Robert H. Jackson

“ In this connection it should be noted that if the misfortune which ended in bankruptcy or receivership was not subject to the carrier's 'control', then an interruption of service made by the trustee or receiver cannot be attributed to him. Once the court acquires jurisdiction over the estate, the affairs of the business are in its hands, not the debtor's.
Congress has provided that those who attained a position in the competitive transportation system should be allowed to retain the fruits of their struggle. ”

“ Whatever doubts they have entertained as to the matter, the practical business of government and administration of the law is obliged to proceed on more or less rough and ready judgments based on the assumption that mature and rational persons are in control of their own conduct. ”

“ An applicant carries the burden of establishing his right to the statutory grant which is contained in the 'grandfather' clause. Alton Railroad Co. v. United States, 315 U.S. 15, 62 S.Ct. 432, 86 L.Ed. --. But he should not be met at the threshold with a conclusive presumption against him unless Congress has clearly indicated that in the circumstances of his case he has no right even to undertake the burden of proof. If Congress had desired to eliminate all applicants whose continuous service was interrupted by bankruptcy or receivership, I believe it would have said so. ”

“ Great deference is owed a commission's interpretation of the law which it enforces, especially where the meaning of the statutory language, generally or in specific application, gains body and flavor from the content of the highly specialized field in which the expert body works. ”

“ Certainly that assumption must be made in reference to a corporation such as the applicant. Society, in creating a corporation, vesting its management in a board of directors, granting it large powers and not inconsiderable immunities, can hardly allow that its business affairs are at any time out of the control of those whose duty it is to conduct them. ”

“ As stated by Commissioner Lee in his dissenting opinion (10 M.C.C. p. 263) : 'If such interruptions in service are to be construed as putting an end to 'grandfather' rights of carriers, whose applications therefor have not been determined, then, where such a carrier goes into receivership or bankruptcy, and such an interruption occurs, it would be impossible for the carrier to come out of receivership and resume operations; it could not effect a composition or an arrangement with its creditors and resume operations ”

“ Furthermore, the interruption of service was the deliberate act of those who for the time being stood in the position of applicant and owned its rights. During the interval between receivership and sale of these rights to Northeastern, we take it that the beneficial interest therein vested in the creditors and the legal title in the receiver or trustee. The federal receiver or trustee could have been authorized to conduct the business of the bankrupt for a limited period, if in the best interests of the estate. ”

“ But that is quite different from acceding to the suggestion that the non-technical word 'control' may be interpreted in a way which goes against all human experience and which does violence to its ordinary and accepted meaning. ”

“ On the one hand, the Commission rules that interruptions of service owing to floods, [8] snow, [9] unsafe [10] or impassable [11] roads, highway construction, [12] droughts which destroy a carrier's chief source of business, [13] ill health, [14] strikes, [15] or the illegal action of governmental authorities [16] constitute grounds for holding that an interruption of service is beyond an applicant's 'control'. ”

“ In the fall of 1937 applicant was forced to pay several substantial damage claims arising from accidents during the period when its insurance policy was in effect with Central Mutual. These payments seriously impaired its working capital. Furthermore, applicant was confronted with approximately 175 additional claims for personal injury and property damage. These were estimated at about $200,000 and arose during the period when applicant was insured by Central Mutual. Applicant settled some of these claims. ”

“ A Medieval Concept in Modern Bankruptcy Law, 52 Harvard Law Review 189.↑ The Commission found that Northeastern was incorporated to take over the bankrupt's rights and business, that the former president of Gregg is the new company's general freight agent, and the former superintendent of transportation is a stockholder of the new company ”

“ We are not informed whether such responsibility rested upon the principle of respondeat superior, express contractual assumption, or both. The rest of the claims, upon which about $15,000 were paid, were for cargo loss and damage. ”