Honorable Jams B. EEIlday, Dirsotor
Motor '?renaportatIon Dlvieion
Railroad cgma&3sion or Texas
r;untIn, !rexae
Doer Sir:
OpInIon
Ho. o-3994
Rer Does the Railroad Comalaelon
have authority to put a -oeIl-
lllg on rrdght rates to be
charged by oontraot oar&era?
We have your letter or SeptemSber 17, 1941, to-
gether with the enoloeed memorandumwhich memorandum is as
r0ii0w6 I
“Tim ComIseion’s attention Is 0alled to
the faot that the Attorney GenemY., 1088, ren-
dered an optilon- and the Fiat& Division has
been following and ir I’ollorlag that opinion--
to the effeot that oontnot aarrlers mray aharga
as high rate6 a8 they want to aharge and that
the only authorit of thie O~iasion, aoting
through its Rate isIvlslon, Is to fix a rigure
below whIoh they oan not go In makingoharges.
“1 have some doubt In ry mind ae to whether
or not this oplnlon Is oorreot: and, whether or
not It be oorreot or ineomeot, I should 6ay
that It Is against the pub110 Intereat.
“&t le true that we very raeldosl have a com-
plaint abouf a Gontraot oarrier going too high
with his rates. On the eontrary, agoh oomplaints
aa we reaeiva about thea am made by oommon oar-
rier truok and rail lines and are always to the
erreat that they ere not charging enough.
“inhat I am trying t;o say in thlo memorandum
Is that the Attorney General and our Rate DlvI-
sion are In aaaord on the propositian that a
oontraatoarrlar oan go es highaa he wants to- ,
in making ohargos and that the only authorltr
Of thin CIOIdSdOn is to m&O mra that the7 * 1
rtay high aad that fhl.8C~malsslon bar no NL-
thorltyto put a oalling on their rater.
wi%a foregoing
ir indloatad bf the attaoh-
ed letter fromHr. lxo&~~ae,dated saptamber 4,
1941, eddramad to Ur. 0. ,Ii. Gold, ,Trafflo I!R~-
ymf,tha Atlar Powder Gonpysny of Wilmington,
.
*I believe that the Attorney Generalshod
be raqua8t@d to roaxamine hlr predeoaeaorlr opin-
ion with a view of trylng to do eomathiag for
the Paopls in thl8 aattor of ratea.*
.
Under t&680 faOt8 youhate eubmittodto ua the
r0u0ring tpmi0~
Doer the Railroad CormPLeslonhata authority
to put e oalllng on freight ratom to bo oh+rged
bt oontraot oarrirrs? .,.
saotion &a of ml010 Ollb, Ravlaa4 CWlf: #Stat-
at.8, ProvideaI
Vba Coml~slaa ir hereby vaated with power
and authority and it la hereby medo Ite duty to
prelrorlbarules and reiWatlons oovarlng tha
’ oparatlon of contract oarrlcrein oclnpatltIon (’ . ; ~.j.
with oommon oarrlars ovar tha highways of this
&ate and the Commleeion ehall praeorlbe mlai-
mum ratae, faras and ohar&as to be oollaotad br
auah oontraot oarrlaro whloh ahall not be lanr
*. than tha raterrprasorlbad for oommon oarriarr
for rubatentlallythe came aervIoa..W
Under tha above quoted provision of tha llotor
Carriers Aot it aan be readily aaan that it irrmade manda-
tory upon the OommissIon to rat tha mlulmum rata8 of eon-
treat oarrlara oparatlng upon th,ahighways of.Tax&s, whloh
rater shall not be lasr than the rate pramorlbad for eom-
non awrier ror eubstantlally8he mma lrvloa. (TI Q PI
.xp 00, yd Railroad 0ondul6~~ a38 8. 1. Irma)oB9) uAaO?
.i.*
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Pego
HonorableJamorI. Xilday,DlSeotor, a
the prori8lons of thle 'rtatutestanding alone tha Commlr-
aion would-hnva no euthorlty to plaoe a oalliw oa rate8
to be ohargod by oontraot oarrlsrr but ir oonflned to the
power therein given to regulate ths alnimunratorto br
ohargadby muoh oerrlar.
