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Ronorable 6. R. HeRame OVERRULED
By s-165
Direotor. Rate Division
Railroad Commf88ion of Texas
Auatln, Texas
Dear Sir: Opinion Ro. O-2954
R4t Whether ctarrisr4 hauling for
th4 Federal Uovermnent muat
charge the rates iixed by the
RaUroad Commission.
In your letter of Deoember 13, 1940, you 4n4los4 oopy of au
opinion written to you on April 13, 1938,by Aseiatant Attorney
Oermral Albert Q. Wdker, in afCeat holding that the Federal
Govemment may oontraot for.oarrlar 44mio44 to b4 performed
tor it, without obrmvfng therates approved by the Railroad
Commiaelon of Texata, where tha ooatvact is made pursuant to
advertisement for bide. You now requ4et wr opinion as to
whether oarrlern of intrartet4 freight for the Fsd4ral f3ovsrmgnt
mu4t demand urd rsaeivo the ohrrg44 approved by th4 Rails-oad
Cooaaiasfon,OF wh4th4r rush carriera may disregard therater and
oharges approved by the Railroad ~omaleeion in making oontraotrr
for the transportation of goods for the Federal Oovermeat. Yours
letter lndioates that you are partiaularly conaerned with the movement
of freight for the RuBed States Army and we will oonflne our
opinion to the tramportation of good8 for the mUitary. Thie la not
meant to imply that the rule is oth4rwise a8 to other arms or
departments of the Federal riovernment $ merely that it may not be.
For lnstanae, it is at laast possible that aom auoh arms or
departments may be instruoted to comply with etate regulations M-
latfng to rates and fares. At least, 14 would not wish to attempt
to give au answer applloable in all inatanoes of transportation for
ths Federal (‘rovernment.
Among other thinga, Seation 8 of Article 1, Constitution of tha
United Statea, provides that the Congress shall have the power to
“provide for the oonnnondefense and general welf4r4 of the United
States; . . . To raise and support ermies . . .; To provide aud
main n navy; . . . To make all laws whioh shall be neoassary and
proper for carryhg into 4l8eUtiOn the fOr8gOiq pOwera, . . .*
,- Section 5, Title 41, U.$.C.A., reade:
.
.
Honorable C. R. YoRamebr page 2, O-2954
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"I 5.
Advertisements for proposals for purchases ahd
aontraotsfor auppliee or aervioea for departamnta of
Ooverumsnt. Exoept as otherwise provld4d by law all
pureha8ea and oontraota for auppli48 or 44rrrio48 in
any of th4 d4partmenta pi th4 Oov4maunt and purohaa48 or
fndiar,auppll4a, exo4pt for personal aervioea, shall bo
made by adv4rtiaing u auffioient tim4 pr4vioualy for pro-
poacla r4spectzng tho aam4, ??h4n the pub310 exl-
gewiea do not requirs the lxamediata delivery of th4
arPlol48, or g14rfox-m4n44of t.hO 84rvio4. 'When immediate
delivery or perfoqance is rtrquiredby the public exigency,
tha artio&ea or ~4~7104 rvqulr4d mayhe prooured by open
purchase or contaaet, at the plao4a and in the avmn4r in
which suoh articles arc, uaually bought and sold, or auoh
ler vlo sa engag4di between lndividualar"
84ation 1374, Title 30, U.S.C.A., rsadar
"1 1374. Transportation of Army 4%or4a by private parties.
All traneportatlon of atoms by prIvateparties for th4
Amy ahallbe dono by oontraot , after 'i&14 legal advartia~-
r4nt+ 4xo4pt ln oaa4a'ot 4mD 4a4y. uhlah mt b4 at ono4
r4port4U to th4 S4orrtaay of"sfar for hia approval."
/--- S4otion 561, Tit;l4 34, U.S.C.A., provides that "411 proviaiono,
olothiug, hup, and other xeterlala of every name and neture,
for t&4 ~44 of th4 Xavy, Audi+&;hetranaportabion thtizvmf,when
~perait, ahall, axeopt,am othoxw%.a4pruvided
:r~~;tia~rill. bra Irr,
,be furnished by oontraot, by the low4at bld(@r,e and thsn,,gian
dir44tiona to be tollowed by th4 seorstary of the.llavyin,advortla-
ing for bids.
'5.0far aa your questlor is bonoern4d w4 think it la immaterial
whether~the aontraot is made after advertiamsnt ror bids or
otherwlae, Tha Congress has enjoined upon the officer4 of the
Faderal Oovernmtnt the duty to 144ke auoh oontraota, by statutes
plainly evid4noing an in*4nt for auoh offlo4ra to obtain th4
moat eaonomiaal trenaportatlon joaalbl4. l’bo ahargo to ba
mad8 for th4 s4mi4e is a amjor fw,tor in auoh oontraota for
oarrler servitor To allow t+e Stnto to fix the rates land ahargaa
for the transportation a4rvio4 involved in th44o aoutraota would
,,beto permit it to amk4 ths oontract in large pert. Such would
oonatltute a dir4ot int4rfer4no4 with th4 B4deral Oovsmusent in
its discharge of oonstitutional funations. Th4 principles
.annouucedin such oases as Louw4in va. ,Moody,12 S.W. (26) 9598
Johnson vs. Mary16mdi 254 U.S. 51, s. ct. 16; Yotaalf VS.
Mitchell, 269 U.S. 514, 0 L. Ed. 3 4, ,PahhandleOil Co. va. Miss.,
277 U.S. 218, 72 L. Ed. 's, p
57, are applloable.
In our opinion, oarriera may olontrectwith the Fed4ral Oovernment
for the transportation of intrantate freight for th4 military with-
out re ard to the ratea and fares ap c ved~b
s is ,true whether the oontraoi 88 ad
And th!i g%Ki~r~dsc%E!%~BQigOP*
ment for bida or not. Approved
Yours very truly, Opinion
ORL:OO/cg AT'i'O8NE:Y
CSBtRAL OF PizXAS
APPHOVED DEC. 18, 1940 Committee,
Yy (flennR. Lewis 5g EWE, chrn
Attorney &moral of Texas Assistant