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Supreme Court — Part 5
Page 27
27 / 77
2 Texas et al. vs. The United Stafes et al.
laws of Texas, which confine te Texas corporations the right to
“own or maintain any railways’’ within the State, which require
every railroad company chartered by the State to ‘‘keep and main-
tain permanently its general offices within this State at the place
named in its charter’’, and at that place also to maintain the
offices of its principal officers, and which prohibit any railroad
company from changing ‘‘the location of its general offices, ma-
chine shops, or roundhouses, save with the consent and approval
of the Railroad Commission”’ of the State.”
belonging to the Texarkana Company, and to relocate the same, and, from
‘ime to time, to change the same, during the full term of this lease, and shall
save the right to make all euch locations, changes and alterations as in the
judgment of the Southern Company will enable it to operate the demised
premises in the public interest and with the greatest economy and efficiency;
and the Southern Company shall not be obligated or bound to perform any
contractual, statutory or other obligations with reference to such matters
which may now or hereafter rest upon the Texarkana Company; and any
and all such changes may be made, from time to time, by the Southern Com-
pany ag may be approved by the judgment of ita officera or Board of
Directors’.
?These provisions of the Revised Civil Statutes of Texas, 1925, are as
follows:
Art. 6260. ‘‘No corporation, except one chartered under the laws of Texas,
shall be authorized or permitted to construct, build, operate, acquire, own or
majntain any railways within State’’.
Art. 6275, ‘Every railroad company chartered by this State, or owning
or operating any line of railway within this State, shall keep and maintain
permanently its general offices within this State at the place named in its
charter for the location of ita general offices. If no certain place is named
n its charter where its general offices shall be located and maintained, then
aaid railroad company shall keep and maintain its general offices at such place
within this State where it contracta or agrees to locate its general office for a
valuable consideration’’,
Art, 6278, ‘Railroad companies shall keep and maintain at the place
within this State where its general offices are located the office of its preai-
dent, or vice-president, secretary, treasurer, local treasurer, auditor, general
freight agent, traffic manager, general manager, general superintendent, gen-
eral passenger and ticket agent, chief engineer, superintendent of motive power
and machinery, master mechanic, master of transportation, fuel agent, general
elaim agent; and each one of its general offices shall be so kept and main-
tained by whatever name it is known, and the persons who perform the duties
of said general offices, by whatever name known, shall keep and maintain their
offices at the place where said general offices are required to be located and
maintained; and the persons holding said general offices shall reside at the
wee
Texas et al. vs. The United States ef al. 3
The Interstate Commerce Commission was divided in opinion.
Upon a prior hearing, the Commission approved the lease upon the
condition that the paragraph in controversy should be eliminated.
Report and order of December 27, 1932; 189 I. C. C. 253. Follow-
ing the enactment of the Emergency Railroad Transportation Act,
1933 (Act of June 16, 1933, c. 91), the proceeding was reopened
and, after hearing, the Commission modified its order by striking
out the above-mentioned condition, thus approving and authoriz-
ing the lease with its provision, in Section 5, as to offices and shops.
The findings of fact set forth in the Commission’s report are not
contested. The lines which constitute what is called the Kansas
City Southern Railway system (embraeing the portions covered by
the: proposed lease) extend from Kansas City, Missouri, to Port
Arthur, Texas (over 800 miles), The line of the Kansas City
Southern Railway Company, the applicant, extends from Kansas
City, Missouri, to Mena, Arkansas. The line of the Texarkana &
Fort Smith Railway Company is in two segments. The northern
segment extends from Mena in a southerly direction, crosses the
Arkansas-Texas State line, and runs through Texarkana and thence
southeasterly into Arkansas and to the Arkansas-Louisiana State
line. The portions of this segment in Arkansas are operated by
the applicant under a lease previously authorized by the Inter-
state Commerce Commission. 105 I. C. C. 523. The portion of
the northern segment which les in the State of Texas, is approxi-
mately 31 miles in length. The southern segment of the Texarkana
& Fort Smith Railway extends from the Louisiana-Texas State
line at the Sabine River to Port Arthur, Texas, and is approxi-
mately 50 miles in length. Thus, the total main line mileage of
the Texarkana & Fort Smith Railway in Texas is 81 miles; there
are about 18 miles of branch lines. The portion of the railroad
system lying between the Arkansas-Louisiana State line and the
Louisiana-Texas State line, approximately 228 miles, is owned by
the Kansas City, Shreveport & Gulf Railroad Company, a sub-
sidiary of the applicant.
place and keep and maintain their offices at the place where said general
offices are required by law to be kept and maintained. . . .’?
Art. 6286, ‘*No railroad company shall change the location of its general
offices, machine shops or roundhouses, save with the consent and approval of
the Railroad Commission of Texas, and this shall apply also to receivers and
to purchasers of the franchises and properties of railroad companies and to
new corporations formed by such purchasers or their assigus. . . .’?
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