Petition for Writ of Certiorari — Pennsylvania v. United States

Supreme Court brief1974

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IN THE

Supreme Court of the Hnited States

vi J- i200

COMMONWEALTH OF PENNSYLVANIA and

PENNSYLVANIA PUBLIC UTILITY COMMISSION,

Petitioners,

v.

UNITED STATES OF AMERICA, et al.,

Respondents.

PETITION FOR A WRIT OF CERTRIORARI TO THE

UNITED STATES COURT OF APPEALS FOR

THE THIRD CIRCUIT

ISRAEL PACKEL,

Attorney General

Capitol Annex

Harrisburg, Pa. 17120

MICHAEL von MOSCHZISKER,

Deputy Attorney General

206 State Office Building

Philadelpha, Pz. 19130

GORDON P. MacDOUGALL

Special Assistant Attorney General

705 Ring Building

Washington, D.C. 20036

EDWARD MUNCE,

Acting Counsel

ALFRED N. LOWENSTEIN,

Assistant Counsel

Pennsylvania Public Utility Commission

118 North Office Building

Harrisburg, Pa 17120

February, 1974 Attorneys for Petitioners

THE CASILLAS PRESS. !NC.-1717 K Street. N. W.—Washington. 0. C.-223-:1220

Cen Peer 8 =e

(i)

INDEX

Page

I ee N6 Gc ca we ee 1

JURISDICTION . 2

QUESTION PRESENTED. 2

SeAruree mewaawee . ww te el 3

ee te ek Ge ee ye a 3

SR 8 SP) Gy ks gt oe we, ee ek 3

Court Proceedings

REASONS FOR GRANTING THE WRIT ...... . 6

The Third Circuit Has Decided an Important

Question of Federal Law Which Should Be

Settled by This Court... . eek Ae eae 6

I. LC.C. Orders Involving a Railroad in

Reorganization Are not Made by Referral

peso eet Gat 8

II. The Reorganization Court Cannot Cut Off

Pennsylvania’s Remedies Under the I.C.C.

ee ee fee 9

Ill. The Decision of the Court of cea Is

Inconsistent with ItsOwn En Banc Ruling . . . . 10

Dr Set Ne ke ee OD

Appendix A:

Opinion of the United States Court of Appeals

For the Third Circuit, Filed September 20, 1973,

as amended November 2,1973 . . . . . ..... 3a

Judgment of the United States Court of Appeals

For the Third Circuit, Dated September 20.1973 . . . . Ta

(ii)

Page

Order of the United States Court of Appeals

For the Third Circuit denying Petition for

Rehearing, dated November 5,1973 . . . - - + =: - 8a

Order of the United States District Court for

the District of New Jersey Denying Application

for Leave To File an Action in the United States

District Court for the Middle District of Penn-

sylvania and Granting Other Relief, dated

ER I Ce gs lglg ew a ack | ae

Appendix B:

Order of the United States Court of Appeals

For the Third Circuit Affirming Judgment of

the United States District Court dated January

ee ty et Ens oe ea Ae eee ee

Letter Opinion of the United States District

Court for the District of New Jersey, dated

Mea WINE 5 ee Se es 12a

Order of the United States District Court for

the District of New Jersey To Consummate

Settlement with the Lehigh Coal & Navigation

Company, dated May 15,1973 . . - - - - © s+ = 15a

Appendix C:

Order of the Interstate Commerce Commission

Denying Petitions for Reconsideration, Finance

Docket Nos. 26659, et al., Service Date September

OS er Ca a hi cies ie AL ee 17a

Order of the Interstate Commerce Commission

Denying Petitions for Reconsideration, Investiga-

tion and Suspension Docket No. 8667, Service

Date, September 11,1972. . . - - 2 ee store 20a

(iii)

28 U.S.C. 1336(aXbXKc)

28 U.S.C. 1398(aX(b)

28 U.S.C. 2325

TABLE OF AUTHORITIES

Cases:

1.C.C. v. Atlantic Coast Line R. Co.,

383 US. 576 (1966)

Callaway v. Benton,

336 U.S.132 .

Central R. Co. of New Jersey - Abandonment,

342 1.C.C. 227

Chicago & N.W. Ry. Co. v. United States,

52 F. Supp. 63 (N.D. Ill. 1943),

Affd 320 U.S. 718 . P

In Re Central Railroad Company of New Jersey,

486 F.2d 1124 go, tag) a

In Re Central Railroad Company of New Jersey,

a ee Roni 2). ME int

In Re Missouri Pac. R. Co.,

93 F. Supp. 852 (E.D. Mo. 1950)

Myers v. Bethlehem Corp.,

303 U.S. 41 (1938) .

New Haven Inclusion Case,

399 U.S. 392 (1970)

10

(iv)

Outland v. C.A.B.,

284 F.2d 224 (D.C. Cir. 1970)

Pennsylvania v. United States,

Civil No. 73-63 (M.D. Pa.) .

Routing via Oak Island Jct., New Jersey,

341 1.C.C. 129

Thompson v. Texas Mexican R. Co.,

328 U.S. 134 .

R. D. Timpany v. State of New Jersey, et al.,

42 U.S.L.W. 3384

United States v. Tucker Truck Lines,

344 U.S. 33 (1952) .

Yonkers v. United States,

320 U.S. 685 (1944)

Statutes and Regulations:

Bankruptcy Act, 11 U.S. C. 205, Section ro ae

49 C.F.R. 1100.101 .

28 U.S.C. 12541)

28 U.S.C. 1336

28 U.S.C. 1398

28 U.S.C. 2101(c)

28 U.S.C. 2325

49 U.S.C. 1(18)-(20)

49 U.S.C. 17(6)

Page

10

IN THE

Supreme Court of the United States

No.

COMMONWEALTH OF PENNSYLVANIA and

PENNSYLVANIA PUBLIC UTILITY COMMISSION,

Petitioners,

V.

UNITED STATES OF AMERICA, et al.,

Respondents.

PETITION FOR A WRIT OF CERTIORARI TO THE

UNITED STATES COURT OF APPEALS FOR

THE THIRD CIRCUIT

The Petitioners, Commonwealth of Pennsylvania and Penn-

sulvania Public Utility Commission, respectfully pray that a

writ of certiorari issue to review two judgments of the United

States Court of Appeals for the Third Circuit, entered in this

proceeding on September 20, 1973 as amended November 2,

1973,! and on January 18, 1974.

OPINIONS BELOW

The first opinion of the U.S. Court of Appeals is reported

as In Re Central Railroad Company of New Jersey, 486

F.2d 1124, and is printed in Appendix A hereto (App., la-

I Rehearing denied November 5, 1973.

2

6a). The unreported order of the reorganization court for

The Central Railroad Company of New Jersey (No. 550) is

printed in Appendix A (App., 9a-1 0a).

The second opinion (judgment order) of the U.S. Court

of Appeals is not reported, and is printed in Appendix B

hereto (App., lla). The unreported order of the same re-

organization court (No. 583), together with the letter-opinion

of the court, are printed in Appendix B (App., 1 2a-16a).

