Railroad Commission v. Rio Grande & Eagle Pass Railway Co.

230 S.W. 974, 111 Tex. 178, 1921 Tex. LEXIS 82
CourtTexas Supreme Court
DecidedMay 4, 1921
DocketNo. 2811.
StatusPublished
Cited by2 cases

This text of 230 S.W. 974 (Railroad Commission v. Rio Grande & Eagle Pass Railway Co.) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Railroad Commission v. Rio Grande & Eagle Pass Railway Co., 230 S.W. 974, 111 Tex. 178, 1921 Tex. LEXIS 82 (Tex. 1921).

Opinion

Mr. Justice PIERSON

delivered the opinion of the court.

Defendant in error, The Rio Grande & Eaale Pass Railway Company, owns and operates a line of radway from Minera to Laredo, where it connects with the line of the Texas-Mexican Railway Company, running eastward through Pescadito to Corpus Christi. Defendant in error’s line also connects at Laredo with the International & Great Northern Railway Company. Prior to the transactions out of which this suit arose, the Railroad Commission of Texas had established a joint through rate of 80 cents per ton on coal from Minera to Pescadito moving over the lines of defendant in error and the Texas-Mexican Railway Company. The local rates on tne same commodity for the two roads were, for defendant in error, from Minera to Laredo 65 cents per ton, and for the Texas-Mexican Railway Company from Laredo to Pescadito 55 cents per ton. The Texas-Mexican Railway Company was the purchaser of coal at the mines at Minera on defendant in error’s line, and billed and shipped same over defendant in error’s line and its own via Laredo to Pescadito. The two roads had no agreement as to the division of the through rate, and the controversy arose between them as to tbe division thereof. In order to determine the controversy the Texas-Mexican Railway Company submitted the matter of the proper division of said rate to the Railroad Commission of Texas for its decision, and in its application to that body set out eight certain carload shipments of coal which were shipped on through bills of lading from Minera to Pescadito and that afterwards said shipments were distributed by it to certain ponts on its line; and after setting out in detail the facts relating thereto, it concluded its application to the Commission in the following language.

“The Texas-Mexican Railway Company desires a ruling from Tour Honorable Body whether it is entitled to a division of the through rate upon company coal shipped from Minera, Texas, and which coal actually moves to Pescadito, Texas, and we would be pleased to have this ruling cover all shipments of company coal moving from Minera, Texas, to Pescadito, Texas.”

After a hearing by the Commission it entered the following order relating thereto:

“It is now, hereby, ordered by the Railroad Commission of Texas, that the revenue, accruing under the freight rates applicable for the transportation of the shipments in question, the same being carload shipments of soft coal from Minera, Texas, to Pescadito, Texas, shall be divided between the carriers, participating in the haul thereof, in proportion to the local rates of said Companies actually applying to and from the point of int irchange, being Laredo, *182 Texas, through which the shipments actually moved; the local rates to be used as factors, being as follows:
“For the Rio Grande & Eagle Pass Ry. Co. Sixty-five (65) cents per ton.
“For the Texas-Mexican Ry. Co. Fifty-five (55) cents per ton.”

This suit was brought by defendant in error in the District Court of Travis County, before the Honorable George Calhoun, District Judge, for writ of injunction to restrain the enforcement and to declare void the Railroad Commission’s order No. 1427 alleging that said order was unreasonable, unjust and invalid because it authorizes a division pro-rate upon a joint tariff rate to a railroad for hauling its own property over its own line. Defendant in error alleges, “that the Railroad Commission of Texas had no power or authority to make, enter and promulgate said order in hearing No. 1427, dated February 24, 1914, for this: that no railroad in this state is entitled to any dividend pro-rate for hauling its own property over its own line.” Defendant in error further alleged that the said order of the Railroad Commission is unreasonable and unjust to it because the billing by the Texas-Mexican Railway Company of coal to Peseadito was a mere scheme to get a reduced freight rate, and that a large number of cars of coal so billed were in fact not hauled to Peseadito but were stopped at Laredo, and that said railway company had failed and refused to revise the billing of cars so stopped or to advise defendant in error that said cars of coal had been stopped at Laredo and had not been hauled to the billed point of destination, and that said billing was fraudulent.

Plaintiff in error denied that the order was unreasonable or unjust, and alleged that a long time prior to the making thereof the defendant in error had voluntarily transported coal from Minera to Laredo and delivered the same to the International & Great Northern Railway Company under through rates, and had been voluntarily accepting a proportion of such through rates.

On trial in the District Court, judgment was rendered sustaining the order. In construing the order the District Court held that it applies only to shipments of coal that actually moved in transportation from Minera to Peseadito, and only to the particular cars of coal mentioned in the complaint on which said order was made, and to all similar shipments from Minera, on through shipment to Peseadito, made subsequent to the promulgation and notice of said order.

The Court of Civil Appeals in its first opinion sustained the validity of the order and affirmed the trial court’s judgment, but on rehearing held that. the Texas-Mexican Railway Company had no right to participate in the division of a through rate on its own line in the carriage of its own property, and therefore reversed and rendered the judgment of the District Court.

*183 The question here presents itself squarely upon the issue whether or not the Railroad Commission of Texas had the right and authority to issue an order permitting a participation by the Texas-Mexican Railway Company in the division of a through rate on its own line of the transportation of its own property. The other issues raised are only incidental to this one leading proposition.

It is not deemed necessary in this opinion to indulge in a general discussion of the authority and powers of the Railroad Commission of Texas under our Constitution and Statutes. This court has fully amplified that- subject in an elaborate opinion by Chief Justice Brown in the case of Railroad Commission v. Galveston Chamber of Commerce, 105 Texas, 101; 145 S. W., 573. The principle is broadly laid down that unless an order of the Railroad Commission is shown to be clearly unjust and unreasonable it will be sustained, and that the burden of so showing is upon the party attacking it. In this case, aside from the question stated above as to the right of a railroad to participate in a pro-rata dividend for hauling its own property over its own lines, there are no sufficient allegations or facts to justify a finding that said order is unfair or unreasonable. There is no complaint that the 80 cent rate from Minera to Peseadito is not a just and fair rate, and there is no complaint that the division of the rate between those points as made by the said order is not a proper division as applied to commercial shipments. In these respects the rate and its division are not challenged. It is only as applied to a division of rate on “company coal” that complaint is made, on the ground that the company shipper is not entitled to a division on its own coal; that said coal is at home when it reaches the junction point, Laredo.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Texas Motor Coaches, Inc. v. Railroad Commission
41 S.W.2d 1074 (Court of Appeals of Texas, 1931)
Texas-Mexican Ry. Co. v. Rio Grande & E. P. Ry. Co.
231 S.W. 308 (Texas Supreme Court, 1921)

Cite This Page — Counsel Stack

Bluebook (online)
230 S.W. 974, 111 Tex. 178, 1921 Tex. LEXIS 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/railroad-commission-v-rio-grande-eagle-pass-railway-co-tex-1921.