Railroad Commission of Texas, Main Office and Transportation Division:

An Inventory of Interstate Commerce Commission Finance Dockets at the Texas State Archives, 1920-1952

Main and Transportation Division/Rail Division History

The Railroad Commission of Texas had its origin in the demands of the shipping public in the late 1880s that 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 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.

The Commission's authority over railroads diminished over the latter half of the twentieth century. The Federal Railroad Safety Act of 1970 vested rail safety responsibilities in the Federal Railroad Administration. In 1980, the Federal Staggers Rail Act largely eliminated the Commission's responsibility for setting rates for intrastate railroads. By 1984, the Commission ceased its role in the economic regulation of the Texas rail industry. Regulatory powers over rail safety were granted to the agency in 1985 when the 69th Legislature authorized the Commission to implement a rail safety program in conjunction with the Federal Railroad Administration Act of 1970 (Senate Bill 444, 69th Legislature, Regular Session).

Railroad regulation was initially overseen by the Main Office, later the Main and Transportation Division, then the Transportation Division. The division charged with rail responsibilities today is the Rail Division. This division is responsible for checking equipment and track, railroad and signal operations, and hazardous material handling; conducting investigations of accidents and complaints concerning railroads; and securing federal funds to improve branch lines and preserve rail service to rural areas. The Division enforces rules aimed at removing obstructions on railroad rights-of-way and operates a crossing safety education program. There are two main sections in this division - Rail Safety and Rail Planning.

The Interstate Commerce Commission (ICC) was given authority over most aspects of the railroad industry in the early 20th century (detailed in the U.S. Transportation Act of 1920), including regulation of interstate rates, limited regulation of intrastate rates, and authority over granting railroad companies certificates of public convenience and necessity. This series concerns the last activity. Railroad companies made applications to the ICC for these certificates in order to acquire and/or operate any lines or extensions, to construct new lines, to extend or abandon lines, to acquire control over other carriers, to consolidate railroad properties or consolidate two or more companies into a single corporation, to issue and sell stock, to extend their line of financial obligation, to lease transportation equipment and facilities, to apply for loans from the ICC's revolving track fund, and in a few other situations. The ICC also undertook recapture proceedings against companies reporting excess income.

The Texas Railroad Commission, at the request of the ICC, would often hear cases for the ICC (or jointly with the ICC) involving applications for certificates of public convenience and necessity and would recommend to the ICC whether or not to grant the application. The Railroad Commission interaction with the ICC was through the Main Office (later Main Office and Rate Division, then Main Office and Transportation Division).

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 records consist of ICC finance docket files, generally consisting of applications; briefs, exhibits, questionnaires, and other items gathered for or presented during the hearing; the report of the ICC as to the outcome of the railroad company's application; and correspondence. Files are dated 1920-1952. The finance docket files concern applications for certificates of public convenience and necessity by rail companies. Docket topics include construction of new lines, extension of lines, acquisition of lines, abandonment of lines and/or operations, consolidation of railroad companies, recapture proceedings of excess income, extension of liens and mortgages, issuing and selling stocks and bonds, loans through the revolving track fund, and other topics. Most railway lines operating in Texas during this time period (1920-1952) are represented.

Supplementing the case documents are correspondence between the ICC Commissioner and the Governor or the Railroad Commission; correspondence between railroad companies and the Railroad Commission; some correspondence from city and county officials and others to the Railroad Commission concerning proposed changes of railroad companies; maps showing proposed extensions, track to be abandoned, lines in operation, right-of-way maps along railroad lines, general railroad maps of areas, and other railroad related topics; prospectus and charters of railroad companies; specimen sheets of stocks or bonds to be offered for sale; and some photographs used for exhibits, showing things such as railroad depots and the condition of tracks. A few docket files not titled as "finance dockets" are scattered through the files. These are filed by their date rather than the docket number.

Dates given on the folder reflect the dates of the dockets and the materials associated with it. In a few cases, the only items in the files are supplemental applications and associated materials which were often filed years after the initial case was heard. These particular cases are filed by the original date, in brackets, followed by the dates of the supplemental materials. Materials used as exhibits (maps, charts, etc.), may date back to the late 19th century or early 20th century. Dates of materials used as exhibits are not included in the folder titles.

Preceding the alphabetical files is a list of dockets, giving dates applications were filed and decided upon, for the years 1927-1936. At the end of the series is a Box of materials from docket 8448, Texas and Northern Pacific Railroad. These were originally housed with part of another series in the Railroad Commission records. Additional materials from this docket can also be found in the regular alphabetical listing.

To prepare this inventory, the described materials were cursorily reviewed to delineate series, to confirm the accuracy of contents lists, to provide an estimate of dates covered, and to determine record types.

This finding aid describes a single 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 reviewing photographic materials.

Technical Requirements

None.

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Related Material

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Administrative Information

Preferred Citation

(Identify the item), Interstate Commerce Commission financial dockets, Main Office and Transportation Division, Railroad Commission of Texas. Archives and Information Services Division, Texas State Library and Archives Commission.

Accession Information

Accession number: 1990/097

These records were transferred to the Archives and Information Services Division of the Texas State Library and Archives Commission by the Rail Planning/Rail Safety Division of the Railroad Commission of Texas on March 6, 1990.

Processing Information

Laura K. Saegert, October 1990

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Detailed Description of the Records