’s 1, 1949, what ger as March to 'be the lines of the Old used now, Company as a re- but what Railroad lines of reorganization, sult are the the Old division of Haven, appellee prin- herein. As the cipal question is of construction of the one provisions reorganization lating service on the Old lines, of the manner in a review provisions arrived at is which those were necessary.

On October the New operating the Old lease, petition year filed its under a 99 June, when reorganization. rejected the trustees New Haven lease, Colony Railroad the Old petition filed Company proceedings, and subse- trustees, were who quently Colony, for the Old appointed trustees lines on its the latter’s continued to account. some of

On June petitioned district Haven’s creditors trustees to court to direct the passenger trains at numerous sta- stops of Massachusetts, were most which tions The district court line. Colony lines, of them so ordered granted petition and trustees, reversed, tinued as before. trustees, v. Converse we Cir., Massachusetts, 2 Commonwealth however, Subsequently, the Commission Supreme Court 48, and the 101 F.2d and, in first reopened proceedings, *3 “ *** ground that affirmed on the order, supplemental Feb report and dated respect of would violate the traditional 18, petition ruary response to for the and Congress local interests for of Massachusetts of the Commonwealth imply power process administrative interests, and and over various other over judge disregard state law single objection, modified the New Haven’s governance carrier the local of a activities acquisition by provide so as make it for Congress withheld even of reorganized of Old New Haven Commission, ex the Interstate Commerce Colony and, partial payment properties, part complete plan reorgani cept of a therefor, reorganized com by the issuance road.15” Palmer v. an insolvent zation for refunding pany its first and certain of Massachusetts, S.Ct. 60 308 U.S. bonds, preferred and and income bonds opinion Footnote fifteen in 84 L.Ed. 93. Colony common trustees. stock to the Old part, pertinent subdivision f quoted Contending that it had the 244 I.C.C. on went Section The Court then 77.1 power, f under subdivision of Section 77 say “Perhaps true that that: it is no less Massachusetts, supra, and v. Palmer (to amenability state laws serve will authorize, complete plan part of a reorgani an the formulation incentive to road, reorganization for insolvent “a an plans which, approval by zation on * * * complete or matter as the such authority.” Commission, supplant do state passenger serv discontinuance of page 84 page 308 60 S.Ct. at U.S. ice,” rail in addition to abandonment L.Ed. 93. property, de road all its the Commission that, attempting termined while the record did not to formulate a of re organization justify making it an immediate condi it in Division acquisition tion of the the Old 4 of the Interstate Commission Commerce properties “that originally reorganized determined that the justi Colony as a or in financially Old whole “would not discontinued,” acquiring properties group fied in nevertheless plan that, upon assuming a condition of the the burden their should be successor, conducted, or presently request by the New Haven nor could aver Colony successfully operate should estimate the the Old Commission independent yearly yearly savings for the age carrier.” loss and I.C.C. 380- years rejected proposal It if the also or properties operat had not been New Old Colony system, acquire part Haven Haven all of the Old lines ed as a except average year group,” por if the estimate as so-called “Boston average year including ly savings tion of the lines did not exceed the those between Plymouth, ly equal Boston and to the annual Middleboro loss an amount operating charges deficits in which had the income contingent been con siderably larger acquisition than those incurred with bonds issued in respect principal Colony properties, the so-called “Western” “the debt- then “Cape” groups. Accordingly, Ibid. be un the or shall thereafter or successor obligation from the of reor to continue omitted der no ganization provi any group on the Boston ” * ** respect acquisition sion 263-65. I.C.C. “Upon, carry plan, put into effect and out the confirmation and shall debt- any corporation judge corpo or and relative and the orders * * * organized organized any rations the laws of State or to be thereto purpose carrying au- or order out the decision State notwithstanding.” thority contrary authority to, full have connection, grieved by Com- significantly, proposed

