*. i- ‘i 

. . -. 

,- 

Ronorable 6. R. HeRame 

Direotor. Rate Division 

Railroad Commf88ion of Texas 

Auatln, Texas 

OVERRULED By s-165 

Dear Sir: Opinion Ro. O-2954 

R4t Whether ctarrisr4 hauling for 

th4 Federal Uovermnent muat 

charge the rates iixed by the 

RaUroad Commission. 

In your letter of Deoember 13, 1940, you 4n4los4 oopy of au 

opinion written to you on April 13, 1938, by Aseiatant Attorney 

Oermral Albert Q. Wdker, in afCeat holding that the Federal 

Govemment may oontraot for. oarrlar 44mio44 to b4 performed 

tor it, without obrmvfng therates approved by the Railroad 

Commiaelon of Texata, where tha ooatvact is made pursuant to 

advertisement for bide. You now requ4et wr opinion as to 

whether oarrlern of intrartet4 freight for the Fsd4ral f3ovsrmgnt 

mu4t demand urd rsaeivo the ohrrg44 approved by th4 Rails-oad 

Cooaaiasfon, OF wh4th4r rush carriera may disregard therater and 

oharges approved by the Railroad ~omaleeion in making oontraotrr 

for the transportation of goods for the Federal Oovermeat. Yours 

letter lndioates that you are partiaularly conaerned with the movement 

of freight for the RuBed States Army and we will oonflne our 

opinion to the tramportation of good8 for the mUitary. Thie la not 

meant to imply that the rule is oth4rwise a8 to other arms or 

departments of the Federal riovernment $ merely that it may not be. 

For lnstanae, it is at laast possible that aom auoh arms or 

departments may be instruoted to comply with etate regulations Mlatfng to rates and fares. At least, 14 would not wish to attempt 

to give au answer applloable in all inatanoes of transportation for 

ths Federal (‘rovernment. 

Among other thinga, Seation 8 of Article 1, Constitution of tha 

United Statea, provides that the Congress shall have the power to 

“provide for the oonnnon defense and general welf4r4 of the United 

States; . . . To raise and support ermies . . .; To provide aud 

main n navy; . . . To make all laws whioh shall be neoassary and 

proper for carryhg into 4l8eUtiOn the fOr8gOiq pOwera, . . .* 

Section 5, Title 41, U.$.C.A., reade: 
. 

. Honorable C. R. YoRamebr page 2, O-2954 

-- 

"I 5. Advertisements for proposals for purchases ahd 

aontraots for auppliee or aervioea for departamnta of 

Ooverumsnt . Exoept as otherwise provld4d by law all 

pureha8ea and oontraota for auppli48 or 44rrrio48 in 

any of th4 d4partmenta pi th4 Oov4maunt and purohaa48 or 

fndiar,auppll4a, exo4pt for personal aervioea, shall bo 

made by adv4rtiaing u auffioient tim4 pr4vioualy for propoacla r4spectzng tho aam4, ??h4n the pub310 exlgewiea do not requirs the lxamediata delivery of th4 

arPlol48, or g14rfox-m4n44 of t.hO 84rvio4. 'When immediate 

delivery or perfoqance is rtrquired by the public exigency, 

tha artio&ea or ~4~7104 rvqulr4d mayhe prooured by open 

purchase or contaaet, at the plao4a and in the avmn4r in 

which suoh articles arc, uaually bought and sold, or auoh 

l er vlo sa engag4di between lndividualar" 

84ation 1374, Title 30, U.S.C.A., rsadar 

"1 1374. Transportation of Army 4%or4a by private parties. 

All traneportatlon of atoms by prIvateparties for th4 

Amy ahallbe dono by oontraot , after 'i&14 legal advartia~- 

r4nt+ 4xo4pt ln oaa4a'ot 4mD 

"sf 

4a4y. uhlah mt b4 at ono4 

r4port4U to th4 S4orrtaay of ar for hia approval." 

/--- S4otion 561, Tit;l4 34, U.S.C.A., provides that "411 proviaiono, 

olothiug, hup, and other xeterlala of every name and neture, 

for t&4 ~44 of th4 Xavy, Audi +&;he tranaportabion thtizvmf, when 

:r~~;tia~rill. ~perait, ahall, axeopt, am othoxw%.a4 pruvided bra Irr, 

,be furnished by oontraot, by the low4at bld(@r,e and thsn,,gian 

dir44tiona to be tollowed by th4 seorstary of the.llavy in,advortlaing for bids. 

'5.0 far aa your questlor is bonoern4d w4 think it la immaterial 

whether~the aontraot is made after advertiamsnt ror bids or 

otherwlae, Tha Congress has enjoined upon the officer4 of the 

Faderal Oovernmtnt the duty to 144ke auoh oontraota, by statutes 

plainly evid4noing an in*4nt for auoh offlo4ra to obtain th4 

moat eaonomiaal trenaportatlon joaalbl4. l’bo ahargo to ba 

mad8 for th4 s4mi4e is a amjor fw,tor in auoh oontraota for 

oarrler servitor To allow t+e Stnto to fix the rates land ahargaa 

for the transportation a4rvio4 involved in th44o aoutraota would 

,,be to permit it to amk4 ths oontract in large pert. Such would 

oonatltute a dir4ot int4rfer4no4 with th4 B4deral Oovsmusent in 

its discharge of oonstitutional funations. Th4 principles 

.annouuced in such oases as Louw4in va. ,Moody, 12 S.W. (26) 9598 

Johnson vs. Mary16mdi 254 U.S. 51, 

Mitchell, 269 U.S. 514, 

's, p 

s. ct. 16; Yotaalf VS. 

0 L. Ed. 3 4, ,Pahhandle Oil Co. va. Miss., 

277 U.S. 218, 72 L. Ed. 57, are applloable. 

In our opinion, oarriera may olontrect with the Fed4ral Oovernment 

for the transportation of intrantate freight for th4 military without re ard 

!i 

to the ratea and fares 

And th s is ,true whether the 

ap c ved~b 

oontrao i 88 ad g%Ki~r~dsc%E!%~BQigOP* 

ment for bida or not. Approved 

ORL:OO/cg 

Yours very truly, Opinion 

APPHOVED DEC. 18, 1940 

AT'i'O8NE:Y CSBtRAL OF PizXAS Committee, 

Attorney &moral of Texas Yy (flenn R. Lewis 

Assistant 5g EWE, chrn