Texas & N. O. R. Co. v. W. A. Kelso Building Material Co.

250 S.W.2d 426, 1952 Tex. App. LEXIS 1611
CourtCourt of Appeals of Texas
DecidedJune 12, 1952
Docket12412
StatusPublished
Cited by18 cases

This text of 250 S.W.2d 426 (Texas & N. O. R. Co. v. W. A. Kelso Building Material Co.) 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
Texas & N. O. R. Co. v. W. A. Kelso Building Material Co., 250 S.W.2d 426, 1952 Tex. App. LEXIS 1611 (Tex. Ct. App. 1952).

Opinion

CODY, Justice.

This was a consolidated suit by appellee, a shipper, to recover from appellants, Texas & New Orleans Railroad Company and the Gulf, Colorado & Santa Fe Railway Company, overcharges alleged to have been collected by them respectively on numerous carload shipments of sand, transported from Eagle Lake to Galveston, Texas. Each such shipment was consigned and delivered to appellee at one of its two plants located, for consignment purposes, on the tracks of the Galveston Wharves, a switching or terminal railroad line at Galveston. Each such shipment on which overcharges were claimed was transported over the line of the appellants, from whom such alleged overcharges were claimed, from Eagle Lake to Galveston and there turned over by the appellants respectively to its connecting carrier, the Galveston Wharves, and by the Galveston Wharves delivered to appellee at one of its plants, aforesaid.

The appellants collected on said shipments a mileage rate of 900 per ton of 2,000 pounds for said carload shipments of sand. Said mileage rate of 900 covered (or, as the parlance of the trade has it, absorbed) the switching charges for switching services at Galveston. Appellee, however, contends that the only rate which could have been lawfully collected by appellants was a specific point-to-point commodity rate from the point of origin to the ultimate destination of said shipments, to-wit: to appellee’s ■plants on the Galveston Wharves; that said rate so prescribed for application to such shipments -by the Railroad Commission was 860 per ton of 2,000 pounds for said carload shipments; and that hidden in or covered by the said rate of 860 was the shipping charges prescribed for Galveston Wharves for moving each carload shipment from its connecting carrier to the ultimate destination on Galveston Wharves.

It thus appears that this suit raises a question of the interpretation or construction of tariffs of the Texas Railroad Commission to determine the rate lawfully applicable to said shipments. The case was tried without aid of a jury upon detailed written stipulations of the parties and upon the testimony of two expert railroad rate witnesr-ses, one testifying for appellants, the other testifying for appellee. The court rendered judgment for appellee against appellants for the overcharges so sued for by appellee. The amount of the judgment recovered against appellant, T. & N. O. was $1,916.95, while the amount recovered against appellant, G. C. & S. F. was $676.70. Appellee additionally recovered interest and attorneys’ fees from appellants.

Appellants predicate their appeal upon two points, reading:

“First Point — The judgment of the trial court should be reversed and rendered because Railroad Freight Circular 12455 which is the only tariff of record authorizing a rate less than collected does not apply without addition of switching charges.
“Second Point — On the uncontro-verted and undisputed evidence this court should reverse and render for appellants because the 900 mileage rate *428 with absorption of switching was the only lawful rate that could have been collected.”

Railroad Freight Circular No. 12455, referred to in appellants’ first point, was adopted by the Railroad Commission, as is expressly recited in said order, to enable railroads to meet the competition of barge service on sand produced in the San Jacinto River. The order names various points of origin, none of which need be given except Eagle Lake. So far as here-material, said order reads:

“Order

“Austin, Texas, January 26, 1939

“It is ordered by the Railroad Commission of Texas that Commodity Tariff No. 9-D, heretofore issued by it, be and the same is hereby amended -by adding to Section 6 of Tariff, the following item:

361 Note 2 — Switching charges of lines other than line haul carrier at origin or destination will not be absorbed, but will be in addition to the rate provided herein and paid by shipper or consignee.”