The opinions of the Interstate Commerce Commission

are reported as Central R. Co. of New Jersey - Abandonment,

342 1.C.C. 227. and Routing via Oak Island Jct., New Jer-

sev, 341 L.C.C. 129. The unreported orders denying peti-

tions for rehearing are printed hereto in Appendix C (App.

1 7a-20a).

JURISDICTION

The first judgment of the U.S. Court of Appeals was

entered on September 20 as amended November 2, 1973,

rehearing denied November 5, 1973 (App., 7a-8a). The

second judgment was entered on January 18, 1974 (App.

lla). The jurisdiction of this court is conferred by 28

U.S.C. 1254(1), 2101 (c).

QUESTION PRESENTED

Whether judicial review of line abandonment and tariff

routing orders of the Interstate Commerce Commission, in-

volving a railroad in reorganization, should be instituted in

the reorganization court, or whether such review should

take place in a three-judge district court under the Urgent

Deficiencies Act and venue provisions of the Judicial Code.

3

STATUTES INVOLVED

The statutes principally involved are sections 1336, 1398

and 2325 of the Judicial Code, 28 U.S.C. 1336, 1398 and

2325. They are set forth in Appendix C (App.. 21a-22a).

STATEMENT

This case concerns the proper federal court which should

review orders of the Interstate Commerce Commission where

one or more of the railroads involved in the agency pro-

ceeding is in reorganization.

1.C.C. Proceedings

The Central Railroad Company of New Jersey (CNJ) is

in reorganization.” In May, 1971, it filed various abandon-

ment applications with the Interstate Commerce Commis-

sion (I.C.C.), pursuant to section 1(18)-(20) of the Inter-

state Commerce Act? seeking, as here pertinent, to aban-

don its operation over leased lines in Pennsylvania, which

extend generally from the New Jersey-Pennsylvania boundary

at Phillipsburg to Scranton. The leased lines are known as

the Lehigh & Susquehanna Railroad (L&S). The L&S is

owned by Reading Company (Reading),4 subject to a lease-

hold interest held by Lehigh Coal & Navigation Company

(LC&N).

2 No. B-401-67 (D.N.J.). Section 77 of the Bankruptcy Act, 11

U.S.C. 205.

3 49 U.S.C. 1(18)420).

4 Reading is in reorganization. Bank. No. 71-828 (E.D. Pa.)

4

Lehigh Valley Railroad Company (Lehigh Valley)> and

Reading filed rival applications to extend their operations®

over the L&S lines, subject to prior approval of CNJ’s ap-

plications for abandonment of operation.

Beginning in September, 1971, CNJ and its connecting

railroads filed various tariff schedules naming changes in

routes, so as to substitute interchange points for traffic

moving over the L&S lines. These tariff schedules were

suspended pursuant to section 15(7) of the Interstate Com-

merce Act.’

Commonwealth of Pennsylvania and Pennsylvania Public

Utility Commission, (collectively, ““Pennsylvania’’), vigorous-

ly opposed CNJ’s withdrawal from the Commonwealth, and

also opposed the related tariff changes.

CNJ on April 1, 1972, abruptly ceased operations in

Pennsylvania, while the I.C.C. proceedings were still in

progress. CNJ did this by virtue of an order from its re-

organization court, which was affirmed without opinion by

the Court of Appeals. 455 F.2d 989 (3rd Cir. 1972), cert.

den. 409 U.S. 889.

The I.C.C. on May 26, 1972 (served June 2), issued its

initial decisions in the abandonment-extension case (Finance

Docket No. 26659), and in the tariff routing case (Investi-

gation & Suspension Docket No. 8667). The I.C.C. con-

cluded to grant CNJ’s abandonment application and to grant

Lehigh Valley’s extension application, subject to various

routing conditions. 342 I.C.C. 227 and 341 LC.C. 129.

Pennsylvania, and other parties, petitioned for reconsidera-

5 Lehigh Valley is in reorganization. Bank No. 70-432 (E.D. Pa.)

© The applications were considered under 49 U.S.C. 1(18)}{20).

The Reading application did not include the entire L&S lines.

749 US.C. 15(7).

5

tion.’ These petitions were denied August 23, 1972 (served

September 11).

Court Proceedings

Pennsylvania applied to the CNJ reorganization court for

permission to review the CNJ abandonment orders in the

U.S. District Court for the Middle District of Pennsylvania:

Pennsylvania instituted an action to review the Lehigh Val-

ley and Reading extension orders in the U.S. District Court

for the Middle District of Pennsylvania.?

Pennsylvania was required to seek leave of the CNJ re-

organization court, prior to the institution of judicial review

of the CNJ abandonment and tariff routing orders, by virtue

of an earlier court order which enjoined all persons from

instituting or maintaining actions affecting CNJ’s operations

in Pennsylvania in any court other than the CNJ reorgani-

zation court, or without obtaining permission of that court

to do so.

The CNJ reorganization court denied Pennsylvania’s

petition for leave to sue in the U.S. District Court for the

Middle District of Pennsylvania. No opinion was rendered.

(App., 12a-16a). Pennsylvania appealed that determination.

The Court of Appeals affirmed both decisions. In its

first opinion, the Court of Appeals reasoned that Congress

intended appeals of abandoment orders in railroad reorgan-

ization cases to be reviewed in the context of the reorgani-

zation proceeding and not in a court of coordinate jurisdic-

tion. The court suggested that Pennsylvania should have

appealed from Order No. 514, entered July 5, 1972, which

8 49 U.S.C. 17(6); 49 C.F.R. 1100.101.

9 Civil No. 73-63, Pennsylvania v. United States (M.D. Pa.)

6

authorized CNJ’s trustee to implement the I.C.C. orders of

May 26, 1972, prior to the disposition by the I.C.C. of

petitions for reconsideration on August 23, 1972. The

court said that the reorganization court could have convened

a three judge district court under the Urgent Deficiencies

Act at the hearing on Order No. 514.

The court considered the I.C.C.’s consideration of the

abandonments as being a “referral’’ case governed by 28

U.S.C. 1336(b) and 1398(b). Those sections of the Judicial

Code require that the district court which refers a question

or issue to the I.C.C. for determination shall have exclusive

jurisdiction and venue of any civil action to enjoin any

order of the I.C.C. arising out of such referral. (App., 21a).

The Court of Appeals specifically relied also upon its

earlier decision, 455 F.2d 989, resulting in the abandon-

ment of CNJ’s lines in Pennsylvania.

REASONS FOR GRANTING THE WRIT

THE THIRD CIRCUIT HAS DECIDED AN IMPORTANT

QUESTION OF FEDERAL LAW WHICH SHOULD

BE SETTLED BY THIS COURT.