In this discontinuance of pur- authorities mission “that the service on noted now concerned are suant and the communities authority contained may plan keenly computations danger that and claim alive to the * * inaccurate; discontinued, part reorganized company or in whole are apply Id. which case the District at 264. Court for the District of Connecticut rejected When the appointment master audit of a validi- the district court as of doubtful computations.” ty protecting the re- effectiveness in Special organized against unreasona- The Attorney and the General pas- *4 ble from Old Railroad resulting losses Commission of Massachusetts operations, again senger petitions then filed the Commission modification problem, light as, things, but in the so to among considered the joint report agreed upon 'by option various of the the have the Commonwealth to parties supplemen- Colony portion purchasing in interest. In its third the Old 1942, order, 6, report group tal Boston extending and dated October Boston from lines salvage thereof 254 the Commission determined value I.C.C. Braintree subsequent depreciated reorganized as well less that amount oapital Colony, improvements agreed by the Old should be relieved of any statutory obligations provide “to that there Commonwealth; or franchise operate Colony passenger service on Old should be of service no discontinuance lines,” company properties’ earnings long Colony but that as the Old obligation pay should contractual “undertake a were sufficient the interest passenger acquisi own account fixed-interest bonds to be issued properties; if Old lines and so tion those and “Permit no on o'f not exceed passenger as the losses therefrom do the more traffic on discontinuance of figures provided below.” properties critical Section the than is needed to Old Reorganization. N(2) (a) figures.” the Plan of reach the critical 254 I.C.C. provide, supplemental then on The went 421-23. re Commission its fourth port order, (a) July in subsection of that Section that: (3). dated Colony’s on “Passenger service lines Commission refused the Commonwealth’s in during requests of the latter two any but accepted, be discontinued corporated N(3) periods passenger losses into (a) below Section described plan, provision giving exceed the the Commonwealth Colony’s lines shall on Old for, option ground sought in effect. The the on figure at the time critical any of Old 12 cal- in the event of discontinuance figure for consecutive critical upon critical months, are within the all of endar reached, figures’ following being consumma- period years Commonwealth of 2 transportation $850,000. might obliged be The be to furnish tion of patrons using cal- accustomed to consecutive critical 24 months, group consequently be which shall after Boston lines endar bargaining $500,- disadvantageous year period, 2 shall be the end of the acquisition position respect to the And, referring segrega- to a with 000.” say did not While them. which the amount of formula under option be exercisable was to whether on lines should passenger loss partially by Haven upon the New election purposes determining computed for service, figures had critical whether altogether, to discontinue election reached, provided in (b) subdivision it was did, insignificantly, note that in this (3) that: “The result of subsection connection, “The also Commonwealth computation shall determine whether approved by our met, points out figure has been un- or not the report not confine supplemental does Department of third Public Utilities of less the operations relief ag- (or successor) Massachusetts report supplemental approved Finally, in its sixth group, as did the 14, 1925, under and order of I.C.C. February May report our 202-04, made it, apparently adhered could be the Commission curtailments part relating 421-22. to Old on all Id. at the Old lines.” fifth Mas- say, modified in That service as is to the Commonwealth curtailment, dis- supplemental report order. recognized sachusetts then approved, partial discontinuance, as total trict and we affirmed. well court York, N. H. discontinuance, service was v. & Bondholders New Sep- permissible Co., Cir., On H. R. F.2d Order tember Consummation District December Court dis- Final Decree was entered approved plan relating date, one trict its effective present- Colony passenger later, Colony property was week modifications, ly unimportant but construed acquired paid option provision only to such apply reorganization’. to Braintree the facilities in the Boston Operation by required by might reasonably foe *5 opera- Colony undertaken for service was Commonwealth tions, provided plan, clear subject right joint as but it became to a use the the of $850,000 any jurisdiction New to that the critical of and reserved 12 reasonably would consecutive calendar months within the determine what facilities York, required. years In New H. & H. first two consummation of re N. the C., Co., Conn., plan 1, F.Supp. 595, R. the D. D. 54 would be reached October Commission, request fifth 1948. the of Gov- 614-617. The in its Pursuant the supplemental order, report and Feb- ernor of Massa- dated of Commonwealth ruary 8, 1944, chusetts, however, reorganized agreed to the court’s modifi- New option pro- not cations construction Haven determined to exercise its elec- of accordingly vision and modified the tion to discontinue the service at least un- 1, plan 1949, approved then til March understanding 257 I.C.C. was on the that entirety by company’s rights plan in its district court. re unimpaired. C., 8, N. February 1949, New H. & remain On H. R. D. D. Conn., however, F.Supp. public 54 it issued a statement 1, commencing on March it would discon- appeal part approved On we of the operation Monday Friday, tinue 45 plan Colony passenger which related to Old only, 41 Saturday only, and Sunday 28 and, citing f subdivision of Section operating trains then on the Old Massachusetts, supra, 77 and Palmer v. said hand- division, leaving in trains that: “Whether the curtailment of serv- public ling train-travelling over 80% required public ice is in the a day area. On last for the matter Commission decide. The order, stop February, appellant issued a general public keeping interest of an in- Haven continue quiring the New running terstate railroad must override the being furnished on the service then public local interest of Massachusetts division, pending investigation by incompatible. Commission thinks the two public hearing. day the and a That same persuasive The contention is temporary Haven obtained restrain- power by means lacks Commission appellant ing against follow- order reorganization plan to amend the char- day, petitioned ing March con- Haven and Old ters of New permanent and for a struction of performing passenger them serv- relieve court injunction. The district construed the state authorities ice unless curtailment so re sent.” In & injunction. granted the Co., Cir., R. 2 147 F.2d Hartford Any construction of a re denied 325 U.S. certiorari S.Ct. rehearing judge the district organization L.Ed. denied 326 who is phase every of it necessar- 66 S.Ct. L.Ed. 490. familiar with U.S. par- ily weight. entirety”: greater discontinued great in its entitled to where, here, judge lesser, ticularly something includes the to the true unless detail, nothing ap- with, appears. does contrary in some previously dealt pear. Indeed, we need very provisions question. But recital the above that, background that mat- shows when ground of this case rest decision scope acquisition fall Commission made ters construction within first discretion, part of which properties no abuse district court provided reorganized majority of has here shown. first A put upon obligation company considers construction under no plainly correct. the court below continue on Old parts (2) lines, N pertinent was “alive Section noted that (a) danger may final form (a) be discon- (3) that service ** tinued, provide as a result respectively part did whole or in —as supplemental re third stated that Commission’s I.C.C. It further port and order —that had the to authorize “undertake ob complete plan a contractual * * * ligation its own account insolvent road “a matter lines if discontinuance power, passenger service,” the losses therefrom do not as well as below,” provided figures exceed the 1(18) Commerce Section of the Interstate “Passenger Act, and that 1(18), service on Col to authorize 49 U.S.C.A. § ony’s if during given discontinued line. Ibid. abandonment of all passen Indeed, periods subsequently described below noted *6 ger Colony’s losses on Old shall ex lines that the Massachusetts Commonwealth of ceed plan “ap- the critical at the time in itself considered that parently effect.” The of Massa Commonwealth be curtailments could made on chusetts startling now makes the rather lines.” I.C.C. provisions Thus, contention that these mean that thought word “discontinued” was must either discontinue all beginning by from the all concerned to Colony passenger or not part” service mean “curtailed” “discontinued in or it, any is, discontinue that entirety.” that words as well “discontinued “may be “may is, discontinued” mean perhaps, great signifi- do not While not of be give meaning curtailed.” To cance, similarly, such a to thought we for in Re New them, however, would be unreasonable. Hartford R. & .reorganized Either company supra, would we referred to “the curtailment of have greater to lines at a allowed loss service” necessary than public the train-travelling Appellant argues that in the area served them would be with rejected partial of a expressly idea dis- any except out service whatsoever as the apparently continuance of but Commonwealth of Massachusetts exercised only argument basis for lies in its re- option purchase, option an which jection proposal Massachusetts^ lines, only not all those covers but that “permit passen- no more discontinuance portion group the Boston lines extend ger Colony properties traffic on the Old ing from Boston to Such Braintree. figures.” than is needed reach the critical manifestly unreasonable construction perceive we not But do how Commis- possible. Here, if be avoided more impose qualification refusal sion’s over, ample weigh against considerations upon right support to discontinue lends it. construction of the that for a would subject right to discontinue make If we refer to the actual words them- qualification that must be dis- selves, “may discontinued,” entirety. in its continued ordinary meaning, them their it would seem plain should be they held to “may mean Nor does the fact Com part” option as well “may given purchase discontinued was an monwealth lating Insofar in the curtailment of service. lines group portion argument premised “shall company that the event enlarging on tention that the district court was elect to discontinue ”* * * merely any plan, than changing rather have Colony’s lines above. appellee construing it, answered was, it has been option bearing. For this rests on argument Com- To extent that the afterthought suggested, be com- provi- option theory that state laws are say, the That mission. is to plied plan, w'e have arriving at a with plan after in the inserted sion was had in In re adversely answered right Haven’s Moreover, Co., supra. Haven & Hartford R. crystallized. been fully sought, and fact that the Commonwealth Finally, appellant argues relating option granted, an the Commission jurisdiction it, was but this without seem group lines the Boston argument is also based on contention interest- indicate, were enlarging, the district court using “Western” ed in the plan, not