Upon a furthor extuslnetlonof the Aot In It8 on-
tlretr we find that Seotloa 4-a of Artiole Ollb, Revirrd
OIvil Btatuter, provider 88 follower
*The Commission Is hereby vested with pawer
and authority and it 18 hereby made lta duty to
supervise and regulate the tranaportatlonof I~ i
properOt for componeetlonor hire by motor Tab :.‘~“”
hlola on any publio highway in this State, to
rlx, presoribe or approve the maximum or mini- ..?
mum or maximum and mininun rates, rare6 and /
ohar&ea of aaoh..inotoraarrler in aooordanos wit& >'.'
the opeoiflo provisions herein oontaiued, to I .’” .’
prasorlbe all rulas and ragulatloae neoaeaary ‘~ I’ !
for tha government of motor oarrlara,,to pro- : ,,”
sorlbe rules and re3ulatlonafor the eafetq cf ,, i’
operations of aooh of euoh motor carrlere, to .. : ’
require the flllne;of such monthly, annual and ‘:”‘.
othar reports and other data of motor carriers ’ . .
a8 the CozmIusLonmay deam .neoessary,to pre- ‘. ,
’ aorlba the aoLedule8 end earvloee of motor oar-.
rlare, operating as oomuon oarrlars, and to
aupervlae and replete motor cerrlars.ln all
matter6 affeotiag the relationship baiiweaneuoh
oarriera end the ehlpplng publio whether hara-
. .
in spaoifloal~ymantlonod or not." (Underaoor-
lng ours)
We rurthbr find that in Seotloa l-8 of Artlola.
' Sllb tha termmotor oerrler is defined aa followr:
*The term *motor aarrlor’ maana any par-
son, firm, oorporatlon, oampanp, co-partherahip,
aasooiation or joint etook aesooiation, and tkelr
lessae6, reoelrere or trustee8 ap?olnted bp any
Court what0oavar, owning, aontrolllng,managing,
operatlw or onusing to be operated any motor
propelled vahlole used in transporting property ..
for compensationor hire over MY pub110 highway
in thou State, whrre In the ooume of amoh tranrr-
portation A highway brtnwn two or more inOOmOr- .
Eanoreblo fomo~)P. gildey, Dlmotor, Pam 4
atedoltler, ‘town8or villages 10 traverredl pro-
vided that the tern ‘motor oarrler’ as usedin
thl8 Aot #hell not Include, end this kot &tell
not apply to motor vshiolas operatedexolusirrly
within the lnoorporatedlielto of cities or tounr.~
.’
719further find that the tern oontraot oarrier i
aa wood in the Aot 1s defined in Seotlon l-h as.tollow81
The term t&ieot oerrisrt mean8 any
. motor oarrler aa herelnubove dofined tremporO-
1~4~property ior oomponeatioa or hiro over any
highway in thle Stata othor then er e ooaunon
\
I
oerrler.m
It will be noted that In Seotlon &a of Artlolo,
'., Ollb, above aet iorth, it la w.-ovided, ,mong other thlngrj
that w the Ooumieeion ie hereby vsetod with po.:;er and au-
thoritp end it is hereby made its duty to euperviss end
.reeulate the traneportetlonof property r0r compensation
or him by notor vehiole on any publio hi&way In thla
State, to fix. preeoribe or.epprove the maxinun or ninl-
,. nnm or mxlc~urrl mci mi~nimm~ ratso. fores an4 ohcr@zsof saoh
motor aarrir-rin uoaortiunoewii.hthe o~moitio arovisions
horein oontolne.~.ql It will be observed tnat in thie pro- !