The decisions below require that public agencies bring a

“civil action” in the railroad reorganization court to review

L.C.C. orders affecting the carrier in reorganization, rather

that in a statutory three-judge court. Here, Pennsylvania

resides and has its principal offices within the jurisdiction

of the U.S. District Court for the Middle District of Penn-

sylvania, and not in the District of New Jersey. Moreover,

a railroad reorganization court is a single-judge court. whereas

judicial review of I.C.C. orders under the Urgent Deficiencies

Act takes place in three-judge district courts which are con-

vened by the Chief Judge of the Circuit. The United States

-

of America is the defendant in such actions. 28 U.S.C.

2321-25.

Heretofore, it has been the settled practice to institute

actions directly in three-judge courts against the United

States to enjoin I.C.C. abandonment and tariff routing

orders. Indeed, the Supreme Court decided this question

in Thompson v. Texas Mexican R. Co., 328 U.S. 134, a

case involving a railroad in reorganization under section 77

of the Bankruptcy Act. The Court stated, 328 U.S. at 151,

fn. 11:

If the (abandonment) order of the Commission

were challenged, its review could of course be

had only in the manner provided by statute.

See El Dorado Oil Works v. United States,

328 U.S. 12.

The exception to the rule that I.C.C. abandoment orders

are reviewed in three-judge courts is where the abandon-

ments are considered by the I.C.C. together and as part of

the plan of reorganization under section 77(e) and 77(f)

of the Bankruptcy Act. Chicago & N.W. Ry. Co. v. United

States, 52 F. Supp. 65 (N.D. Ill. 1943), aff'd 320 U.S. 718:

New Haven Inclusion Case, 399 U.S. 392, 429 (1970): In

Re Missouri Pac. R. Co., 93 F. Supp. 852, 863 (E.D. Mo.

1950). The instant proceedings are not part of the plan

of reorganization. At the request of CNJ, the I.C.C. has

deferred the institution of any hearings on CNJ’s plan of

reorganization, and the I.C.C. specifically declined to con-

solidate the abandonments with any plan of reorganization.

There are a number of railroads undergoing reorganiza-

tion in the Northeastern part of the United States. The

question presented is of considerable importance to the

orderly administration of the judicial system.

8

I. LC.C. Orders Involving a Railroad in

Reorganization Are not Made by Referral

From a District Court.

Congress in 1964 amended sections 1336 and 1398 of

the Judicial Code, 28 U.S.C. 1336, 1398, to provide where

the district court refers a question or issue to the I.C.C.,

the court which referred the question shall have exclusive

jurisdiction and venue of a civil action to enjoin or set

aside any order of the I.C.C. arising out of the referral,

and such action shall be filed within 90 days from the date

the I.C.C. order becomes final. There is nothing in the

legislative history of these amendments to the Judicial Code

to suggest that instructions by a reorganization court that

the trustee file certain applications and tariffs with the

1.C.C. makes any action by the trustee a “referral’’ ques-

tion. See: LCC. v. Atlantic Coast Line R. Co., 383

U.S. 576 (1966).

Indeed, a “‘district court” is not the same as a “‘reorgan-

ization court”, and the concept of a “civil action” being

filed in a “reorganization court” has obvious difficulties.

The I.C.C. decisions authorizing abandonments and

tariff routing changes were rendered exclusively under the

provisions of the Interstate Commerce Act. Judicial review

should take place in the statutory manner provided for

review of I.C.C. orders, i.e., under the Urgent Deficiencies

Act. This court observed in Callaway v. Benton, 336 U.S.

132, 142, that “Congress did not give the bankruptcy

court exclusive jurisdiction over all controversies that in

some way affect the debtor’s estate.”

The decision of the Court of Appeals, in effect, means

that all I.C.C. orders of any type, affecting a railroad in

reorganization, can be made subject to judicial review in

a single judge court, rather than be subject to judicial

review in statutory three-judge courts.

9

Il. The Reorganization Court Cannot Cut

Off Pennsylvania’s Remedies Under the

I.C.C.’s Rules.

The Court of Appeals relies heavily upon Order No. 514

of the reorganization court, entered July 5, 1972, suggest-

ing that Pennsylvania should have taken an appeal from that

court order which authorized CNJ’s trustee to implement

the I.C.C. orders. But the I.C.C. orders of May 26, 1972

were subject to petitions for reconsideration.

There clearly was no basis for an appeal from the July

5 order. There was no change in the status quo — CNJ had

ceased operations in Pennsylvania several months prior thereto.

The authority of the CNJ reorganization court flowed from

the 1.C.C. orders, and those orders were subject to petitions

for reconsideration.

It is premature to progress judicial review of 1.C.C. orders

while petitions for reconsideration are pending. The I.C.C.

orders were not “final” at the time of hearing on Order

No. 514. As Judge (now Chief Justice) Burger noted in

Outland v. C.A.B., 284 F.2d 224 (D.C. Cir. 1970):

“However, while making judicial review avail-

able without a motion for rehearing, that

statute did not operate to repeal the law

with respect to finality. Where a motion

for rehearing is in fact filed there is no fi-

nal order until the rehearing is denied, as

we said in Braniff Airways, Inc. v. Civil

Aeronautics Board, supra.”

Further, Pennsylvania cannot urge upon review of an

1.C.C. order any contentions not previously urged in the

agency proceeding by some party. Thus to require judicial

review prematurely would act to eliminate substantive nights.

United States v. Tucker Truck Lines, 344 U.S. 33, 36-38

(1952): Yonkers v. United States, 320 U.S. 685, 688 (1944).

10

There is a duty of a party to exhaust his administrative

remedies before seeking judicial review of the agency deter-

mination. Myers v. Bethlehem Corp., 303 U.S. 41, 50-51

(1938).

The theory of the Court of Appeals is that review of the

1.C.C. orders should be in the context of the reorganization

proceeding. However, the reorganization procedure con-

flicts with the agency’s procedure regarding petitions for

reconsideration, established by statute as well as regulation.

49 U.S.C. 17(6); 49 C.F.R. 1100.101.

Ill. The Decision of the Court of Appeals

Is Inconsistent with Its Own En Banc

Ruling.

The Court of Appeals placed reliance upon its 1972

decision permitting CNJ to cease operations in Pennsyl-

vania by virtue of the order of the CNJ reorganization

court, and without the necessity of prior approval from

the Interstate Commerce Commission. Yet that decision

was effectively overruled a year later by the en banc deci-

sion in In Re Central Railroad Company of New Jersey,

485 F.2d 208.

This court denied certiorari on January 4, 1974. R. D.

Timpany v. State of New Jersey, et al., 42 U.S. Law Week

3384.

1]

CONCLUSION

For these reasons, the Court should issue a writ of cer-

tiorari to review the judgments of the Third Circuit.

