Co of Texas v. Mars

• Citation: 73 L.Ed. 316,278 U.S. 258,49 S.Ct. 103
• Decision Date: 02 January 1929
• Docket Number: MISSOURI-KANSAS-TEXAS,No. 88,88
• Parties: R. CO. OF TEXAS v. MARS et al
• Court: United States Supreme Court

278 U.S. 258

49 S.Ct. 103

73 L.Ed. 316

MISSOURI-KANSAS-TEXAS R. CO. OF TEXAS

v MARS et al.

No. 88.

Submitted Nov. 28, 1928.

Decided Jan. 2, 1929.

Messrs. Fred Wallace, of Fort Worth, Tex., Charles C. Huff, of Dallas, Tex., Joseph H. Barwise, of Fort Worth, Tex., and Rush L. Holland and George E. Strong, both of Washington, D. C., for plaintiff in error.

Messrs. James A. Templeton and Robert L. Carlock, both of Fort Worth, Tex., for defendants in error.

Mr. Justice BUTLER delivered the opinion of the Court.

The predecessor of plaintiff in error was the Missouri, Kansas & Texas Railway Company of Texas. In 1915, its properties were placed in the hands of a receiver ap- pointed by the United States court for the Northern District of Texas. In 1917, defendants in error obtained a judgment in the district court of Dallas county, Texas, against that company and another carrier on a claim for damages to cattle being transported prior to the appointment of the receiver. The judgment was allowed as an unsecured claim. Pursuant to an order of court, the receiver sold the railroad properties subject, among other things, to claims under article 6625 of the 1911 Revised Civil Statutes of Texas (article 6422, 1925 Revision). The purchasers and their associates organized plaintiff in error and transferred to it the railway properties aforesaid, and that company continued to operate them in the service of the public as a common carrier. Defendants in error brought this suit to recover from plaintiff in error the amount remaining unpaid and to have foreclosed a lien therefor which it claimed to have under article 6625 upon the railroad properties so acquired. Plaintiff in error maintained that the state statute is repugnant to Interstate Commerce Act, § 20a, added by Transportation Act 1920, § 439 U. S. C. tit. 49 (49 USCA § 20a). The district court adjudged defendants in error entitled to recover, held the claim to be within the purview of article 6625 and a lien upon the railroad properties, and decreed foreclosure. The Court of Civil Appeals reversed. The Supreme Court reversed the latter and in all things affirmed the decree of the district court. The case is here under section 237(a), Judicial Code (28 USCA § 344(a)).

The pertinent parts of article 6625 follow: 'In case of a sale of the property and franchises of a railroad company within this State the purchaser * * * and associates, * * * may form a corporation * * * for the purpose of acquiring, owning, maintaining and operating the road so purchased * * *; and, when such charter has been filed, the new corporation shall have the powers and privileges then conferred by the laws of this State upon chartered railroads. * * * The property and franchises so purchased shall be charged with and subject to the payment of all subsisting liabilities and claims for death and personal injuries * * * for loss of and damage to the property sustained in the operation of the railroad by the sold out company * * * and for the current expenses of such operation.'

The provisions of ...