Abilene & So. Ry. Co. v. Terrell

131 S.W.2d 37, 1939 Tex. App. LEXIS 297
CourtCourt of Appeals of Texas
DecidedJune 21, 1939
DocketNo. 8864.
StatusPublished
Cited by8 cases

This text of 131 S.W.2d 37 (Abilene & So. Ry. Co. v. Terrell) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abilene & So. Ry. Co. v. Terrell, 131 S.W.2d 37, 1939 Tex. App. LEXIS 297 (Tex. Ct. App. 1939).

Opinion

McClendon, chief justice.

This proceeding is a direct attack upon an order of the Railroad Commission which extended from January 1, 1938, to March 1, 1938, emergency drought freight rates “on shipments of livestock feed stuffs moving intrastate in Texas to destination points in some thirty Texas counties named in the order,” promulgated under authority of R.C.S., Arts. 6458 and 6459. The plaintiffs are several-Texas rail carriers; the defendants are the Railroad Commission, its members, and (by intervention) the Texas Sheep & Goat Raisers’ Association, Inc., and the Texas & Southwestern Cattle Raisers’ Association, Inc. The relief sought is annulment of the order and ancillary injunctive relief. The appeal is by the plaintiffs from a final judgment denying them any of the sought relief.

The grounds of attack upon the order, urged in thirteen propositions in appellants’ brief, are substantially summarized in the three following contentions:

1. No emergency existed within the meaning of the statutes, because the drought conditions during the time covered by the order had been continuous, with slight. intermission, for a period extending back nearly four years immediately preceding the order.

2. The order was unjust, unreasonable, and discriminatory, in that it created unjust and unreasonable preferences, dis-criminations and rebates among consumers, rail carriers and localities with respect to the same commodities' and services, contrary to the constitution and statutes of the state.

3. The rates established by the order were violative of the State and Federal Constitutions, “in that they and their enforcement deprived and will deprive appellants of their property without due process of law, and deprive them of the equal protection of the laws.”

The following quotation from appellants’ brief gives in brief outline the historical background of the order:

“On June 4, 1934, L. E. Kipp, who was a publishing agent of certain Western Trunk Line Railroads in Chicago, issued an interstate tariff putting in certain emergency drought rates to certain Western territory, effective June 4, 1934, and sent a *39 copy of such tariff to the Railroad Commission of Texas, and in substance requested the Texas Compiission to authorize the same reduced rates on Texas intrastate traffic. These rates were a 50 per cent re-ductioñ of the standard rate on hay and a one-third reduction on grain and grain products and cotton seed cake and meal.
“The Texas Commission; effective June 4, 1934, entered an order making such rates effective on shipments moving to destination points in six Texas counties, but .other counties .were added in rapid succession -by other orders not covered by \ any application from Kipp, or any one else, '.until finally by August 31, 1934, shipments to destination points covering all of 242 opunties in Texas were under the orders of ti^e Commission for the reduced rates. The original order of the Commission provided thát the reduced rates should expire on September 4, 1934, but they were restored by an order entered and effective from September 17, 1934, this order being not made on application of the carriers, but on the Commission’s own initiative. There was no immediate opposition to- the extension of these rates voiced by the carriers, for the reason that on further request of the Agricultural Adjustment Administration in Washington the rates were extended from time to time on interstate traffic moving to certain counties in Texas so that grain or feed stuffs could move from Oklahoma or Kansas, or anywhere in the middle west into the Texas counties named on reduced rates, and' so long as this interstate condition existed in 1935 and 1936, the Texas lines did not voice any opposition to the intrastate rates. Some of the rates were permitted to expire on July 3, 1935; others were continued to June 30, 1936, and some were continued right on through to June, 1937. There was a complete cancellation of all of the interstate emergency drought rates on March 30, 1937, but before that date a great many counties had been dropped from the tariffs establishing the low interstate rates, and a few counties had been dropped from the intrastate rates by order of the Texas Railroad Commission. With the exception of a short interval in 1936, the rates were in effect from June, 1934, to June, 1937, as to some of the counties specified in the various orders. The low rates were not effective after June 30, 1937, until August 30, 1937, the regular tariff rates being the lawful rates during that period. By order of August 30, 1937, the Texas Commission put into effect the same reductions of 50 per cent and 33½ per cent, effective August 30, 1937. In the meantime, and prior to June 30, 1937, the Texas railroads had made certain protests against the continuation of the drought rates. A suit was filed in the court below on September 30, 1937, to enjoin the order of the Commission of August 30,1937, putting into effect the reduced rates, which, according to the order putting them into effect, would have 'expired November 30, 1937. A temporary restraining order was entered in the suit so filed, and later during October,. 1937, a hearing was had on an application for temporary injunction. After the evidence at such hearing was introduced, certain representa- - tives of the railroads and of the defendants and intervenors had a conference as a, .result of which, and solely in the nature -of a compromise of the then pending litigation,an application was filed by the carrier plaintiffs with the Railroad Commission for reduced rates on the'feed stuffs mentioned to certain designated counties, the same to be put into .effect as of October 1, 1937, and to expire Novembef 30, 1937, and in accordance with such application the 'Railroad Commission on October 20, 1937, issued its Freight Circular No. 12079 putting in a 25 per cent reduction in the rates, in accordance with the application of the carriers, to certain named counties.
“All of the orders of the Commission above referred to were made without notice to the carriers, or hearing, except where otherwise stated above. On November 23, 1937, about a week prior to the expiration of the order of the Commission contained in Railroad Commission Circular No. 12079, above referred to, the Texas Commission entered an order, its Railroad' Freight Circular No. 12104, continuing the 25 per cent reduced rates to December 31, 1937, which order was entered without notice or hearing to the carriers, and set for December 6, 1937, a hearing to determine whether the reduced rates should be extended in effect after December 31, 1937. Pursuant to such notice and hearing, the Commission on December 7, 1937, issued its Railroad Freight Circular No. 12116, by which it extended the reduced rates (25 pér cent reduction below standard tariff rates) effective from January 1, 1938, to March 1, 1938, as to thirty counties named in' the order, six of which counties were in the Northern part of the Texas Panhandle, and the remainder in South Texas. . * * * This suit was filed to enjoin the order of *40 the Commission embraced in its Railroad Freight Circular No. 12116, dated December 7, 1937, continuing the reduced rates in effect from January 1, 1938, to March 1, 1938.”
As to the drought conditions prompting the order it was agreed:

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Bluebook (online)
131 S.W.2d 37, 1939 Tex. App. LEXIS 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abilene-so-ry-co-v-terrell-texapp-1939.