February, 1974

Respectfully submitted,

ISRAEL PACKEL,

Attorney General

Capitol Annex

Harrisburg, Pa. 17120

MICHAEL von MOSCHZISKER,

Deputy Attorney General

206 State Office Building

Philadelphia, Pa. 19130

GORDON P. MacDOUGALL,

Special Assistant Attorney General

705 Ring Building

Washington, D.C. 20036

EDWARD MUNCE,

Acting Counsel

ALFRED N. LWENSTEIN,

Assistant Counsel

Pennsylvania Public Utility Commission

118 North Office Building

Harrisburg, Pa. 17120

Attorneys for Petitioners

la

APPENDIX A

UNITED STATES COURT OF APPEALS

For tHe Tuirp Circuit

No. 73-1110

—_——

In the Matter of

THE CENTRAL RAILROAD COMPANY

OF NEW JERSEY,

Debtor

COMMONWEALTH OF PENNSYLVANIA and

PENNSYLVANIA PUBLIC UTILITY COMMISSION,

Appellants

AppraL From tre Unitrep States District Count FOR THE

Districr oF NEW JERSEY

(D. C. No. B 401-67)

Argued July 20, 1973

Before Vax Dusen and Weis, Circuit Judges.

Reargued September 12, 1973

Before Vax Dusex, Rosen and WEIs, Circuit Judges.

Israel Packel,

Attorney General,

Harrisburg, Pa.

Dante Mattioni,

Deputy Attorney General,

Philadelphia, Pa.

2a

Gordon P. MacDougall,

Special Assistant Attorney General,

Washington, D.C.

Philip P. Kalodner,

Counsel,

Edward Munce,

Assistant Counsel,

Alfred N. Lowenstein,

Assistant Counsel,

Pennsylvania Public Utility Commission,

Harrisburg, Pa.

Counsel for Appellants

Harlington Wood, Jr.,

Assistant Attorney General,

Washington, D.C.

Herbert J. Stern,

United States Attorney,

Newark, New Jersey

Morton Hollander, Esq.,

Irwin Goldbloom, Esq., and

James F. Dausch, Esq,.,

Attorneys,

Department of Justice,

Washington, D.C.

Counsel for United States of

America, Appellee

Stanley Weiss, Esgq.,

Carpenter, Bennett & Morrissey,

Newark, New Jersey,

Counsel for Trustee

Roger C. Ward, Esq,.,

Pitney, Hardin & Kipp,

Newark, New Jersey,

Counsel for Manufacturers

Hanover Trust Company

3a

Charles Danzig, Esq.,

Riker, Danzig, Scherer & Brown,

Newark, New Jersey

Counsel for Lehigh Coal &

Navigation Company

John P. Sheridan, Jr., Esq.,

Trenton, New Jersey,

Counsel for State of New Jersey

OPINION OF THE COURT

(Filed September 20, 1973)

(As amended November 2, 1973)

Per CuriaM:

This appeal challenges the right of a Section 77 re-

organization court to deny the Commonwealth of Penn-

sylvania and its Public Utility Commission leave to file

an action in the United States District Court for the Mid-

dle District of Pennsylvania to review orders of the Inter-

state Commerce Commission, concerning tariff routings and

authorizing the abandonment by the reorganization trustee of

certain lines in Pennsylvania and western New Jersey.!

After the debtor had lost more than 100 million dollars

from 1958-1971, the trustee presented in 1971 a “‘blue-

print for survival’’ to deal with a severe liquidity crisis

which threatened termination of all its operations. An

important part of this ‘‘blueprint’’ involved abandonment

of the debtor’s unprofitable operations in Pennsylvania?

and reduction of the debtor’s operations to six heavily

populated and industrialized north-central New Jersey

counties. On May 7, 1971, and thereafter the trustee, pursuant

to section 77(0) of the Bankruptcy Act (11 U.S.C. § 205(O)),

1. Order No. 550 dated December 20, 1972 (D.N.J. Bankruptcy No

401-67), contained this language, inter alia:

“at 26).0°5 Orveren that the petition for leave to file an action

against the United States of America in the United States District Court

for the Midd!e District of Pennsylvania to judicially review certain orders

of the Interstate Commerce Commission in Finance Docket No. 2063 9 and

in Investigation and Suspension Docket No. 8667 is denied;

2. These operations were to be conducted by the Lehigh Valley Railroad,

which operated parallel lines in Pennsylvania at that time.

4a

sought the approval of the reorganization court for abandon-

ment of vapious portions of lines operator by the debtor, in-

cluding these in Pennsylvania, and these applications eventually

resulted in Orders Nos. 410, 451 and 514 approving abandon-

ments. As a result of the May 7, 1971, and subsequent applica-

tions, the reorganization court authorized the trustee to file

requests for authorizations with the Commission for such

abandonments, which requests were granted on August 20,

1971, and May 26, 1972. On December 20, 1971, the

reorganization court issued Order 445, directing the trus-

tee to suspend all CNJ operations in Pennsylvania by

April 1, 1972, pending the Commission’s final decision on

the abandonment application, and enjoining all parties

from instituting or maintaining in any other court any

action affecting CNJ operations in Pennsylvania, or the

abandonment thereof, without the permission of the re-

organization court. This court affirmed Order 445, In the

Matter of Central Railroad Company of New Jersey,

Debtor, 455 F.2d 989 (3d Cir. 1972). On May 26, 1972, the

ICC granted the debtor permission to abandon all its lines

in Pennsylvania, subject to certain conditions. Central

Railroad Company of New Jersey-Abandonment, 342 1.C.C.

277 (1972). After hearing, the reorganization court,

3. The Commission used this language in its “Conclusions” at 288 and

290-91 :

“The overriding factor with which we are faced, is that since 1967, CNJ

has been debtor in reorganization under the Bankruptcy Act before the

United States District Court for the District of New Jersey. Its position

has continuously deteriorated, as have other railroads serving the New

York metropolitan area. CNJ now may be considered i extremis. During

and since 1970, its losses kave amounted to more than $1 million per

month. Under the circumstances, some form of drastic remedial action

became imperative. The subject application to abandon, and its various

parts, represents CNJ’s election, approved by the Reorganization, to seek

to terminate all operations in Pennsylvania, and to reduce and restructure

its lines and operations in New Jersey. The application is properly filed

under section 1(18)-(20).

“[T]he record as it stands does support our concluding that the fully

distributed net income deficits in Pennsylvania have been sizeable each

year, even prior to payment of the annual lease rental to LC&N for

operation over the lines of L&S. . . . Also, the record establishes, and we

find, that the State of New Jersey for some years has provided various

forms of railroad passenger and freight service subsidies and other financial

aid to CNJ. Obviously, it sought to assure the capability of CNJ to

continue in business as a railroad in New Jersey. On the other hand, the

5a

by order No. 514 dated July 5, 1972, authorized (a) com-

pliance by the trustee with such conditions, and (b) the aban-

donments of the Pennsylvania lines.‘ No appeal was

taken from such order.’ However, by motion returnable

December 11, 1972, appellants sought leave to file the ac-

tion described in the first sentence of this opinion.

We have concluded that the above-quoted language

of order No. 550 (note 1) should be affirmed. On the facts

presented by this record, including the failure of appel-

Jants to appeal from order No. 514 and the affirmance of

order No. 445 by this court (455 F.2d 989, supra) resulting

in the abandonment of the Pennsylvania lines, the reorgan-

ization court had the authority to protect its jurisdiction

by precluding review of the abandonment of the Pennsyl-

vania lines in any other district court. See 28 U.S.C.

