Seaboard Air Line R. Co. v. United States, 382 U.S. 154 (1965)

Seaboard Air Line Railroad Co. v. United States

No. 425

Decided November 22, 1965 *
382 U.S. 154

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE MIDDLE DISTRICT OF FLORIDA

Syllabus

The Interstate Commerce Commission (ICC), after administrative proceedings, approved a merger between the Atlantic Coast Line Railroad Company and the Seaboard Air Line Railroad Company. Though recognizing that the merger would eliminate competition in parts of Florida, the ICC found that the benefits of the merger outweighed its potential disadvantages. On the ground that the ICC failed to determine whether the merger violated § 7 of the Clayton Act by reference to the relevant product and geographic markets, a three-judge District Court set aside the ICC’s order.

Held: The ICC is authorized to approve a merger notwithstanding what would otherwise be violative of the antitrust laws if it makes adequate findings, after weighing the effects of the curtailment of competition against the advantages of improved service, that the merger would be "consistent with the public interest" under §5(2)(b) of the Interstate Commerce Act, and further the overall transportation policy. McLean Trucking Co. v. United States, 321 U.S. 67; Minneapolis & St. Louis R. Co. v. United States, 361 U.S. 173, followed.

242 F.Supp. 14, vacated and remanded.