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Supreme Court — Part 5
Page 26
26 / 77
No. 920.—OctToper TERM, 1933.
The State of Texas, Railroad Commis- —
sion of the State of Texas, et al., Ap-| Appeal from the District
pellants, Court of the United
vs. States for the Western
f£ Missouri.
The United States of America, Inter-; Distriet
state Commerce Commission, et al.
[June 4, 1934,]
Mr. Chief Justice Hugues delivered the opinion of the Court.
The Interstate Commerce Commission, by its report and order
of October 4, 1933, authorized the Kansas City Southern Railway
Company, a corporation organized under the laws of Missouri, to
acquire control by lease of the railroad and properties of the Tex-
arkana & Fort Smith Railway Company, incorporated under the
laws of Texas. 193 I. C, ©. 521, In this suit, the State of Texas,
and officers and municipalities of that State, assailed the order
as transcending the authority granted to the Commission by the
Congress. The order was sustained by the District Court (6 F.
Supp. 63), three judges sitting as required by statute, and from
its decree this appeal is taken.
The single point in controversy is with respect to the authority
of the Commission to approve the acquisition of control by a lease
which permits the lessee to abandon, or to remove from the State,
the general offices, shops, ete., of the lessor. The provision of
Section 5 of the lease, which has that effect, is set forth in the
margin.! The provision is attacked as being in violation of the
'*But the Southern Company (applicant) does not assume the performance
of any corporate obligations on the part of the Texarkana Company inde-
pendent of its obligations as a common carrier. The Southern Company does
not assume any obligation to maintain, during the term of this lease, any
gencral offices, machine shops or roundhousea for or belonging to the Texar-
kana Company at any particular place or places, regardlesa of present or
previous locations thereof; but shall have the right to change any existing
location of general offices, machine shops, roundhouses and terminal facilities,
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