Railroad Commission v. Galveston Chamber of Commerce

• Decision Date: 03 April 1912
• Citation: 145 S.W. 573
• Parties: RAILROAD COMMISSION OF TEXAS et al. v. GALVESTON CHAMBER OF COMMERCE et al.
• Court: Texas Supreme Court

Page 573

145 S.W. 573

RAILROAD COMMISSION OF TEXAS et al. v.GALVESTON CHAMBER OF COMMERCE et al.

Supreme Court of Texas.

April 3, 1912.

Error to Court of Civil Appeals of Third Supreme Judicial District.

Action by the Galveston Chamber of Commerce and others against the Railroad Commission of Texas and others.From a judgment of the Court of Civil Appeals(137 S. W. 737), reversing a judgment for defendants and rendering judgment for plaintiffs, defendants bring error.Reversed, and judgment of district court affirmed.

Andrews, Ball & Streetman, of Houston, Baker, Botts, Parker & Garwood, of Houston, Gregory, Batts & Brooks, of Austin, Williams & Stedman, of Austin, J. P. Lightfoot, Atty. Gen., and J. D. Walthall, Asst. Atty. Gen., for plaintiffs in error.Yancy Lewis and Nelson Phillips, both of Dallas, for defendants in error.

BROWN, C. J.

This action was instituted by the Galveston Chamber of Commerce and some citizens against the Railroad Commission of Texas under the following articles of the Revised Statutes:

"Art. 4565.If any railroad company or other party at interest be dissatisfied with the decision of any rate, classification, rule, charge, order, act or regulation adopted by the Commission, such dissatisfied company or party may file a petition setting forth the particular cause or causes of objection to such decision, act, rate, rule, charge, classification or order, or to either or all of them, in a court of competent jurisdiction in Travis county, Texas, against said Commission as defendant.Said action shall have precedence over all other causes on the docket of a different nature, and shall be tried and determined as other civil causes in said court.Either party to said action may appeal to the appellate court having jurisdiction of said cause, and said appeal shall be at once returnable to said appellate court, at either of its terms, and said action so appealed shall have precedence in said appellate court of all causes of a different character therein pending; provided, that if the court be in session at the time such right of action accrues, the suit may be filed during such term and stand ready for trial after ten days' notice.

"Art. 4566.In all trials under the foregoing article the burden of proof shall rest upon the plaintiff, who must show by clear and satisfactory evidence that the rates, regulations, orders, classifications, acts or charges complained of are unreasonable and unjust to it or them."

No questions arise upon the pleadings; they were appropriate and sufficient on both sides.

The case was tried in Travis county before the Honorable Chas. A. Wilcox, district judge, without a jury.The judge made a comprehensive and very clear statement of the facts found, upon which he entered judgment for the Commission, from which an appeal was taken by the plaintiffs to the Court of Civil Appeals of the Third District, which reversed the judgment of the district court and rendered judgment for the plaintiffs, Chamber of Commerce and others, enjoining the enforcement of the tariffs, orders, and regulations complained of.The Honorable C. H. Jenkins delivered the opinion of the court, filing a finding of facts which is a condensation of the more elaborate statement by the trial judge.No objection has been made to the findings of either court.We believe that a better comprehension of the case can be had from the statement of the trial court in connection with that of the Court of Civil Appeals; therefore from both statements we restate the case, as follows:

Galveston is situated on an island, and has a population of 37,000.It has deep water, and the largest sea-going vessels enter its harbor, making its commerce, domestic and foreign, of imports and exports extensive and important.In the city are firms doing large and lucrative business in various lines, among others, cotton factors, who buy cotton and ship it to other markets reached by the seas.Seven railroads enter Galveston from the mainland of Texas, two of which do not pass through Houston, to wit, the Gulf, Colorado & Santa Fé and the Gulf & Interstate.From Houston, the following railroads reach Galveston: International & Great Northern Railroad; the Galveston, Houston & Henderson Railroad; the Galveston, Harrisburg & San Antonio Railroad; the Trinity & Brazos Valley Railroad.The Gulf & Interstate Railroad is owned by the Gulf, Colorado & Santa Fé Railroad Company.Houston is reached by these railroads: Texas & New Orleans from the east; Beaumont, Sour Lake & Western from the east; Houston, East & West Texas from the northeast; Houston & Texas Central, International & Great Northern, Trinity & Brazos Valley and Missouri, Kansas & Texas from the north; Galveston, Harrisburg & San Antonio from the west; San Antonio & Aransas Pass from the west; Gulf, Colorado & Santa Fé Railway Company from the southwest over its branch from Alvin; St. Louis, Brownsville & Mexico, operating its trains over the Gulf, Colorado & Santa Fé tracks, and the Galveston, Houston & Henderson, operating from Houston to Galveston.

