Alleghany Corp. v. Breswick & Co., 355 U.S. 415 (1958)

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF NEW YORK

Syllabus

The District Court set aside an order of the Interstate Commerce Commission granting appellant (an investment company) the status of a noncarrier to be "considered as a carrier" under §§ 5(2) and 5(3) of the Interstate Commerce Act and approving an issue of preferred stock. This Court reversed, and remanded the case to the District Court for consideration of appellees’ claim that "the preferred stock issue as approved by the Commission was in violation of the Interstate Commerce Act." The District Court then sustained the stock issue against attacks on its basic fairness, but enjoined the order approving the issue on the ground that the Commission had not approved appellant’s acquisition of control of a subsidiary as a necessary preliminary to approval of the stock issue.

Held: the judgment is reversed, and the case is remanded to the District Court for consideration of the only claim left open by this Court’s prior decision -- i.e., whether "the preferred stock issue as approved by the Commission was in violation of the Interstate Commerce Act." P. 416.

156 F.Supp. 227, reversed and remanded.