William O. Douglas

“ No loopholes will be created. Central could do neither of those two things without the approval of the Commission, since § 5 (2) (a) requires Commission approval of many intra-system transactions by carriers. That is the force of the holding in New York Central Securities Corp. v. United States, 287 U.S. 12, 53 S.Ct. 45, 77 L.Ed. 138. The loophole that is created comes from granting Alleghany a carrier status. Then Alleghany escapes the far more rigorous supervision which is imposed on it by the Investment Company Act. ”

“ It seems obvious, thereofre-so obvious as to be beyond the realm of dispute or argument-that if one has 'actual' control through 'indirect' means and changes the means whereby he commands that power, he has only retained 'control,' not acquired it within the meaning of § 5 (3) . For one wno has 'control,' as defined, does not acquire it when he merely changes the method or means of its exercise. Yet it is clear that Alleghany did no more than that.
Alleghany has control of the New York Central. ”

“ I see no answer to what Judge Frank and his colleagues concluded on this phase of the case.
That view of § 5 (2) is plainly reflected in the legislative history. This control over noncarriers who acquired control of carriers was introduced in 1933. ”