Law Commons^™

Railroads - Reorganization - Validity Of Conditioning Approval Of A Consolidation By Reference To Proper Treatment Of Employees, Kenneth J. Nordstrom

Michigan Law Review

A railroad made application to the Interstate Commerce Commission to obtain authorization to lease the lines of another railroad. The relevant federal statute provided that the commission should authorize consolidations and leases subject to such terms and conditions as it should find just and reasonable and as would promote the public interest. Accordingly, the commission conditioned approval of the lease by requiring that employees dismissed as a result of the lease be paid monthly allowances for fixed periods, or until securing re-employment; that those not dismissed be protected against any decrease in wages for five years, and reimbursed for expenses …