construing, the and without merit but, anything, that lines, if “Cape” group for the reasons above stated. any likely discontinu- they thought it Order affirmed. all, place, take ance of service would respect segment CLARK, Judge, sep- Circuit dissents largest past shown which had opinion. arate deficits, recognized that operating thus would, could, probably discontinuance CLARK, Judge (dissenting). Circuit partial be a affair. my Had the avail- brothers affirmed Finally, under this construc- the fact that able, narrow, ground appellants’ may be dis- there present any failure on the record to show first obtain- continuance service without justifying appeal, I should have is, regulatory ing approval body quieted my inclined to have doubts For, way course, whichever irrelevant. they accept being. time when construed, there be discon- possible appellee’s fullest extent *7 without such tinuance of interpretation reorganization plan event is such dis- approval and neither in below, accepted go find it Com- as a result of the continuance made plainly beyond possi- correct and otherwise power over abandonments. mission’s bility question, something of I think more considered, Thus, plain my should be said lest this—to mind—de- things all it seems certainty air of properly prove to lusive mis- construed should that, many having leading been interests in figures mean involved passen- reorganization reached, appellee vastly could discontinue affected such a ger holding. division in Such other interests the' Old have service on true, matter; And, the not part. being this been heard whole this at least are, collapse. I appellant’s arguments hardly bring myself until can of rest a history to believe of these is that a district The first purpose of this one can to the rather lead may reorganization proceeding court in a extraordinary conclusion strongly now 'so powers by it un enlarge the reserved not that, appears stated. For now notwith- jurisdiction. is, of der a -reservation standing carefully formulated devices course, law, wholly inapplica sound of years after worked out of effort to remove ble, simply the court was constru here crushing burden of plan, power it had ing do both whole, system from the as a a manage- new above, f and under sub. under Section power has the will to ment at continue and Final Decree. its Order Consummation burden, the benefit of local commuters, truly to the tune stagger- of these is of a second $3,848,484.62 year disregard ing for one lacked the of alone. district court loss concept stranger merely Even is the laws regulatory of Massachusetts of one the judicial reorganization because a say In what I am not I as- of regulated the most industries suming put of becomes forward a final and definitive entirely regulation interpretation at time a free or answer to the public greatest. when the problem; need is attempted this not be un- til interests, particularly doubts, of and be- grave Because these C., I. C. have been from. I heard am all, actually cause, proceeding bound to general sítate that circum- proceed- brought original as a of suggest stances contrary tend a result ings reorganization jurisdic- that set opinions forth in the below and confirming the order reserved it, here. As I see the conclusion which has- correct, legally I think the wholly upon reached rests almost desirable, practically well as course with logical or common-sense deduction that an far-reaohing reference an issue of such “option” to in full importance was to return case to the must necessarily (because greater hearing district of all court for full cludes the less) operation. parties, present including certainly the se- I regard do not fragmentary quotations,, curity particularly holders the Inter- out context, from mainly hearsay re- guardian state Commerce Commission citals past happenings any ma- adding Moreover, the interest. terial support to the conclusion. But we Massachusetts, the Commonwealth go beyond challenge the surface to this bit. established, certainly lies while here logic fireside premise “op- pretty surface, brought close to the to- tion,” the history past present cir- the fore To whenever it chooses. date— cumstances seem to except perhaps general for more claim to point opposite me way. toWhen step, reply appel- in their last their brief— is added the dilemma—not faced far carefully lants have rather avoided I can opinions discover in the here—of suggestion the Commonwealth holding regulated business to be freed option wish to take over the exercise its necessary all regulation by the device Colony system salvage value for reorganization, pretty we have serious- ,One public operation. can course under- grounds for pausing before too ready ac- why stand a state will undertake such ceptance appellee’spresent claim. solution, though signs even indicate necessity, compulsion before the becomes Turning, therefore, to provisions clear. chooses stand its' Until light history, find I however, option, I can see no standing nothing to indicate that anything short appellants appeal, these since abandonment passenger service obligations franchise cancelled all *8 was contemplated ever C., the I. C. the means, too, Colony. This that the dis- Old reorganization court, or the New Haven judge refusing trict was not error Very itself. early in the the recognize their claims to control the im- appointed a Committee Experts road, hastily mediate appraise Colony, the Old which even then- expressed peremptorily at a late mo- recognized was dangerous as a burden for 28, 1949. The February on Common- ment the New Haven ito bear. study After a option, however, wealth’s cannot be nul- noteworthy completeness for impar- -and by any action Haven lified in tiality experts report submitted a from running either or not running Old which, as the historian of the reorganiza- it, too, along trains. Hence should be heard us, only has told one inference could other vital with the interests referred at be drawn: Old could hearing a real full-dress such as the cir- be successfully operated passenger as a line require. cumstances without a serious drain the resources of 'had, is not to hearing Since the New Sunderland, Haven. A Brief His- perforce go on my I must to elaborate tory Reorganization of -the of the New questioning grounds assertedly 'sim- New Haven & Hartford Railroad ple and obvious construction now accorded report Using this aas basis for ger any pos- service so as the losses incurred long whether there was determining might great. be were sibility that not too the Old operated the un- that profitably, and thus Nevertheless, “escape met this clause” expired of its lease to the term opposition quarters. from many Hence said: might value, judge have district compromise committee, organized when the for the contention “Nor is there room to settle the differences between oper- modification or abandonment some Colony, produced ations, any rea- range lying within the report Report, pro- controversial Joint might positive possibility, sonable acquisition vided for of the Old of the term. value the remainder proviso the final al- similar to that of explored through possibility thoroughly was lowing pas- by the property made the studies of the senger if service on losses the Old Experts.” re New In Committee figures. critical exceeded certain The Com- F.Supp. R. Conn. N. H. & H. D. C. in- provision mission’s comments this are 541, 547. noted, moreover, “It structive : is to be proposed coupled are with á conditions appears early At date conclusion proposal service, passenger that retention have been and so losses there- Colony’s freight, pas- well the Old figures. do not In exceed the critical service, unprofitable and senger, would be connection, that while it will be recalled Haven. a burden would be acquisition we found that of Old freight traffic amount Later Colony properties justifiable, assets enough desirable make creased finding upon premise our we based freight least tention of losses freight general for the New Haven’s feeder largely eliminated or reduced.” business. Supplemental Report, Third 254 I.C.C. report formulating first reorganization of the New ob- The Commonwealth Massachusetts problem I. unable to solve C. C. was jected provisions, to these strenuously casting Colony without bringing in the Old proposals modifying one road, heavy the lessee too a burden “permit dis- which it made was more provision made no hence it then continuance of traffic on however, When, took Colony. again Colony properties than is to reach needed later, rej problem up ected figures.” Supplemental Fourth acquisition of earnest contention Report, I. 254 C. C. This was Colony by the Haven should endeavor to have authorize ex- on condition abandon- made actly what the New Haven now claims it said: service. Instead ment of e., attempt, discretionary i. however, record, justify us does “The curtail'passenger service until the losses it an immediate condition making limits, brought are within reasonable rather Colony properties acquisition of the Old than discontinue it. principal debtor under and assets accept proposal. sig- refused to ithis It said passenger ser- reorganization that nificantly: “It is likewise clear that *9 in Colony aas whole or on the Old vice * * modify * materially provision the the be discontinued. group the Boston respect Report in of the Old Joint period, trial in A which the efforts further nullify compromise agree- would tobe 'the improve part of all concerned to negotiations ment reached extended continued, may situation is warranted expectation sug- with little or no Supple- First all the circumstances.” prove gested would acceptable modification Report, 244 I. C. C. mental Id. parties.” to the at interested a so-called Hence inserted “escape intended to through clause” tem- So went to consumma- passen- porary continuance Old more of the tion. There is relevant to majority respect by inquiry quoted than ures’ our is established Plan with opinion. pro- to the N(2) by Reorganized Sec. termination (a) of reorganized Company vides: Old passenger “The charter of the service on the company shall be amend- Lines.” quite and of “termination” A is ed, obliga- statutory and franchises a different from “reduction.” company tions reorganized light provision substituting this a superseded be amended or obligation for contractual franchise for a any obli- so that neither road will be Colony passenger the maintenance of Old gation operate on passenger to service signif- service assumes understandable company lines. The by icance. C. C. approved I. A * * * shall, however, con- a undertake might properly provide for abandonment of obligation operate tractual own happening of a stated on account event; in- factors the crucial lines if losses as the therefrom weighed just terest evaluated have been provided do figures critical exceed the im- proposal on a provides that (3) (a) below.” While NSec. abandonment, final mediate Colony’s “passenger service on Old event, conclusively detrimental during any be discontinued road, opera- tinuance needed for periods passenger losses on described below step. Surely, tion how- of the announced Colony’s lines shall exceed the critical ever, properly can consideration figure time in that sec- at the effect.” And a apply fihe contractual substitution of op- goes give tion Massachusetts an undertaking general in its so broad and buy tion to the Boston-to-Braintree line for terms to permit cease, a railroad value if salvage taper off, continue, expand operations be discontinued. at provision will. Should such appear in provisions fully these are in the even