§§ 1336(b) and 1398(b) ;* New Haven Inclusion Cases, 399

3. (Continued)

Commonwealth of Pennsylvania has not referred to any present or prospec-

tive program of assistance to railroads in which CNJ has been or would

be able to participate as a recipient.”

Its “ultimate findings” at page 304 included this paragraph:

“Subject to the imposition of traffic protective conditions and employee

protective conditions set forth in detail in the ‘Conclusions’ sections of this

report, we find in Finance Docket No. 26659 and Finance Docket No.

26659 (Sub-Nos. 1, 2, 3, 5, 9, 10, 11, 12, 14, 15, 21, and 28), that the

present and future public convenience and necessity permit abandonment

and abandonment of operation by Central Railroad Company of New

Jersey and by certain subsidiary companies, all designated hereinbefore

and individually identified in title pages of the certificate and order herein,

and in greater detail in appendix A, attached to the report.”

4. It is noted that on timely application to the reorganization court at this

hearing, it could have convened a three-judge court under 28 U.S.C. §§ 2321-25.

? acu Protective Committee v. ICC, 432 F.2d 268, 270-71 (3d Cir.

5. Because of the basis for the affirmance of the relevant part of Order

Io. 550 stated below, it is not necessary to determine whether the failure to

appeal from such order and the decisions of this court on March 10, 1972

(see Matter of the Central Railroad Company of New Jersey, Debtor, supra,

and related cases reported at 455 F.2d 988, 989 and 990) require affrmance of

such part of Order No. 550 under the principle of law of the case and res

judicata. See Antonioli v. Lehigh Coal and Navigation Co., 451 F.2d 1171

(3d Cir. 1971); 1B Moore’s Federal Practice, §0.404(1), pp. 402-03 (2d ed.).

6. Although the parties have not furnished a copy of order No. 410 to

this court in the appendices in this appeal, paragraphs 9 and 10 of the Petition

of LC&N (Docket 2018 in district court) recite at 24a-1 and 25a of the

trustee’s appendix, inter alia:

6a

U.S. 392, 420-422 (1970); In re Penn Central Transporta-

tion Company, 446 F.2d 1109, 1111-1112 (3d Cir. 1971);

Bondholders Protective Committee, supra at 270-71; In re

Huntingdon €& Broad Top Mt. R. R. € Coal Co., 213 F.2d

411, 416-17 (3d Cir. 1954), where Judge Biggs made the

pertinent observation at 417, ‘‘It is time that this chapter

in the history of [the railroad] is brought to a close.”’

That part of order No. 550 quoted in note 1 of this

opinion will be affirmed.

6. (Continued)

“9. On May 25, 1971, by order No. 410, this Court authorized the

Trustee to file applications ith the Interstate Commerce Commission for

permission to abandon certain lines then operated by said Trustee, which

lines included the L&S system located in Pennsylvania. By said order

No. 410, this Court reserved jurisdiction of the subject matter and directed

said Trustee to apply further to this Court for authority to abandon any

lines or operations that may be authorized to be abandoned by the Interstate

Commerce Commission.

“10. On May 26, 1971, the Trustee filed with the Interstate Commerce

Commission, pursuant to order No. 410, a petition for abandonment of the

aforesaid lines... .”

The wording and legislative history of 28 U.S.C. §§ 1336(b) and 1398(b).

as well as of §77(0) of the Bankruptcy Act (11 U.S.C. §205(0)), show that

Congress intended appeals of abandonment orders in railroad reorganization

cases to be reviewed in the context of the reorganization proceeding and not

in a court of coordinate jurisdiction. See Leonard Bros. Trucking Co. 2.

United States, 301 F. Supp. 893, 898 ( S.D. Fla. 1969): House Report 1015,

88th Cong., 2d Sess., to accompany H.R. 7308: see also JCC v. Atlantic Coast

Line R. Co., 383 U.S. 576, 579-80 (1966) ; Keller Industries, Inc. v. United

States, 449 F.2d 163, 166-67 (5th Cir. 1971); Lowiszille and Nashville R. Co.

v. Knox Homes Corp., 343 F.2d 887, 897 n.38 (5th Cir. 1965). When §77(0)

was originally added to the Railroad Reorganization Act in 1935, preliminary

drafts of the bill (H.R. 6249, later H.R. 8587, 74th Cong., Ist Sess.) containing

that section provided, inter alia:

“The conclusion of the judge that any property authorized to be abandoned

or sold hereunder, unless set aside by @ court of competent jurisdiction,

shall raise a conclusive presumption that such abandonment or sale was

justified and that such trustees were not justified in opposing same.”

{Emphasis supplied.]

The above-quoted language was omitted from the bill adopting §77(0) as

finally passed. Sec House Report 1283, 74th Cong., Ist Sess.

A True Copy:

Teste:

Clerk of the United States Court of Appeals

for the Third Circust.

Ta

UNITED STATES COURT OF APPEALS

For the Third Circuit

No. 73-1110

In the Matter of

THE CENTRAL RAILROAD COMPANY OF NEW JERSEY.

Debtor

COMMONWEALTH OF PENNSYLVANIA and

PENNSYLVANIA PUBLIC UTILITY COMMISSION,

Appellants

(D.C. No. B-401-67 In Bankruptcy)

ON APPEAL FROM THE UNITED STATES

DISTRICT COURT

FOR THE DISTRICT OF NEW JERSEY

JUDGMENT

This cause came on to be heard on the record from the

United States District Court for the District of New Jersey

and was argued by counsel, and later reargued.

On consideration whereof, it is now here ordered and

adjudged by this Court that that part of order No. 550 of

the said District Court which is referred to in the opinion

of this Court and quoted in note | of said opinion, filed

December 20, 1972 be and the same is hereby affirmed.

Costs taxed against appellants.

ATTEST:

/s) Thomas F. Quinn

Clerk

September 20, 1973

8a

UNITED STATES COURT OF APPEALS

For the Third Circuit

No. 73-1110

In the Matter of

THE CENTRAL RAILROAD COMPANY OF NEW JERSEY,

Debtor

COMMONWEALTH OF PENNSYLVANIA and

PENNSYLVANIA PUBLIC UTILITY COMMISSION,

Appellants

SUR PETITION FOR REHEARING

Present: SEITZ, Chief Judge, and VAN JUSEN, ALDIS-

ERT, ADAMS, GIBBONS, ROSENN, HUNTER, WEIS and

GARTH, Circuit Judges

The petition for rehearing filed by appellants in the

above entitled case having been submitted to the judges

who participated in the decision of this court and to

all the other available circuit judges of the circuit in

regular active service, and no judge who concurred in the

decision having asked for rehearing, and a majority of the

circuit judges of the circuit in regular active service not

having voted for rehearing by the court in banc, the peti-

tion for rehearing is denied.

