York Transport Co. v. Railroad Commission

315 S.W.2d 313, 1958 Tex. App. LEXIS 2147, 1958 WL 95352
CourtCourt of Appeals of Texas
DecidedJune 18, 1958
DocketNo. 10559
StatusPublished
Cited by2 cases

This text of 315 S.W.2d 313 (York Transport Co. v. Railroad Commission) 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
York Transport Co. v. Railroad Commission, 315 S.W.2d 313, 1958 Tex. App. LEXIS 2147, 1958 WL 95352 (Tex. Ct. App. 1958).

Opinion

GRAY, Justice.

By this suit appellants attacked an order of the Railroad Commission and have appealed from a judgment upholding it.

The suit was brought by two specialized motor carriers and nine railroad companies against the Commission. Seventeen specialized motor carriers intervened, aligned themselves with the Commission at the trial and are so aligned here.

[315]*315The order under attack is General Order 35 by which the Commission, on its own motion, after notice and hearing, determined that eighty-five named commodities are “liquid derivatives of hydro-carbons and are petroleum products.” By the recitals in the order it is clear that the Commission purported to act under the authority of Sec. 4 of Art. 911b, Vernon’s Annotated Civil Statutes, vesting the Commission with the power and authority and making it its duty which, whether therein mentioned or not, generally is “to supervise and regulate motor carriers in all matters affecting the relationship between such motor carriers and the shipping public that may be necessary in the interest of the public.” This of course means public interest rather than the individual’s interest.

Admittedly if General Order 35 is sustained then all carriers holding a permit issued by the Commission authorizing such carriers to transport petroleum products may transport any or all of the eighty-five named commodities, subject, of course, to tariffs prescribed and equipment approval.

Appellants here present four points. The first three are to the effect that the order was issued without legal authority and that the trial court erred in upholding General Order 35 because: (1) it was an attempt by the Commission to construe and interpret its own previous final orders; (2) it was an attempt to grant additional transportation authority to specialized motor carriers having authority to transport “petroleum and petroleum products” and violates the motor carrier Act, and (3) the order is retroactive in nature and in effect. We quote point four:

“The District Court erred in refusing to consider or give effect to the long established policy of the Railroad Commission in clearly distinguishing between the two separate commodity classifications ‘petroleum and petroleum products,’ on the one hand, and ‘chemicals and acids,’ on the other hand, and also failing to consider or give effect to the reliance upon and action under the continuing policy of the commission by persons and carriers affected by its orders, the transportation authorized by the statute not being subject to sudden change through capricious definition contrary to the established policy of the Commission and the practice in the industry affected.”

Appellees have filed their motion to dismiss this cause. They say General Order 35 is not appealable and rely on the recent opinion of the Supreme Court in Sun Oil Co. v. Railroad Commission, 311 S.W.2d 235, 237. Although the facts before the Court in the Sun case and the facts here are in some respects similar they are distinctly different. In view of appellant’s contention and our statement we are required to compare the facts and the order before the Court in the Sun case with the facts and the order here.

Briefly the facts in the Sun case show that Sun purchased tubular goods outside of Texas in anticipation of needs for its wells in Texas. Such goods were shipped into Texas where they were unloaded and placed in storage by a specialized motor carrier under contract with Sun. Thereafter, under directions from Sun and at intervals as needed the goods were taken out of storage by the carrier and delivered to the well sites of Sun at charges based on interstate tariffs which were lower than intrastate rates for the same service.

The order of the Commission was to the effect that when the goods moved from storage to the well sites they moved in intrastate commerce and subject to rates prescribed by the Commission.

The court said that the proceeding by the Commission “was one of investigation and declaration of the status of certain traffic” and that the order clearly foreshadowed “future action of the Commission in the event its pronouncements go unheeded by Sun and the other shippers named in the order.” The court said:

[316]*316“ * * * traffic under conditions prevailing at the time of the order and only possibly to prevail thereafter is declared subject to intrastate rates but will have to be the subject matter of additional proceedings before any liability, civil or criminal, on the part of the petitioner, Sun Oil Company, or the other named shippers will accrue. In other words, the latter are in no different position by reason of the order than they were before. Proceeding as they have been, and assuming the view of the Commission to be correct as to the intrastate character of the traffic, they could have been moved against by the Commission even without any preceding declaratory order such as that before us. And assuming they will be proceeded against hereafter, they will be as free to contend the traffic in question to be interstate as if the order were never made. The only difference the order makes is that they now have good reason to believe that they will be proceeded against, if they continue to follow the same shipping system and to pay the interstate rate.”

The order (99) in the Sun case recites that the Commission “took up for consideration the matter of practices certain motor carriers are engaged in, who are subject to the jurisdiction of the” Commission. The order contains a finding that the carriers were hauling tubular goods in violation of tariffs prescribed by the Commission. Clearly the recitals of the order show that the Commission was acting under Sec. 14(a) of Art. 911b supra, giving the Commission “power and authority” to “ * * institute and investigate any matter pertaining to motor carriers upon its own motion.” And perhaps show that the Commission was making an investigation preparatory to the institution of proceedings under Sec. 12(b) for violation of lawful orders, rules, rates or regulations of the Commission. The court recognized this for it said:

“This practice coming to the attention of the Commission, the latter * * issued its General Order 99, which may be said to be part of the order under attack * * * ”.

The order here among other things recites :

“The Commission further finds that the petroleum carriers serve a distinct class of shipper or receiver, namely the petroleum and petroleum refining industry. Such motor carriers should be in a position to solicit the traffic of that industry without being required to determine beforehand whether the commodity is a petroleum product, or because in the refining process it has been subjected to some chemical formula which in the opinion of chemists renders it some commodity other than a petroleum product.”

And as above noted the Commission acting under Sec. 4, supra, determined, from expert testimony, that the eighty-five named commodities are petroleum products.

In the Sun case the court quoted from United States v. Los Angeles & S. L. R. Co., 273 U.S. 299, 47 S.Ct. 413, 71 L.Ed. 651.

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

Related

State v. Bilbo
378 S.W.2d 871 (Court of Appeals of Texas, 1964)
Allied Finance Company v. Butaud
350 S.W.2d 958 (Court of Appeals of Texas, 1961)

Cite This Page — Counsel Stack

Bluebook (online)
315 S.W.2d 313, 1958 Tex. App. LEXIS 2147, 1958 WL 95352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/york-transport-co-v-railroad-commission-texapp-1958.