When read consummated I should light background par- sufficiently stated think still unusual and vulner- express ticularly rejection provi- able validity that its could not be considered conclusively sions now claimed determined. In this connec- obviously tion it is difficult ac- reference should be made to “option” Haven’s even cept present claim view when the Haven’s figures ser- critical loss are A abandonment reached. continuing abandoning choice Even words between vice was not intended. service is much more point to decisive and —under one used limited n than step. authority circumstances —clean-cut The word wide sub- stantially at will here asserted. there “discontinue” is defined Webster’s is, indeed, Dictionary, Ed. this 2d little to indicate even International “ * * * to; contemplated choice meaning put end cease; using; up” only thing give looking About the cause to to cease this direc- provision option, as to —meanings quite than the conno- “curtail,” afterthought serted implicit as an the state’s in- tations word “ * * * 'shorten; sistence, giving right Massachusetts the it defines lessen; diminish; buy salvage line Braintree at reduce.” It ithe value abridge; meaning the event the losses of “discon- exceed the goes on to being or ter- a result “to abandon road tinue” law as “shall elect” service. even more minate discontinuance” —an interpretation might interpretation term. Definite of the critical well direct discussion; light of fuller support from awaiit the clearer interesting An the court bit XI, in Art. s. apprehend is found I view meanwhile does itself for *10 contemplate anything as extensive as a Order and 2(m), final Consummation purely discretionary power in in the officers Decree, jurisdiction of reserved which incurring “To act on the road to continue losses consider and these District Court: Fig- they as The lines of device to respecting the ‘Critical choose. any question