By the Court,

/s/ Van Dusen

Judge

Dated: November 5, 1973

9a

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW JERSEY

In the Matter of

THE CENTRAL RAILROAD ) In Proceedings for the

COMPANY OF NEW JERSEY, ) Reorganization of a Railroad

Debtor. ) No. B 401-67

ORDER NO. 550

ORDER DENYING APPLICATION FOR LEAVE TO

FILE AN ACTION IN THE UNITED STATES DIS-

TRICT COURT FOR THE MIDDLE DISTRICT OF

PENNSYLVANIA AND GRANTING OTHER RELIEF.

This matter having been opened to the Court on peti-

tion of the attorneys for the Commonwealth of Pennsyl-

vania and the Pennsylvania Public Utility Commission as

amended orally at the hearing for (a) leave, pursuant to

Order No. 445 of this Court, to file an action against the

United States of America in the United States District

Court for the Middle District of Pennsylvania to judicially

review certain orders of the Interstate Commerce Commis-

sion in its Finance Docket No. 26659 and in its Investiga-

tion and Suspension Docket No. 8667 and (b) for certain

other relief; and the matter having come on for hearing

which was duly noticed; and the Court having considered

the papers filed and arguments made; and all parties in

interest having been heard or having been given the op-

portunity to be heard: and good cause appearing therefor:

IT IS, on this 20th day of December, 1972.

ORDERED that the petition for leave to file an action

against the United States of America in the United States

District Court for the Middle District of Pennsylvania to

10a

judicially review certain orders of the Interstate Commerce

Commission in Finance Docket No. 26659 and in Investi-

gation and Suspension Docket No. 8667 is denied; and

it is

FURTHER ORDERED that petetioner is granted leave

to dismiss its action institited September 24, 1972 in the

United States District Court for the Middle District of

Pennsylvania bearing Docket No. Civil 71-416; and it is

FURTHER ORDERED that, upon petitioner’s request,

the appeal of petitioner from Order No. 467 of this Re-

organization Court is dismissed.

/s/ Anthony T. Augelli

§.J.U.S.D.C.

lla

APPENDIX B

UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

NO. 73-1517

In the Matter of

THE CENTRAL RAILROAD COMPANY OF NEW JERSEY,

Debtor

COMMONWEALTH OF PENNSYLVANIA and

PENNSYLVANIA PUBLIC UTILITY COMMISSION,

Appellants

On Appeal from the United States District

Court for the District of New Jersey

D. C. No. B-401-67 in Bankruptcy

Argued January 9, 1974

Before: ADAMS, HUNTER and WEIS, Circuit Judges

JUDGMENT ORDER

After considering the appellants’ contentions that the

district court erred in refusing to consider appellants’ ap-

peal of an order of the Interstate Commerce Commission

because such order was final and the time for appeal had

expired, it is is

ADJUDGED AND ORDERED that the judgment of the

district court be and is hereby affirmed. See In the Matter

of the Central Railroad Company of New Jersey, No. 73-

1110 (3d Cir. Sept. 20, 1973).

Costs taxed against appellants.

BY THE COURT,

/s/ Arlin M. Adams

DATED: January 18, 1974 Circuit Judge

12a

UNITED STATES DISTRICT COURT

DISTRICT OF NEW JERSEY

Chambers of 305 United States Court House

ANTHONY T. AUGELLI Newark, N. J. 07101

Sr. Judge

April 4, 1973

Charles Danzig, Esq.

Riker, Danzig, Scherer & Brown, Esqs.

744 Broad Street

Newark, New Jersey 07102

Stanley Weiss, Esq.

Carpenter, Bennett & Morriseey, Esqs.

744 Broad Street

Newark, New Jersey 07102

LETTER OPINION

The Central Railroad Company of New Jersey,

Debtor — Docket No. B. 401-67

Re: Application of The Lehigh Coal & Navigation

Company for payment of money under Order No. 441.

Gentlemen:

Reference is made to the transcript of the hearing before

this Court on December 11, 1972, and the exhibits marked

in evidence at said hearing.

At issue is the finality of an order of the Interstate Com-

merce Commission (hereinafter ICC) bearing service date of

June 2, 1972, which authorized the abandonment of the

Debtor’s railroad operation in that State of the Lehigh &

Susquehanna lines (hereinafter L & S system) under a lease

arrangement with the Lehigh Coal & Navigation Company

(hereinafter LC&N).

13a

This issue emerged as a result of a petition filed with the

Court by LC&N, in which it seeks to compel the Trustee

of the Debtor to pay LC&N the sum of $500,000.00, in

cash, as an administration expense, under the terms of a

settlement agreement entered into between the Debtor’s

Trustee and LC&N on November 17, 1971, which agree-

ment was approved by this Court’s Order No. 441. A con-

dition precedent to the Trustee’s obligation to pay LC&N

$500,000.00 was the abandonment of the L & S system

by the Debtor and the finality of the ICC order permiting

abandonment of that operation.

The Trustee is willing to discharge his obligations under

the settlement agreement of November 17, 1971, provided

the ICC order of June 2, 1972, is a final order. The final-

ity of that order was challenged in a joint petition filed by

the Commonwealth of Pennsylvania and the Pennsylvania

Public Utility Commission (hereinafter collectively Pennsyl-

vania). At the hearing of December 11, 1972, Pennsylvania

applied for leave to file a three-judge court action in the

Middle District of Pennsylvania to review the ICC order of

June 2, 1972, which authorized abandonment of the Debt-

or’s Pennsylvania operations. The application was denied

by this Court’s Order No. 550.

The abandonment of the operation of the L & S sys-

stem in Pennsylvania by the Debtor was effected pursuant

to Section 77(0) of the Bankruptcy Act. After hearing,

this Court, by Order No. 514 entered on July 5, 1972,

authorized the abandonments granted by the ICC order of

June 2, 1972. On July 3, 1972, Pennsyvlania filed with

the ICC a petition for reconsideration of the abandonment

orders involving Debtor’s Pennsylvania operations, which

petition was denied in September, 1972. No appeal was

14a

taken from this Court’s Order No. 514, notwithstanding

that any order made by a judge under Section 77(0) “shall

be a final order for purposes of appeal.”

The time to appeal has long since expired and Pennsy|-

vania should not now be heard to complain about the ICC

order of June 2, 1972, or of this Court’s Order No. 514,

entered July 5, 1972, which authorized the abandonment

granted by the ICC of the Debtor’s operation of the L & S

system in Pennsylvania. No application was made to have

this Court stay its hand pending a decision by the ICC on

the petition for reconsideration filed by Pennsylvania. In

any event, and as previously noted, said petition for re-

consideration was denied.

Under the circumstances, this Court finds that the condi-

tions precedent set forth in the settlement agreement of

November 17, 1971, have been fully met: that there is

finality to the ICC orders and the orders of this Court re-

garding the abandonment of the Debtor’s operations in

Pennsylvania; and that the Trustee should make suitable

arrangement s, pursuant to the terms of the agreement, to

pay LC&N the sum of $500,000.00 in full settlement of

all claims arising out of the operation of the L & S sys-

tem in Pennsylvania by the Debtor.

Counsel for the Trustee will please submit an appropriate

order on notice to all parties concerned.