~ialon of the rtetute the term *motor ctirrier"is uaod end
aot Raorunonoerrierw or ‘“oontreotoarrier.” Looking to the
.'deflnltionof motor oarrier aa horeincbovo net forth wa i
.find that a motor carriermean8 any person, firm oorpora-
tion, oompenf, oo-partnership,eaaooietion or joint atook
aeeooiction, en& their leaseee, rooolvars or truoteea ep-
pointed by any Court whatsoever, owni~, oontmlllng, men-
aging, operating or oaualng to be operutod any motor pro-
pellod vehlclor used in transportingproperty for oompenea-
tion or hire over any pub110 hichwey In this Stats, Thlr
d~flnitlont in our opinion, lncludeo both oommon oarrier
end oontreot oerrier. In Sootion l-h oi dti0l.o Qllb, ebova
set forth, the term oontreot oerrier la dsiinod a8 any motor
oerrler aa hereinabove defined transportin% property SOr
oompeneetion or hire over any highway In this Stat0 othor
..than ea a oommon oarrlar. Boaring this definition in mind
it I8 our opinion that Saotlon 4-e. above aot iorth, eppllea
~both to oommon oerrlerr end.oontreot.oerrlorrellke and that
oonrtrulng 1-0 im ooaneotiomwith Sootion 67aa or Artlola
L# ", .I .a '. i ".. . I
, .' ,,'5. ,'i; !," "' , ,i'
i.. 8 :-
I.
.
Boaorabla
tea00 IL Xllddy, Dlrortor, Peeo 6
Ollb, aboo% ret forth, that 83otioa baa ploo%r a mande-
tory obligation on the Railroad Cotnmieeionto pr%eoribo
the minimum rate of oontreot oarriorr but does not pro-
hibit by it8 term the Ocmmieslon from pUtti@ a oslll~
on maximum rater to bo ohargod by ooatraot oarrlsrr. There-
fore, Under the general powers given to the Comml~slon and
mad% its duty under Gootion 4-e, above l%t forth, th3 Com-
mission rould hare tho power, should it 313ot to ororoiso
831~13 to ntfgilato oontraot oarrlera to th3 oxte$ ;; ~utlng .;
a oe111~ on the retoo to be oherged by them.
opinion that Sootlonr R, 3 end 4 of Artlole Ollb apply to
both oontreoa oerrierrrand oommon oarrim alike oxoopt la
thoao provlelon8 %xprcWJl~ thrroln rortrlotrd to ono or
the other.
In the oaeo of Texas Paoiflo RollvrayCompan
al v* Rail ad Commleel~n, et el, (Cir. App. Austin,
lS136. W. f”edl9~3,.the rOllottial:
18 6aidl
Vho 1931 AOt via.11
obrlouelr lntondrd to
oovcr and reculato ovary oharaoter of motor
06Triage oi freight for hire Ov%r tho hichwayr.
It deAOmimt%a one olasr Of oarrlar err'OOt!iiWXl
oerrlera’ though it nowhere undertaksr to dr-
fine that term; end the other 0133% a% ‘eon-
traot oarriors'whioh it dofin 6% say euoh
motor oerrler other than a oommon oarrler. The
definition of the ton ‘motor oarrior’ in sub-
divloiOn R, SeatiOn 1 f th d t. i% OlO%rl~
oompreheneivosnou& tt inotudz within that
39x-many and every ala%% or type of oarrior for
511~ over the hitiwayo of the Stats.” (Undo+
roaring oura)
Purther quoting'from lald oplnlon ca page 9W
NO ibid the tollowiw~
. . And where authorized ooatraot oar-
l .
rlers operate in oompatltlon with oommon oer-
rlers the Commisrlon must presorlbs minimum ret&,
farsm and oharges forsuah seruio%r whloh muet
not be law%r then those prmeorlb%a tOr oommoa
oerrlerr for rubutu@elly the lem~ IOMIOO~ SW
600, 64etm (Undrrroorlneourr)
I.L
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or.%
Honorable rame~ E, Kilday, Mreotor, Fags 6
.
wSeotIon 4 OS the AOt also makea it the dutl
o? the Oatrmisslon in the regulttlon o? author-
ised transportationtar hire over the highwaya,
Amos other thin&s @to ilr, preeorlbc or approvo
the nazlmum or mlI&lum or maxlmum andmln.lmum
rater, iarea and ohargee o? oaoh motor oarrier’
In aooordanoe with the other wovislons o? the
Aot.“(Underooorlpgourr) -
It ir our opinion that thie law WYBBdesigned to
oarrelate all o? the Stats’s transportationagenolss. 1t
Is made the duty o? the Commission to oatetully preserve
and rooter tranaportatlon~ in all o? its