Texas & New Orleans R. v. Railroad Commission of Texas

220 S.W.2d 273, 1949 Tex. App. LEXIS 1733
CourtCourt of Appeals of Texas
DecidedApril 13, 1949
DocketNo. 9788
StatusPublished
Cited by14 cases

This text of 220 S.W.2d 273 (Texas & New Orleans R. v. Railroad Commission of Texas) 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 & New Orleans R. v. Railroad Commission of Texas, 220 S.W.2d 273, 1949 Tex. App. LEXIS 1733 (Tex. Ct. App. 1949).

Opinion

HUGHES, Justice.

Appellant, Texas and New Orleans Railroad Company, a common carrier by rail, applied to the Texas Railroad Commission on June 9, 1947, for authority to discontinue its passenger train service between Waco and Yoakum, a distance of 171 miles. This service consisted of one train each way daily between the two towns, the trains being Nos. SI and 52.

This application was brought under Art. 6479, Vernon’s Ann.Civ.St., and appellant bases its right of discontinuance solely upon the fact that its passenger trains between Waco and Yoakum had for several years operated at a loss and that the passenger traffic offered and reasonably expected to be offered to these trains would not pay the cost of operation and a reasonable return upon property employed in the rendition of such service.

The Commission denied this application; appeal was taken to the court below and upon a non-jury trial the order of the Commission was sustained.

That portion of Art. 6479, supra, here involved reads:

“It shall be the duty of the Commission to see that upon each railroad in this State carrying passengers for hire there shall be run at least one train each day, Sundays excepted, upon which passengers shall be hauled; provided, however, the Commission may, in its discretion, upon application filed and after notice and hearing, relax such requirement as to any railroad, or part, portion or branch thereof, when, in its opinion, public convenience permits of such relaxation, and shall relax such requirement when it appears upon such hearing that the running of one train each day, Sundays excepted, is not necessary in the rendition of adequate service to the public, or that on any railroad, or part, or portion or branch thereof, passenger service as frequent as one train each day, Sundays excepted, with the passenger traffic offered and reasonably to be expected, does not and will not pay the cost of such service plus a reasonable return upon the property employed i,n the rendition of such service; * *

The trial court found and the Commission does not deny that according to appellant’s books, which are accurately kept in accordance with Interstate Commerce Commission accounting regulations, the passenger service in question has, beginning with 1945, been operated at a loss. These losses are:

“1945 . $12,524.59

“1946 . 13,447.40

“1947 . 25,426.31

“First 8 months of 1948. 20,079.50”

[275]*275It is conceded,- then, that “ * * * the passenger traffic offered * * * will not pay the cost of such service * * ⅜.”

It remains only to be determined whether the passenger traffic offered together with the passenger traffic “reasonably to be expected” will pay the cost of such service plus a reasonable return upon the property employed in the rendition of such service.

On this issue the trial court found that:

“The passenger traffic offered, and that reasonably to be expected, and the revenues therefrom, under the present status of 'Operation, using the present equipment, will not pay the cost of operating the passenger service of trains 51 and 52.”

As to the equipment the court found that the motor car in use was of average type for this kind of servic'e but that the passenger coach in use was of the oldest type operated in Texas, and that while appellant has maintained its equipment it has made no effort to improve the equipment in the last ten years.

Other findings of the trial court are: increased rates have been granted appellant since 1945 on passenger, express and mail service; wages and other operating expenses have increased during such period and on October 16, 1948, a wage increase will became effective; that common carrier motor carrier buses compete with appellant’s trains; and, that in the cities and towns served by appellant’s trains, business, industry and population have increased since 1940, and will . “reasonably continue to increase.”

The conclusion of the trial court was:

“ * * * In view of the undisputed evidence that generally in the cities and towns in’ the territory served by trains 51 and 52 the business, industry and population have increased and developed substantially from 1940 through 1948, both inclusive, and because, except for the changes in schedule found above, plaintiff has not changed the type of train service offered by trains 51 and 52 in the last ten years in an effort to attract additional passenger train business. I find that plaintiff has failed to sustain its-burden of showing that the train service could not reasonably be made to pay in the future.”

Asserting this conclusion to be correct and that the order of the Commission is based upon substantial evidence, appellees maintain the judgment should be affirmed.

The principal witness who testified that in his opinion a change in equipment would result in increased passenger traffic was Mr. Don Teas, Secrétary-Manager of the Yoakum Chamber of Commerce, his language being:

“ * * * if you would put in a coach there with properly upholstered seats, clean, air conditioned, advertise it to the public that you have something to offer them, I think your business would increase, but — it would more than triple.”

This opinion was based on the fact that Mr. Teas, himself, would occasionally ride the train. The last time Mr. Teas rode one of.these trains was twelve years ago. He is not a railroad man and has had no railroad experience.

Mr. T. H, Meeks,'assistant to appellant’s general manager, and who had been employed by it for thirty-six years, testified at great length and in much detail as to the issues before the court and explained why these branch line passenger trains and other comparable branch line trains were showing operating losses, the reason being that they 'were unable to compete with buses and private conveyances, and he gave as his opinion that there was no reasonable prospect that the trains in question could be made to earn their .operating expenses within the forseeable future.

This opinion was based upon these facts: Roads and highways are constantly being improved; bus service is being extended; since the war there is no shortage or rationing of tires and gasoline; bus schedules are more frequent and convenient; private cars travel in all directions and .most people who make short trips travel by private car.

Mr. Meeks testified that interurban rail service between Waco and Dallas, Houston and Galveston, and. between Beaumont and Port Arthur -had been abandoned because of inability to'compete with buses [276]*276and private cars and that train travel for short-haul passengers is “outmoded.” That this is progressively becoming more evident, at least in so far as trains SI and 52 are concerned, is shown by the fact that revenue passengers on these trains have declined as follows: From 43,561 in 1945 to 25,995 in 1947, and to 13,621 for the first eight months of 1948.

Most of the facts upon which Mr. Meeks based his opinion are facts known by everyone as a matter of common knowledge. On short trips, say up to 200 miles, a very small per cent of those who travel use the train. The primary reason for this is good roads, good cars and a schedule of one’s own making.

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Bluebook (online)
220 S.W.2d 273, 1949 Tex. App. LEXIS 1733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-new-orleans-r-v-railroad-commission-of-texas-texapp-1949.