Yours very truly,

/s/ Anthony T. Augelli

15a

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW JERSEY

In the Matter of )

In Proceedings for the

THE CENTRAL RAIL- ) Reorganization of a Railroad

ROAD COMPANY )

OF NEW JERSEY. ) No. B 401-67

Debtor. )

ORDER NO. 583

ORDER TO CONSUMMATE SETTLEMENT WITH

THE LEHIGH COAL & NAVIGATION COMPANY

This matter having been opened to the Court by appli-

cation of The ‘Lehigh Coal & Navigation Company for pay-

ment of monies due under Order No. 441, the matter hav-

ing come on for hearing on December 11, 1972, which

was duly noticed and all parties in interest having been

heard or having been given an opportunity to be heard.

and the Court having considered all papers filed in con-

nection therewith and all arguments of counsel and hav-

ing decided the application by a letter opinion dated April

4, 1973, and good cause appearing therefor,

IT IS, on this 15th day of May, 1973,

ORDERED that:

(1) The Trustee be and is hereby directed to fully con-

summate the settlement embodied in the agreement author-

ized by Order No. 441, including the payment oi $500.000

to The Lehigh Coal & Navigation Company:

(2) Said payment may be made by the Trustee borrow-

ing such funds for a period, which may be less than but

shall not exceed 4 years, from monies held in a special

account pursuant to Order No. 157, upon terms to be

fixed by further order of this Court; and

16a

(3) The Trustee, when paying said $500,000 to The

Lehigh Coal & Navigation Company, is directed to make

suitable arrangements to protect the interests of this estate

in the event the aforesaid direction to consummate the

settlement, including the payment of $500,000 set forth

in Paragraph 1 hereof, is reversed upon any appeal from

this Order.

/s/ Anthony T. Augelli

S.U.S.D.J.

17a

APPENDIX C SERVICE DATE

SEPTEMBER 11, 1972

ORDER

At a General Session of the INTERSTATE COMMERCE COMMISSION, he.d

at its office in Washington, D. C., on the 23rd day of

August, 1972. ;

Finance Docket No. 26659

R. D. TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO.

OF NEW JERSEY -- ABANDONMENT OF OPERATION BETWEEN

PHILLIPSBURG, N. J. AND HUDSON, PA,

Finance Docket No. 26659 (Sub-No. 1)

.R. D. TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO,

OF NEW JERSEY -- ABANDONMENT OP OPERATION

MINSI TRAIL BRANCH IN LEHIGH COUNTY, PA,

Pinance Docket No, 26659 (Sub-No. 2)

R. D, TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO, OF

NEW JERSEY -- ABANDONMENT OF OPERATION NESQUEHONING

VALLEY BRANCH IN CARBON COUNTY, PA,

Pinance Docket No. 26659 (Sub-No. 3)

R, D. TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO, OF

NEW JERSEY -- ABANDONMENT OF OPERATION NANTICOKE

BRANCH IN LUZERNE COUNTY, PA,

Finance Docket No. 26659 (Sub-No. 5)

R, D, TIMPANY, TRUSTEE OF THe CENTRAL RAILROAD CO, OF

NEW JERSEY -- ABANDONMENT OF OPERATION BUTTONWOOD BRANCH

LUZERNE COUNTY, PA.

Finance Docket No. 26659 (Sub-No. 9)

R, D. TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO, OF

NEW JERSEY -- ABANDONMENT SETWEEN MINOOKA

JUNCTION AND SCRANTON, PA,

Pinance Docket No. 26659 (Sub-No, 10)

R, D. TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO, OF -

NEW JERSEY AND THE CENTRAL RAILROAD CO, OF PENNSYLVANIA --

ABANDONMENT OF OPERATION EASTON & WESTERN BRANCH IN

NORTHAMPTON COUNTY, PA.

Finance Docket No, 26659 (Sub-No. 11)

R. D, TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO, OF

NEW JERSEY AND THE ALLINTCWN TERMINAL RAILROAD CCMPANY --

ABANDONMENT OF OPERAT ION ALLENTOWN, PA,

18a

Finance Doccet No. 26659 et al.

Finance Docket No. 26659 (Sub-No. 12)

R. D. TIMPANY, TPUSTEE OF THE CENTRAL RAILROAD CO. OF

NEW JERSEY -- AEALDONMENT OF CFERATION BSTWEEN

HUDSON-UNION JUNCTION AND MLNOOKA JUNCTION, PA.

Finance Decxet No. 26659 (Sub-No. 14)

R. D. TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO, OF

NEW JERSEY -- ABANDONiiENT OF OPIRATION BETWEEN LEHICGHTON

AND PACKERTON, PA., AND BETWEEN HETCHEL AND FRASER, PA.

Pinance Docket No. 26659 (Sub-No. 15)

R. D. TIMPANY, TRUSTEE OF THE COYTRAL RAILROAD CO, OF

NEW JERSEY AND THE LEYIGH Al'D NEW ENGLAND RY. COMPANY <=

ABANDONMENT OF OPERATIONS BETWEEN BETHLEHE AND UHLERS, PA.,

. AND BETWEEN HAUTO AND TAMAQUA, PA.

Pinance Docket No. 26659 (Sub-No. 16)

R. D, TIMPANY, TRUSTEE OF THE CEtTRAL RAILROAD CO, OF

A NEW JERSEY -- ABANDONMENT BETWEEN

“ HAMPTON AND PHILLIPSEURGC, N. J.

Finance Docket No. 26659 (Sub-No. 17)

R. D. TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO. OF

NEW JERSEY -- ABANDONMEIT BETWEEN HIGH BRIDGE AND WHARTON,

S. ge tb

Finance Docket No. 26659 (Subd-No. 18)

R, D. TIMSANY, TRUSTEE OF THE CENTRAL RAILROAD CO. OF

NEW JERSEY -- ABANDONMENT BETWEEN ROYCE AND FLEMINGTON,

> N. J.

Finance Deciet Ne. 26659 (Sub-No. 19)

R, D. TIMPANY, TRUSTEES OF THE CENTRAL PAILROAD co, OF

NEW JERSEY -- ABANDONMENT BETWEEN MATAWAN AND FREEHOLD,

N. J.

Pinance Rocket No. 26659 (Sub-No. 21)

R,. D. TIMPANY, TRUSTEE CF THE CINTRAL RATLROAD CO. OF

NEW JERSEY -- ABANDONMENT BETWEEN KEYPORT AND

ATLANTIC HIGHLANDS, W. J.

Pinance Docket No. 276659 (Sub-No. 23)

R. D. TIMPANY, TRUSTED OF TYE CENTRAL RAILROAD CO, CF

NOW JERSEY -- ABANDONMENT BETWEEN EAST LONG BRANCH AND

BRANCHPORT. N. J.

19a

Finance Dockct No. 26659 (Sub-No. 26)

Rk. D, TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO. OF

NEW JERSEY -- ABANDONMENT BETWEEN RARITAN AND HAMPTON,

, N, J.

