Texas Steel Co. v. Fort Worth & Denver City Railway Co.

40 S.W.2d 78, 120 Tex. 597, 1931 Tex. LEXIS 197
CourtTexas Supreme Court
DecidedJune 10, 1931
DocketNo. 5695.
StatusPublished
Cited by32 cases

This text of 40 S.W.2d 78 (Texas Steel Co. v. Fort Worth & Denver City 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
Texas Steel Co. v. Fort Worth & Denver City Railway Co., 40 S.W.2d 78, 120 Tex. 597, 1931 Tex. LEXIS 197 (Tex. 1931).

Opinion

Mr. Commissioner CRITZ

delivered the opinion of the court.

This suit was brought by Texas Steel Company, hereinafter designated the Steel Company, against the Fort Worth & Denver City Railway Company and the Missouri, Kansas & Texas Railway Company in the district court of Tarrant county, Texas, for overcharges and penalties. The certificate explains the suit. The pertinent part of the certificate reads as follows:

“Appellant alleges as its cause of action for overcharges and penalties for extortion that the Railroad Commission of Texas, on February 13, 1915, established — after notice and hearing to which appellant was a party — commodity rates for rolling mills, known as Commodity Tariff No. 48-A, and that said rates have never been cancelled in the manner^ provided by law and are still in force and effect; and that the appellees *598 Rave charged it rates grossly in excess of said rates in the shipment of said 112 cars, and it sues for the overcharges and the penalties provided in Art. 6475, Vernon’s Ann. Stas.

“The appellees contend that these rates were lawfully cancelled by the Railroad Commission of Texas on April 26, 1922, by its Circular No. 5548, which rates were subsequently reduced approximately 10 per cent by order of the Railroad Commission of Texas of June 15, 1922, as shown by its Circular No. 5573, and that the rates thus established are the lawful rates.

“The circular of April 26, 1922, recites that:

“ ‘Whereas, it appearing to the Railroad Commission of Texas that in pursuance of orders dated July 7, 1916, * * * entered by the Interstate Commerce Commission in its docket No. 8418, Railroad Commission of Louisiana v. Aransas Harbor Ry. Co. et al., and associated cases, certain freight rates * * * as in said orders prescribed have been on and continuously since Nov. 1, 1916 * * * published and applied to the transportation of freight traffic between points within the State of Texas by railroad companies operating lines of railroad in this state, which said freight rates are carried in the following tariffs,’ etc. (describing various tariffs); and ‘Whereas, it further appearing to this Commission that said freight rates now published in the hereinbefore mentioned tariffs and classifications having been continuously since their publication and being now applied to such intrastate freight traffic and being recognized by this Commission as being so lawfully applied, the shipping interests and public welfare of this ■state require that they be adopted by this Commission.’ The order therefore adopts the rates and is signed by two members of the Commission and attested by the Secretary.

“On May 4, 1922, the Interstate Commerce Commission entered an ■order in said cause No. 8518, stating among other things, that it ‘further appearing that by order entered April 26, 1922, the Railroad Commission of Texas has adopted and prescribed for observance and application ■subsequent to May 15, 1922, between points within the State of Texas the intrastate rates heretofore entered by this Commission * * * (describing them), and it further appearing that said rates * * * will, if said order of this Commission be vacated, continue in effect as the lawfully •established rates * * * it is ordered that said rates be vacated’, etc.

“It áppears from the 31st Annual Report of the Railroad Commission of Texas that these orders were made in pursuance of an agreement or an arrangement between the two said commissions and at the same time an .arrangement was made for joint hearings of future applications involving inter and intra state rates.

“It is urged that there was no docketing of a cause, no notice to the railroads or to appellant, and no evidence introduced, nor any character of Rearing had as a predicate for this Circular.

*599 “The rates adopted by the Railroad Commission of Texas in said Order No. 5548, were filed by A. C. Fonda as publishing agent of the railroads of Texas, with the Interstate Commerce Commission following the Shreveport decision and under the claim that said decision authorized the filing of such rates and the cancellation of corresponding intrastate rates in the State of Texas. The State contended that such rates were not in fact authorized by the Shreveport decision and that the same were without authority and void, and proceedings were pending in the courts to test the validity of said rates when the operation of the railroads was taken over by the Government pending the war, and such proceedings were suspended thereby.

