17 containers. (8.5 linear feet of shelf space.) (500 items.)
Collection Number:
Cage
228
Summary:
Hearings and testimony before the
Interstate Commerce Commission regarding the merger between the Atlantic Coast
Line and Seaboard Airline railroads; also briefs before and decisions of United
States District and Supreme Courts; and judicial correspondence and other
papers of E. H. Burgess, representative of the Mercantile Safe Deposit and
Trust Company of Baltimore, a participant in the merger action.
Repository:
Washington State University Libraries
Manuscripts, Archives, and Special
Collections
Funding for encoding this finding
aid was provided through a grant awarded by the National Endowment for the
Humanities.
Historical Note
Mr. Edwin Burgess, a lawyer with wide railroad experience, was chosen
in 1960 to represent the interests of the Mercantile Safe Deposit and Trust
Company of Baltimore in the proposed merger of the Atlantic and the Seaboard.
Mercantile held fiduciary control over nearly 35 per cent of the Atlantic Coast
Line and thus would gain a controlling interest in the newly merged company.
This new railroad would bring together the 5,573 miles of track of the
Atlantic with the 4,146 miles of the Seaboard. Both roads were in strong
financial condition when they appeared before the Interstate Commerce
Commission (ICC) for permission to merge. This merger, they claimed, would save
the new line nearly 38 million dollars over a five year period. In addition,
the merger would hasten the lowering of rates, eliminate duplication of service
in many areas, and generally improve rail service along the whole southeastern
coast of the United States.
The historical importance of this merger was recognized at the time
since mergers between financially strong competitors were generally conceived
as favoring monopolistic trends. Michael Conant in his 1964 study
Railroad Mergers and Abandonmentcommented:
"A significant aspect of this case was the petition
of intervening railroads that as a condition of approval the Commission require
the Seaboard and the Atlantic Coast Line to transfer specific sections of their
lines to intervenors. . . . All these requests for conditions to the merger
were based on the argument that the merged line would divert so much traffic
from the intervenors that their solvency would be endangered. (p. 80)"
The ICC rejected all arguments opposed to the merger since to permit
them to stand would have frustrated the overall objectives of the merger. Thus,
in approving the merger the ICC held that it was of greater import to eliminate
wasteful transport and increase efficiency than to allow a near monopolistic
situation to arise in the area's rail service. However, two of the ICC
examiners did reject the proposed merger on the grounds that it would not help
preserve rail competition in the southeastern United States.
The decision of the ICC favoring merger was rendered on December 2,
1963. The merger, however, was not completed until several years of
intervenor's court appeals were finally ended when the United States Supreme
Court, in a per curiam decision, sustained the merger on May 10, 1967.
Content Description
The records of the Atlantic-Seaboard Merger Case are composed of
published applications for merger, statements, reports, and exhibits of parties
favoring or opposing the merger, over five thousand pages of arguments before
the ICC, and the final report of the examiners. Briefs of intervenors, who
between 1964 and 1967 had appealed the ICC report first to the U.S. District
Court in Jacksonville, Florida, and then to the U.S. Supreme Court, are
included in the records as well as the various court decisions.
The correspondence, though limited, reflects the intimate working
relationship between Edwin H. Burgess, representing the Mercantile Safe Deposit
and Trust Company, with the legal department of the Atlantic and the executives
of the Seaboard.
Use of the Collection
Restrictions on Access :
This collection is open for research use.
Preferred Citation :
[Item Description]. Cage
228, Atlantic-Seaboard
Merger Case Records . Manuscripts, Archives, and Special Collections, Washington State University Libraries, Pullman, WA.
Administrative Information
Acquisition Information :
The records of the Atlantic Coast Line and Seaboard Airline railroad
merger case were donated to the Washington State University Library by Edwin H.
Burgess in 1969.
Detailed Description of the Collection
The following section contains a detailed listing of the materials in
the collection.
Applications of ACL & SAL
railroads to the ICC for Approval of merger; supplemental application of
Mercantile Safe Deposit and Trust Co.; applications of interested parties to
intervene and other relief; ICC orders.
"Suit by Florida East Coast RR,
et al. in U.S. District Court to enjoin and set aside ICC order approving
merger."
19 items.
12 / 48
Briefs of parties opposing
merger.
3 items.
13 / 49-50
Briefs of parties opposing
merger.
11 items.
13 / 51-52
Briefs of parties supporting
merger.
8 items.
14 / 53-54
Oral arguments before U.S.
District Court in Jacksonville, Florida, and its decision annulling ICC order
approving merger, , May 13, 1965
2 items.
14 / 55
Appeal by supporters of merger to
U.S. Supreme Court, briefs of parties, and Supreme Court's decision vacating
district court's adverse decision and remanding case to district court for
reconsideration, , Nov. 22, 1965
15 items.
15 / 56
Proceedings on remand in District
Court for conference between interested parties and the courts, plus briefs in
support of merger.
18 items.
15 / 57-58
Briefs of opponents of merger,
oral argument before District Court and its judgment approving the merger.
, June 8, 1966
16 items.
16 / 59-60
Appeal to the U.S. Supreme Court
by opponents of merger; briefs of parties, and Supreme Court's opinion per
curiam sustaining the merger and Mercantile Safe Deposit & Trust Company's
relation to the newly merged railroad, , May 10, 1967
This collection is indexed under the following headings in the online
catalog. Researchers desiring materials about related topics, persons, or
places should search the catalog using these headings.
Personal Names :
Burgess, Edwin Haines.--Archives
(
creator)
Corporate Names :
Atlantic Coast Line Railroad Company
Mercantile Safe Deposit and Trust Company
Seaboard Air Line Railway
United States. Interstate Commerce Commission
Subject Terms :
Railroads --
Mergers--Law and legislation--United States