Finance Docket No. 26659 (Sub-No. 27)

R. D. TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO, OF

NEW JERSEY AND THE DOVER AND ROCKAWAY RAILROAD --

ABANDONMENT BETWEEN WHARTON AND ROCKAWAY, N, J.

Finance Docket No. 26659 (Sub-No. 28)

R. D, TIMPANY, TRUSTEE OF THE CENTRAL RAILROAD CO, OF

NEW JERSEY AND THE WHARTON AND NORTHERN RAILROAD --

ABANDONMENT BETWEEN MORRIS COUNTY JUNCTION AND

GREEN POND JUNCTION, N, J.

Finance Docket No. 26773

JOHN F, NASH AND ROBERT C. HALDEMAN, TRUSTEES

LEHIGH VALLEY RAILROAD COMPANY -- OPERATION BETWEEN

EASTON AND SCRANTON, PA,

Finance Docket No. 26781

READING COMPANY -- OPERATION BETWEEN ALLENTOWN, PA.,

AND PHILLIPSBURG, N, J.

Upon consideration of the record in the above-entitled proceedings, the report and

certificate and order of the Commission, decided May 26, 1972, and the petitions for

reconsideration filed July 3, 1972, by the Railway Labor Executives’ Association,

and jointly by the Commonwealth of Pennsylvania, the Pennsylvania Public Utility

Commission, and the City of Philadelphia, and those filed July 5, 1972, by the

United Transportation Union and by the Erie Lackawanna Railway Company, the

replies thereto filed July 24, 1972, by R. D. Timpany, Trustee of the property of

the Central Railroad Company of New Jersey, and jointly by the Asbury Graphite

Mills, Inc., Grief Bros., Corporation, Wedco, lnc., and Hunterdon County, N. J.,

of the reply filed July 25, 1972, by the Trustees of the Lehigh Valley Railroad

Company; and of the telegram filed July 20, 1972, by the Trustees of the Lehigh

Valley Railroad Company; and

It appearing, That the petitions for reconsideration set forth no material

facts or arguments in addition to those previously considered in the procecdings; that the

findings in the report and certificate and order of May 26, 1972, re adequately supported

by the record; that the conditions which were necessary for our approval of the

transaction were imposed upon the Central Railroad of New Jersey and the Lehigh

Valley Railroad Company, and not on the Erie Lackawanna as statcd in the said

telegram; that there has becn presented no error of fact or law with respect to the

matters complained of by petitioners; and, that no showing has been made warranting

reconsideration:

It is ordered, That said petitions be, and they are hereby,

denied.

By the Commission.

JOSEPH M, HARRINGTON

Acting Secretary

(SEAL)

20a

SERVICE DATE

SePTaMBER 11, 1972

ORDER

At a General Session of the INTERSTATE COMMERCE COMMISSION, held

at its office in Washington, D. C., on the 23rd day of August, 1972.

INVESTIGATION AND SUSPENSION DOCKET NO. 8667

ROUTING VIA OAK ISLAND JCT,, NEW JERSEY

INVESTIGATION AND SUSPENSION DOCKET NO. 8667 (SUB-NO. 1)

ROUTING VIA LAKE JCT., N. J.

INVESTIGATION AND SUSPENSION DOCKET NO. 8667 (SUB-NO. 2)

ROUTING VIA LAKE JCT., N. J.

INVESTIGATION AND SUSPENSION DOCKET NO. 8667 (SUB-NO. 3)

ROUTING VIA BOUND BROOK JCT,, NEW JERSEY

INVESTIGATION AND SUSPENSION DOCKET NO, 8667 (SUB-NU. 4)

. ROUTING VIA LAKE JCT., N. J.

INVESTIGATION AND SUSPENSION DOCKET NO, 8667 (SUB-NO. 5)

ROUTING VIA LAKE JCT, N, J.

Upoa consideration of the record in the above-entitled proceedings, the

report and order.of the Commission, decided May 26, 1972, and the petitions for

reconsideration filed July 3, 1972, by the Railway Labor Executives’ Association,

and jointly by the Commonwealth of Pennsylvania, the Pennsylvania Public Utility

Commission, and the City of Philadelphia, and those tiled July 5, 1972, by the

United Transportation Union and by the Erie Lackawanna Railway Company, the

replies thereto filed July 24, 1972, by R. D. Timpany, Trustee of the property of

the Central Railroad Compuny ol New Jersey, and jointlv by the Asbury Graphite

Mills, inc., Grief Bros., Corporation, Wedco, iInc., 1nd Hunterdon County, N. J.,

of the reply filed July 25, 1972, by the Trostees of the Lehigh Valley Railroad

Company; and of the telegram filed July 20, 1972, by the Trustees of the Lehigh

Valley Railroad Company; and

It appearing, That the petitions for reconsideration set forth no material

facts or arguments in addition to those previously considered in the proceedings;

that the findings in the report and order of May 26, 1972, are adequately supporicd

by the record; that the conditions which were necessary for our approval of the

transaction were imposed upon the Central Railroad of New Jersey and the Lehigh

Valley Railroad Company, and not on the Eric Lackawanna as stated in the said

telegram; that there has tx cn presented no error of Lact or law with respect to

the maticrs complained of by petitioners; and, that no showing has been made

warranting reconsideration:

It is ordered, That said petitions be, and they are hereby, denied.

By the Commission.

JOSEPH M. HARRINGTON

GEAL) Acting Secretary

2la

Title 28.—Chapter , U. S. Code

Sec. 1336. [As codified June 25, 1948, August 30, 1964.]

[28 U.S.C. § 1336.] Interstate Commerce Commission’s

ORDERS

(a) Except as otherwise provided by Act of Congress,

the district courts shall have jurisdiction of any civil action

to enforce, enjoin, set aside, annual or suspend, in whole

or in part, any order of the Interstate Commerce Commis-

sion.

(b) When a district court or the Court of Claims refers

a question or issue to the Interstate Commerce Commission

for determination, the court which referred the question or

issue shall have exclusive jurisdiction of a civil action to

enforce, enjoin, set aside, annul, or suspend, in whole or

in part, any order of the Interstate Commerce Commission

arising out of such referral.

(c) Any action brought under subsection (b) of this

section shall be filed within 90 days from the date that

the order of the Interstate Commerce Commission becomes

final.

Title 28.—Chapter 87, U. S. Code

Sec. 1398. [As codified June 25, 1948, August 30, 1964.]

[28 U.S.C. § 1398.] Interstate Commerce Commission’s

ORDERS

(a) Except as otherwise provided by law, any civil action

to enforce, suspend or set aside in whole or in part an

order of the Interstate Commerce Commission shall be

brought only in the judicial district wherein is the resi-

dence or principal office of any of the parties bringing

such action.

22a

Sec. 2325. [Codified June 25, 1948.] [28 U.S.C. § 2325.]

INJUNCTION; THREE-JUDGE COURT REQUIRED

An interlocutory or permanent injunction restraining the

enforcement, operation or execution, in whole or in part,

of any order of the Interstate Commerce Commission shall

not be granted unless the application therefor is heard and

determined by a district court of three judges under sec-

tion 2284 of this title.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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