“Federal control over the railroads was terminated by act of Congress on February 29, 1920, but the Interstate Commerce Commission continued to exercise jurisdiction over intrastate rates up to April 26, 1922, when the agreement or arrangement above mentioned was made, in pursuance of which the several law suits involving the validity of the Shreveport rates were dismissed.

“Question 1. Is the said Circular No. 5548 adopting said rates, void and subject to collateral attack for any of the following reasons, to-wit:

“(1) Because no notice was given to the railroads as provided by art. 6449- of the Statutes of 1925, prior to the issuance of said circular?

“(2) Because no notice was given to appellant, which appears to be the only rolling mill in Texas and the only one interested in the exception giving rolling mills preferential rates as provided in said Tariff No. 48-A adopted Feb. 13, 1915?

“(3) Because there appears to have been no evidence of the docketing of the cause, or hearing, or evidence, as provided by the rules of the Railroad Commission of Texas?

“(4) Because the Railroad Commission of Texas was without' authority to make the said arrangement or agreement with the Interstate Commerce Commission ?

“(5) Because the Fonda rates which were adopted were established unlawfully as claimed to have been held by the Court of Civil Appeals in the case of Abilene Southern Ry. Co. v. State, 199 S. W., 878; and the United States Supreme Court in the Minnesota Rate Cases, 230 U. S., 352, 33 S. Ct., 729, 57 L. Ed., 1511, and Wisconsin Ry. Com. v. C. B. & Q. Ry. Co., 257 U. S., 683, 42 S. Ct, 232, 66 L. Ed., 371, and other cases.

“Question 2: If the order of the Railroad Commission of Texas of February. 13, 1915, has not been canceled by the orders mentioned, are the appellees liable for overcharges and the penalties provided by Art. 6475, for not observing the rates established in said order ?

“Appellant sues for the penalties provided by statute for discrimination upon the ground that the fabrication in transit privilege granted to its *600 competitors constitutes an unjust discrimination against it, and that this privilege applies to traffic and points wholly intrasate, and is null and void. The appellees contend that this transit privilege was filed by the Southwestern lines with the Interstate Commerce Commission and that it thereby becomes an interstate regulation and that it is not subject to attack in the state courts.

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

Related

Forty Six Hundred, LLC v. Cadence Education, LLC
15 F.4th 70 (First Circuit, 2021)
Scott Hartman v. State
Court of Appeals of Tennessee, 2003
Harvey Rader v. State of Texas
Court of Appeals of Texas, 1993
Jolly v. State
856 S.W.2d 859 (Court of Appeals of Texas, 1993)
Gutierrez v. Lee
812 S.W.2d 388 (Court of Appeals of Texas, 1991)
Exxon Corp. v. First National Bank of Midland
529 S.W.2d 110 (Court of Appeals of Texas, 1975)
Lone Star Gas Company v. Murchison
353 S.W.2d 870 (Court of Appeals of Texas, 1962)
Rudman v. Railroad Commission of Texas
349 S.W.2d 717 (Texas Supreme Court, 1961)
Railroad Commission v. Rudman
344 S.W.2d 211 (Court of Appeals of Texas, 1961)
Texas & New Orleans Railroad v. Railroad Commission
286 S.W.2d 112 (Texas Supreme Court, 1955)
Texas Employment Commission v. Todd Shipyards Corp.
257 S.W.2d 720 (Court of Appeals of Texas, 1953)
Steele v. General Mills, Inc.
329 U.S. 433 (Supreme Court, 1947)
Corzelius v. Harrell
186 S.W.2d 961 (Texas Supreme Court, 1945)
Burford v. Sun Oil Co.
319 U.S. 315 (Supreme Court, 1943)
Federal Underwriters Exchange v. Pugh
174 S.W.2d 590 (Court of Appeals of Texas, 1943)
Meserole v. Board of Adjustment
172 S.W.2d 528 (Court of Appeals of Texas, 1943)
Washington v. City of Dallas
159 S.W.2d 579 (Court of Appeals of Texas, 1942)
Gulf, C. & S. F. Ry. Co. v. American Sugar Refining Co.
130 S.W.2d 1030 (Court of Appeals of Texas, 1939)

Cite This Page — Counsel Stack

Bluebook (online)
40 S.W.2d 78, 120 Tex. 597, 1931 Tex. LEXIS 197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-steel-co-v-fort-worth-denver-city-railway-co-tex-1931.