569 ¡had firmly Contemp. Reorganization, & road 7 Law been rid of ithe Old early it that as Prob. is most It a fact appeared; fixed before this tried the as 1939 had the New trustees road only passenger happening event of the stated lines, Group parties and the vitally of Old consent interested long public reorganization judge efforts were re- representative so and the quired off on figure. to induce them to hold this stayed as losses near critical compromise satisfactory to move a again tend while Anything beyond sought. never at 502. certainly Id. nullify It was contemplated passenger fact, As a matter of it- when the losses would be continued calling self regarded has as great half time's as curred were four and a passenger discontinuance service if the specified those critical. as figures were exceeded. This by demonstrated the fact that as late conclusion, my differing In reaching their 9, 1948, February gave it to the Mas- notice circumstance that rely brethren Department of sachusetts Public Utilities during reorgani- occasions fewa intention to abandon has or our court zation the Commission period soon as trial in provided spoken of a service” or “curtailment of elapsed. had present attitude discontinuing passenger 'service “in whole represents very very road a obvious and part.” nor Neither themselves change position. definite in its Of course do these charac- their contexts offhand represents proper far as that exercise a appear to me terizations or references discretion, of managerial it is concern support sought drawn the inference to be point ours. since that is at is- only them. several state- Indeed are sue, its solution a matter of remains present- arguments ments of contentions ithe concern Eng- utmost at least to New True, significance. ed and without further land, nation, proper not to the it seems occasionally the word “curtailment” purpose refer to the avowed of the new used; but must be recalled that management, completion installed since service, picture total of Old reorganization, “ito take control from abandonment of trains the outlanders York Con- “curtailment,” only a freight since trains necticut, good people Mas- are still to run. Thus is that discontinu- Capture an overdue sachusetts break.” ing passenger must travel be authorized 86, April, Fortune I. power, ithe C. the bankruptcy C. under objective, public However laudable this ithe than rather normal over hardly interest will be subserved giving abandonment, since constitutes people of Massachusetts break Moreover, abandonment. no stress may well break the New Haven itself. properly can put on the Commission’s public “The general keeping early proceedings statement in ithe running interstate railroad must override public danger was “alive to the that ser- the local interest of Massachusetts discontinued, vice or in whole if the Commission thinks two incom- part.” 244 I. C. C. For this was patible.” In re New N. & H. H. R. soon after the time that the New Haven Co., Cir., 147 F.2d certiorari denied seeking had been curtailment Commonwealth Mass. v. New N. service, rather than a H. & H. R. U.S. 65 S.Ct. discontinuance, form abortive 89 L.Ed. 1999. attempt to close 88 stations. Commonwealth, towns, balancing various of conflicting com- interests groups just properly muters had be left management finished cannot fighting to prevent any Nor, curtailment and of the New Haven. as Palmer v. Mass., that as danger were as aware of Commonwealth of U.S. taught, were of danger. discontinuance L.Ed. can S.Ct. it be See left Rood, Protecting the User Rail- Interest the discretion *11 .570 Masten,

