UNITED STATES v. R. J. REYNOLDS TOBACCO COMPANY

Civ. A. No. 1668-70.

325 F.Supp. 656 (1971)

UNITED STATES of America, Plaintiff, v. R. J. REYNOLDS TOBACCO COMPANY, RJI Corporation, Sea-Land Service, Inc., Walter Kidde & Company, Inc., and United States Lines, Inc., Defendants.

United States District Court, D. New Jersey.

April 7, 1971.


Attorney(s) appearing for the Case

Raymond W. Young, U. S. Atty., Chief, Civil Division, Newark, N. J., Donald Flexner, Kenneth A. Sagat, Charles J. Walsh, Dept. of Justice, Antitrust Division, New York City, for plaintiff.

Pitney, Hardin & Kipp, by William D. Hardin, Newark, N. J., Donovan, Leisure, Newton & Irvine, by James R. Withrow, Jr., and Sanford M. Litvack, New York City, for defendants Walter Kidde & Co., Inc. and United States Lines, Inc.

Carpenter, Bennett & Morrissey, by Elmer J. Bennett, Newark, N. J., Davis, Polk & Wardwell, by Lawrence E. Walsh, Thomas P. Griesa, and Ronald V. Bryant, New York City, Ragan & Mason, by William F. Ragan, Washington, D. C., for defendants R. J. Reynolds Tobacco Co., RJI Corp., and Sea-Land Service, Inc.

Edward G. Gruis, Deputy Gen. Counsel, Federal Maritime Commission, Washington, D. C., for intervenor.


OPINION

GARTH, District Judge:

The basic issue before this Court is the statutory authority of the Federal Maritime Commission (FMC) over mergers in the shipping industry. Does Section 15 of the Shipping Act (46 U.S. C. § 814)1 grant the FMC authority over merger agreements in providing that "every agreement * * * controlling, regulating, preventing, or destroying competition...

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