It is contended by appellants that the provisions of Note 2 of Circular 12455 must be construed as expressing the intention on the part of the Railroad Commission that the charges for the switching services rendered by Galveston Wharves over its tracks is not included in the 86‡ rate which the shipper is required to pay the line haul carrier for transportation of a shipment from Eagle Lake to Galveston but that the switching charges of the Galveston Wharves must be paid by the shipper or consignee. If Circular 12455 stood alone, much might be said in support of such construction contended for by appellants. It is well settled that the legislative function of fixing rates for common carriers has been delegated to the Railroad Commission and that its rules and regulations in reference to such rates have the same force and effect as do statutes; and that in construing rules and rate orders which have been adopted by the Commission the courts will apply the same rules of construction as are applied to legislative acts and that when the intent of the Commission as expressed in the rule or order is ascertained, it should control. Texarkana & Ft. S. Ry. Co. v. Houston Gas & Fuel Co., 121 Tex. 594, 51 S.W.2d 284. In the cited case the court pointed out the different manner in which rates were adopted by the Railroad Commission and by the I. C. C., which resulted in the different rules being applied to the construction of interstate rates whereby they were strictly construed against the carrier and the manner by which the State rates were adopted which has resulted, as stated above, in the rules of statutory construction being resorted to to determine the Commission’s intentions as manifested by said rules and rates.

We will later take up statutory construction, as applied to Circular 12455, to determine what the Commission intended by Note 2 subjoined thereto. At this point it is essential to call attention to Circular 3518, which provides, “1. All rates shall, except in cases where they are specifically provided for application between given points, be determined by the mileage rates of routes of railroads between shipping point and destination.” The date of this circular was in 1910'. The necessary effect of Circular 3518 is to make a commodity point-to-point rate the sole lawful rate that can be applied to the shipment of said commodity from the stated point to point. That is to say, the specific rate takes precedence *429 ■over the mileage rate and the mileage rate, which is so superseded, cannot lawfully apply. Appellants’ rate expert admitted that he knew of no tariff authority for applying the lower of two rates produced under a mileage scale versus point-to-point tariff. That being true, the 90$ mileage rate applied by appellants was not a lawful rate to be applied to the shipments in question. The mileage rate of 90$, therefore, was not an alternative rate that could be applied in lieu of the point-to-point rate, no matter how benevolent the motives of the carriers may have been in so applying said rate in lieu of the rate prescribed by Circular 12455.

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

Related

In the Matter of E.D.C., a Juvenile
88 S.W.3d 789 (Court of Appeals of Texas, 2002)
In Re EDC
88 S.W.3d 789 (Court of Appeals of Texas, 2002)
Cadle Co. v. Butler
951 S.W.2d 901 (Court of Appeals of Texas, 1997)
State v. Kaiser
822 S.W.2d 697 (Court of Appeals of Texas, 1992)
In Re Brothers
94 B.R. 82 (N.D. Texas, 1988)
Lenhard v. Butler
745 S.W.2d 101 (Court of Appeals of Texas, 1988)
Ex parte Dick
724 S.W.2d 69 (Court of Criminal Appeals of Texas, 1987)
Opinion No.
Texas Attorney General Reports, 1986
Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1982
Utter v. State
571 S.W.2d 934 (Court of Criminal Appeals of Texas, 1978)
Lloyd A. Fry Roofing Co. v. State
541 S.W.2d 639 (Court of Appeals of Texas, 1976)
Nacogdoches Savings & Loan Ass'n v. Lewis
531 S.W.2d 428 (Court of Appeals of Texas, 1975)
Harris v. LaQuinta-Redbird Joint Venture
522 S.W.2d 232 (Court of Appeals of Texas, 1975)
International Service Insurance Company v. Jackson
335 S.W.2d 420 (Court of Appeals of Texas, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
250 S.W.2d 426, 1952 Tex. App. LEXIS 1611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-n-o-r-co-v-w-a-kelso-building-material-co-texapp-1952.