court. Railroad See Meek I power add as to the re- word I, Reorganization: Leases and Yale served to ambiguities the court to in resolve L.J. 626, 657, 658, is the kind That usual and useful reserva- question special competence hardly go which is ibhe can justify far toas re- Commission, writing a the Interstate Commerce plan; fundamental feature nor body on which heard. properly should be can it appellate exclude yet regulation And here gone.* view. In common my colleagues, with I order, affirmed, has highest District now have the regard Court’s district judge enjoined patient the Massachusetts commission his skilled execution if reorganization. from regulating what difficult there any, appellate all, give. at Haven shall value review approach heard. The District must be in I.C.C. has been the deliberative af- records, briefs, proposed has not rail- argu- Court forded full considered merits, ments, operations has, judge not available to a district road their ferentially least, faced crisis in denied its to do of an afternoon real with a railroading system precipi- great railroad therefore forced him so. This tate and last-minute of this commis- govern- now exercises freedom from -action Moreover, regulation lonely ju- sion. task unique must mental adjudication, finally dicial annals. -each us must modern act as his own faculties demand.' I would argu The New suggested Haven has purposes reverse for the indicated. ment the Boston commuters ' Southeastern Massachusetts should be grateful for the service continues to should,

them. Indeed and that is a proper appel answer to the interests these represent.

