Railroad Commission of Texas, Motor Transportation Division:

An Inventory of Correspondence at the Texas State Archives, 1923-1954 (bulk 1929-1942)

Agency History

The Railroad Commission of Texas had its origin in the demands of the shipping public in the late 1880s which insisted that railroads be subject to regulation based on public interest. An advocate for governmental regulation, Attorney General James Stephen Hogg ran for Governor in 1890 with the issue of railroad regulation as the focal point of the campaign. Hogg was elected Governor in the general election and the voters also approved an amendment to Article X, Section 2 of the Texas Constitution that empowered the Legislature to enact statutes creating regulatory agencies. These elections paved the way for the Legislature to enact on April 3, 1891 "An Act to Establish a Railroad Commission of the State of Texas," that later was placed in the Texas Revised Civil Statutes under article 6444 et seq. (House Bills 1, 3, and 58, 22nd Legislature, Regular Session).

The Commission originally consisted of three members appointed by the Governor for three-year terms. Governor Hogg appointed the first three Commissioners in 1891, including John H. Reagan, who resigned as U.S. Senator from Texas to serve as the first Chairman. The Texas Constitution, Article XIX, Section 30 was amended in 1894 to provide for elective six-year overlapping terms for the Commissioners. That same year John H. Reagan was elected and served until his retirement in 1903.

The Texas Railroad Commission was the first regulatory agency created in the State of Texas and originally had jurisdiction over the rates and operations of railroads, terminals, wharves and express companies. The legal focus was on intrastate passenger and freight activities. Interstate jurisdiction fell under the U.S. Interstate Commerce Commission. For the first twenty-five years of its existence, the Railroad Commission was largely concerned with regulating railroads, setting rates, receiving complaints, and making investigations. As other controversies arose where the Legislature deemed that the public interest could best be served by regulation, additional duties were assigned to the Railroad Commission.

The Railroad Commission's authority was broadened beginning in 1917 with the passage of the Pipeline Petroleum Law, Senate Bill 68, 35th Legislature, Regular Session, that declared pipelines to be common carriers like railroads and placed them under the Commission's jurisdiction. This was the first act to designate the Railroad Commission as the agency to administer conservation laws relating to oil and gas.

The Commission's regulatory and enforcement powers in oil and gas were increased by Senate Bill 350 of the 36th Legislature, Regular Session, the Oil and Gas Conservation Law, effective June 18, 1919. This act gave the Railroad Commission jurisdiction to regulate the production of oil and gas. Acting upon this legislation, the Commission adopted in 1919 the first statewide rules regulating the oil and gas industry to promote conservation and safety, including Rule 37. This rule requires minimum distances between wells at drilling sites in order to protect field pressure and correlative rights.

The Gas Utilities Act of 1920, House Bill 11, 36th Legislature, 3rd Called Session, gave the Commission regulatory and rate authority over individuals and businesses producing, transporting, or distributing natural gas in Texas. In 1937, following a large natural gas explosion in a school in New London, Texas, the 45th Legislature passed legislation giving the Railroad Commission the authority to adopt rules and regulations pertaining to the odorization of natural gas or liquefied petroleum gases (House Bill 1017, Regular Session). The passage of the Public Regulatory Act of 1975 (PURA), House Bill 819, 64th Legislature, Regular Session, required certain state regulatory agencies, including the Commission, to set the overall revenues of a utility based on its "cost of service."

Regulation of liquefied petroleum was added to the Commission's responsibilities in 1939 by House Bill 792, 46th Legislature, Regular Session. The legislation authorized the Commission to adopt and enforce safety rules and standards in the storage, handling, transportation, and odorization of butane or LP-gases. Regulation of compressed natural gas was added to the Railroad Commission's responsibilities in 1983 (Senate Bill 617, 68th Legislature, Regular Session).

The Motor Bus Law of 1927, House Bill 50, 40th Legislature, Regular Session, and the Motor Carrier Law of 1929, House Bill 654, 41st Legislature, Regular Session, extended the Commission's regulatory powers to commercial transportation of persons and property on state highways. Motor transportation activities were handled by the Motor Transportation Division. In 1995, following federal deregulation of motor carriers, the 74th Legislature eliminated the Commission's authority to regulate commercial carriers involved in intrastate transport and transferred the remaining responsibilities related to commercial carriers (motor carrier registration, insurance verification, and safety) to the Texas Department of Transportation (Senate Bill 971, Regular Session), and the Department of Public Safety (Senate Bill 3, Regular Session).

Railroad Commission support divisions include the Public Information Office, Personnel, Finance and Administration, Information Technology Services, Intergovernmental Affairs, and the Office of Internal Audit. Three elected Commissioners direct the operations of the agency.

In 1999, the agency had approximately 848 FTE (full-time equivalent) employees. Legal authority for the Railroad Commission is the Texas Constitution, Art. X, Sec. 2 and Art. XVI, Sec. 30; and the Natural Resources Code, Chapter 81.

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Scope and Contents of the Records

These files contain applications for motor bus or motor truck certificates or permits (originally accompanied by a filing fee) stating certain facts required by law. Opposition to application requests, formally presented at the hearings by rival motor companies and by railroads, are also in these files. Some photos are included in the files. Dates covered are 1923-1954 with the majority of records dating 1929-1942. Correspondence files were kept by the Motor Transportation Division of the Railroad Commission of Texas on commercial operators who applied for or were granted permits or certificates of convenience and necessity to operate on public highways. If authority to operate was granted, an applicant had to file acceptable insurance, secure a driver's license, and pay the required plate fees. Carriers and shippers were required to carry public liability insurance or put up a C.O.D. (cash on demand) bond and keep a file demonstrating such coverage with the Division. The correspondence files contain the original copies of these insurance policies or notarized sworn statements of the amount of bond. Outgoing correspondence from the Division is commonly notice of concellation of a certificate, usually due to failure to pay the license tax or to file the required amount of insurance.

Other types of correspondence to be found in a carrier's file include complaints by creditors and consumers. The outgoing replies from the Division explain that they could not settle shipping claims but did offer assistance by disclosing the amount of insurance coverage that the shipper had on file with the commission.

Access to most of the correspondence is by the name of the motor vehicle carrier. The inventory lists the folders containing correspondence, but they are not in alphabetical order. Researchers have to review the entire inventory if searching for a particular motor carrier.

This finding aid describes one series of the Railroad Commission of Texas records. See Railroad Commission of Texas: An Overview of Records for more records series.

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Restrictions

Restrictions on Access

None.

Restrictions on Use

Researchers are required to wear gloves provided by the Archives when viewing photographs.

Technical Requirements

None.

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Related Material

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Administrative Information

Preferred Citation

(Identify the item), Correspondence, Motor Transportation Division, Records, Railroad Commission of Texas. Archives and Information Services Division, Texas State Library and Archives Commission.

Accession Information

Accession numbers: 1961/005 and others unknown

Some of these records were transferred to the Archives and Information Services Division of the Texas State Library and Archives Commission by the Railroad Commission of Texas in October 1961 and at other undetermined dates.

Processing Information

Described by Paul Beck, June 1985

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Detailed Description of the Records

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