We copy the following conclusions of fact filed by the trial judge:

"I find from all points on the Gulf, Colorado & Santa Fé Railroad the direct mileage over said road to Galveston is less than through Houston.This is true of the main line and also of the East Texas line of this company, where the shipments are made by Beaumont over the Gulf & Interstate Railroad.However, from Brenham and all points north of Brenham on the main line of this railroad, the distances by combination over other lines of railway are less to Galveston through Houston than over this company's own line.On all other lines entering Galveston, the mileage to Galveston is shorter through Houston than by any other combination, with the exception of all points on the St. Louis, Brownsville & Mexico Railway, via Algoa and the Santa Fé, all points on the Mexican National Railway, via the St. Louis, Brownsville & Mexico Railway and Algoa, all points on the Galveston, Harrisburg & San Antonio west of Rosenberg, via that point and the Santa Fé, all points on the San Antonio & Aransas Pass, via Wallis and the Santa Fé, and from all lines south of the Galveston, Harrisburg & San Antonio and San Antonio & Aransas Pass in that territory west of Rosenberg and Wallis.

"I further find that much the greater portion of the cotton and other freight carried to and from Galveston is carried by the railways by way of Houston; and that by reason of shorter mileage and the location of the railroads that is the natural route for all such traffic, except that carried over the Santa Fé.

"(10) The Gulf & Interstate Railroad reaches Galveston by way of a ferry from Port Bolivar, its trains being ferried a distance of five miles, which service is more expensive than the operation of trains over the roadbed of said company for a like distance.

"(11) All the other railroads entering Galveston cross Galveston Bay on a bridge about two miles in length.Other bridges have been used, but have been washed away by storms, and only the present bridge was rebuilt, at a cost of $145,000.For the use of this bridge, the roads pay an interest rental and a proportion of the cost of maintenance.The present bridge is a standard wooden bridge of its kind, and is adequate to carry the traffic over it, with the exception that its use by the several roads causes delay in traffic and consequent expense.The bridge, however, is not considered a permanent structure, in that it is a wooden bridge, and is subject to damage or destruction by storms.

"(12) There is at present under construction a causeway over the bay, which will be used by all of the railroads, except the Gulf & Interstate.The Gulf, Colorado & Santa Fé, the Galveston, Houston & Henderson and the Galveston, Harrisburg & San Antonio are under contract to pay one-half of the cost.The total expense of these three railroads for their one-half of cost of construction and for completing their tracks across the causeway will be $800,000.

"(13) On the railroad crossings between Houston and Galveston, it is necessary to operate a number of interlocking devices, ranging in initial cost of from $4,500 to $10,000 or $12,500 each, and costing from $150 to $250 per month each for maintenance and operation.Two drawbridges are also in use, one near Houston, and one on the Galveston bridge.With the exception of drawbridges at the Texas & New Orleans bridges over the Trinity and Neches rivers, it is not shown that drawbridges are necessary elsewhere in the state.It is also shown that there are a number of interlocking devices on the Texas & New Orleans on the divisions east and west of Houston, and that interlocking devices are in use in Houston, Dallas, and all large railroad centers.

"(14) The expense paid by railroads for labor for operating trains is greater per mile between Houston and Galveston, for the reason that Houston is a division point; the Houston-Galveston division being approximately 50 miles in length.Train crews are paid on a basis of a run of 100 miles; the compensation for the shorter run being the same as for 100 miles.The cost of one crew for 100 miles is $22.83, the same cost that is incurred by the railroads for a crew operating between Houston and Galveston.

"(15) The absence of grades, however, makes it possible for the railroads to handle about double the amount of freight between Houston and Galveston with a single crew as can be ordinarily handled with the same crew in the interior.

"(16) Expense of switching and handling cars at Galveston, not including the terminal railway charges on export traffic, is 18 cents per car at Galveston and 15 cents per car at Houston and less at interior points; at small division points the cost being from 1 to 2 cents.

"(17) The cost of coal for the operation of the average train between Houston and Galveston, considering the distance as 50 miles, is $20,...