lants assume to it is de Buit propo cidedly not an to the broader answer I whioh think we should involved sition find and should reaches face. When loss v. FARMERS CO. INS. CASUALTY OHIO immediately $3,848,484.62 as CLAY, et al. BANK KENTUCKY OF $850,000 against figure of the critical set No. 10852. operation by the a continuance of Appeals Court United States insolvency point only seem to to new Sixth Circuit. proceedings in reorganization. renewed Dec. this late a mere not -at date Whether spell modification can com

plete this dismal reversal of trend is beyond my power to divine. It

course already pointed out transportation in the area —the forms rapid paralleling highways, tran good Boston, underground high speed with sit railways trolleys connecting and street provide net motor bus lines — transportation making railroad work necessity. longer a In re See Conn., F.Supp. H. D. C. & R. N. H. proper Weighing 544 — 547. transportation properly values would seem regulatory task commission. Com management to sub-

plete freedom unduly may, however, local interests serve spell conceivably the doom of quite the en system. tire

Case Details

Case Name: Commission of Department of Public Utilities of Commonwealth, of Massachusetts v. New York, N.H. & H.R. Co
Court Name: Court of Appeals for the Second Circuit
Date Published: Dec 13, 1949
Citation: 178 F.2d 559
Docket Number: 40, Docket 21392
Court Abbreviation: 2d Cir.
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