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Supreme Court — Part 5

77 pages · May 11, 2026 · Document date: Aug 22, 1960 · Broad topic: Cold War & Communism · Topic: Supreme Court · 76 pages OCR'd
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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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