ST. Joe Paper Co. et al. v. Atlantic Coast Line Railroad Co. (347 U.S. 298)
U.S. Supreme Court · decided April 5, 1954 · Supreme Court Database (Spaeth)
- Citation
- 347 U.S. 298 · 74 S. Ct. 574
- Decided
- April 5, 1954
- Term
- October Term 1953
- Vote
- 4–3
- Majority author
- Justice Frankfurter
- Issue area
- Economic Activity
- Disposition
- Reversed and remanded
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
Opinion excerpt
Mr. Justice Frankfurter delivered the opinion of the Court. The sole question for decision in this case is whether the Interstate Commerce Commission has the power under § 77 of the Bankruptcy Act to submit a plan of reorganization to a district court whereby a debtor railroad would be compelled to merge with another railroad having no prior connection with the debtor. Answer to this problem depends on understanding of a long legislative history. First, however, it is necessary to put the problem into its relevant context. In August of 1931, the Florida East Coast Railway was thrown into equity receivership. It operated in this manner until January of 1941, when a committee representing the owners of a substantial portion of the debtor’s principal bond issue filed a petition for reorganization under § 77 of the Bankruptcy Act in the United States District Court for the Southern District of Florida. The petition was approved by the court, and, as provided in the statute, proceedings were initiated before the Interstate Commerce Commission for hearings on a plan of reorganization formulated by the bondholders’ committee. In the course of the next ten years, many proposals have been considered by the Commission. Most of them were rejected for one reason or another, but three have in turn been certified by it to the District Court. None has as yet been confirmed by that court.…
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