Untitled Texas Attorney General Opinion

TWEA-JTORNEY GENERAL OF TEXAS Honorable James'E. Kildag, Director Motor TransportatLon Division Railroad Cotimlssionof Texas Austin, Texas Dear Sir: Opinion No. O-1843 Re: Authority of Railroad Comniisslonto limit interstate operations of High- way Motor Freight Lines, Inc. You have handed to us copy of a certificate of conven- ience and necessity, dated January 14, 1936, issued to Highway Motor Freight Lines, Inc., authorlzlng an exclusively inter- state operation, using not more than thirty-nine trucks. The certificate contains the following: "RESTRICTH) ENTIRELY TO THE TRANSPORTATION OF COMMODITIES MOVING IN INTERSTATE COMMERCE, FROM POINTS BEYOND THE STATE LINE TO POINTS WITHIN THE STATE OF TEXAS, AND FROM POINTS WITHIN THE STATE OF TEKAS TO POINTS BEYOND THE STATE LINE; BUT PROHIBITED FROM MOVING ANY COMMODITIES EITHER INTERSTATE OR INTRASTATE, BETWEEN ANY TWO TEXAS POINTS. "THIS CERTIFICATE SHALL BE LIMITED AND RESTRICTED TO NOT MCEEDING TWO ROUND TRIPS PER WEEK OVER ANY OF THE FOLLOWING HIGHWAYS: "State Highways Nos. 1, l-A, 2, 3, 5, 6, 7, 8, 9, lo 12, 13 14, 15, 16, 20, 24, 26, 31, 35, 40, 43, 64, 71, 86 and 19 as far South as Huntsville and no further, 45, 156, 114 and 121. "Federal Highways Nos. 66, 67, 69, 77, 277 and 370 from Bowie to Amarillo." In your letter of June 7, 1940, you request our opinion in response to the following questton: 'Does the Railroad Commisslon of Texas have the authority to restrict motor carriers oper- ating wholly in interstate commerce to the ex- tent of prohibiting said interstate carriers from serving intermediate points?" - Honorable James E. Kilday, page 2 O-1843 To make your question clear you offer the illustration that the port of Houston receives a-large,vblume of freight moving byboat from the Atlantic seaboard, and it is there unloaded and immediately placed on motor vehicles for trans~ portation to Dallas and other Texas cities, points of original destliiation. You mention that this freight universally has- been accepted as freight moving in interstate commerce, which Is undoubtedly correct. Highway Motor Frel ht Lines, Inc., desires to receive'such freight at Houston 7and other Texas cities under similar circumstances), transport the same over highways described in the certificate and'.deliverit at points in Texas on such highways. As an illustration;'in a purely interstate transaction, it would pick up goods at Houston and deliver the same at Dallas wFthout deviating from the highways named In its certificate. The Highway Motor Freight Lines, Inc., holds a certi- ficate from the Interstate Commerce Commtssion which would authorize the operation so far as that body is concerned. The validity of the restriction prohibiting the carri.er.'from mov- ing any commodities in interstate commerce between any two Texas points is thus brought into question. Since the Federal Congress enacted the Motor Carrier Act of 1935, 49 U.S.C.A., Sec. 301, et seq., the Railroad Com- mission of'Texas cannot concern itself with questions oi~public necessity and convenience with respect to purely Interstate motor carriers, those questions being within the field occupied- by the Congress. However, in the case of Thompson vs. McDonald, 95 Fed. (2d) 937, certiorari clenled,it was held that the pre- servation and safety of the highways themselves are still with- in the jurisdiction of the Railroad Commission, and that this body may still deny the use of the highways to an interstate carrier when it is sufficiently shown that the preservation of the highways and safety of the traveling public would be en- dangered by the added traffic burden. As you know, the Austin and.Waco Courts of Civil Appeals have followed that decision in a number of cases, in some of which writs of error were denied. The certificate in question authorizes only the carry- ing of freight in interstate commerce from a point within this State to a point without its boundaries, and vice versa. This, of course, is a narrower authority than if the carrier were allowed to handle any and all Interstate shipments regardless of the points where it mfght receive or deliver the same. Its use of the highways is correspondingly less. In granting the certificate upon such terms as it contained, the Railroad Com- mission necessarily found that the highways traversed,could Honorable James E. Kilday, page 3 o-1843 properly handle the narrower service. On the other hand, there is absent any finding that the highways wouldbe able to withstand the added burden of the heavier traffFcwhlch would~~'follow from the~broader authority, - that Is, a cer- tificate authorizing an unrestricted interstate operation over all the hIghways described. Our opinion follows that the RaIlroadCommission has the authority to enforce the restriction contained In the certificate. Yours very truly ATTORNEY GENERAL OF TEXAS By s/Glenn R. Lewis Glenn R. Lewis Assistant -GRL:LW:wc APPROVED JUN 18, 1940 s/Gerald C. Mann ATTORNEY GENERAL OF TEXAS Approved Opinion Committee By s/BWB Chairman