### 828

OFFICEOFME **A7-rORNEY** GENERAL OFTEXAS AUSTIN

Honorable W~lllam J. 

### Lavaon Seoretary of State **Austin,** 

### Texas

. Attentlonr Mr. Will JbmnRlaberdaoa’ *



### Dear S1r1 opinion RO. 

### o-3989 ROB Does **a** corporetion bavo **a** right to operate **a** cllty bus 1Ine under auMlvlaIon 66, Article 

### 1302, **Yernotlla** Annotated civil Statutes, end related queatlona?
Your letter of September16, 1941, requeatIng **the** opinion of this depertmant on the questions stated herein, reads Ln part as r”ollovsz

“Theabove namedcorporation vaa rented a charter using as Its purpose SubdIvIsIon 6%of ArtIale 1302 ‘to aatabllsh andmaIntaln a line of stages.’ Underthis aubdIvIaIon the corporation her been operating buses In the City of Ulchlta F8118.
“In order to teke adventwe of the povera granted br ArtIalo 

### 6548endArticle 

### 6548a.~ the oorporatlon baa filed an application for en amendment chenging its purpose alauae to Inolude thoa,epowers. It vi11 be noted twt those ArtIalea 8pp4 to ~orporatlona vhIch vere **formed**as **street** rellvey aorporatlona end vlah nov **to** operate buses **in plaoe**  **of** street cars. Thestreet railvay nubdIvIaIon Is Ho. 

### 67 of Article 

### 1302,end it Is the aontention of this Departmeqt that Artlalea 

### 6548&xl 

### 654thapply only to corporations formedunder that subdIvIsIon. If auah Is tlae ?aae, the oorporatlon **uould** not aaacmpllah thla ahange by en ~endatent becauao of the prohIbItIona In the last l entenoe of Artlale 1314.

“Theattorneys for the corpomtlon, hovever, contends that since they have been opereting a altyBonorable Vllliem J. Lavaon, Page 2

bualineuaderSubdIvIsIon66, that theyareaot &enging the purpose OSthe corporation by adopting the enlarged povera granted underArtfolsa 6548and6548a.
“This Departmenthas been of the opinion that SubdIvIsIon 66vaa tha aorreot aubdlvltlon to be used by bus lines &wn.n¶.ng Sromone city to imther and that it did not authorize. the operation of a city bus line. It Is easy to see that a court could say that an lntercity bus line vaa similar to, end authorlted by, the line OSstages au~vlsion, but the almIlarIty Is not so great betveen a 1Ine of stages end the operation of city buses.
"Weshould like an opinion Srw your Department on the Sollowlng questions:

**3** clt~ka Does a corporation have a right to operata

line **un&s?** Subdivision 66 of Article 13025

“2. IS ~ubdlvlalon 66 la not tha proper subdlvlsion, under vhat subdivision should a corporation vlahlng to operate a bus line in **a** city be **formed?**

‘3. IS SubdIvIaIon 66 Is the **proper** aubdIvIaIon, nay such a aorporatlon have the enlarged **pavers** granted by Artlalea 6548end~6548s~. either by eraendment **or** as en iouldental pover to their right to operate a city bus line?"
Thepertinent facts relatlvo to the WlchIta Traatlon Company

are set out In a letter firmHonoraBle Bennett L. Smith, Attorney **at Lav,**  **addressed** to the Attorney General, **bearing** date September 19, 1941, **are as**  Sollova~ ;.

"WlchIte Traotloa Company,a Texas aorporatlon, ovnedend operated a street rellvay systemIn Wichita

/ Pilla MU.1 Its aharter expired under Its ovn terms Zn

August, 1934. Prior to th&t tbue, the&arter of UlchIU Traction Company

vaa amendedto pennit t* substitutionHonorable UIlllam J. 

### Lavaon,Pego 

### 3

of huesa in compliance vlth Articles 

### 6548an4 65M.s. 'Aher,the charter expired In 1934, Wichita Traction Ccnpanyvaa not then operating azxystreet rallvays but vaa entirely operating motorbuses ln and about the City of Ulahlta Falls. %hortly after the expiration of the 

### oharter of Wichi’ta Traction Company 

### a nev corporation

vaa formed, the Wichita Trenalt Corporation, under 3ubdivision 

### 66 of Actlole 1302, vhich Corporetlon acquired the motorbuses andsystemformerly 

### operated byWichitaTractionCompany. Thenev Companytcok over .ZX&

operated the identical operationa maI&aln 

### sdby 'iha predecessor. Wichita Transit Corporation -hassince been engaged in the buaIne8s of operating buses fop the carriage of passengers for hire vithln the City of Wichita Falls. During part **or** +A1 of t!xt tL!e, the Corporation has operated buws outaide ;f t!x City llsita R& tit.0 the suburbs..
"TheCorporation nov desires to amendits charter by changing its purpose clause Sromthat wntain**ed** in 3~bdIvlslon 66 in Article 

### 1302~to3ubdIvIsIon &'4efeoS, aa suppleaientedby Articles 

### 6548 **and**

**.** 3ubdlvlslons 

### 66 end 

### 67 oS.Artlole 1302, Vernon's Annotated Civil Statutes, read as Sollovsi



### "66. To eatabllah endnalntaIn a line of
atage8.


### "67. To conatruator aoqulre 

### vlthpaver to maintain 

### and operete, 

### atxwet'rallvaya end suburben rallvsys andbelt llnaa of rellvaya vlthIn and

### near cities 

### andtovna, for the transportation of freight andpassengers, vlth paver 

### alsoto conatruat, ovn and operate union depots, end to **bw,** CM, sell end conveyright of 

### vay uponvhIch to eonstruat 

### raIlroada.'
Thelast sentence of Article 

### 1314,Vemonta Annotated Civil Statutes, reads as Sollova:Honorable YlllIc~n J. LavaOn, Page 4

“ho amendmentor change vIolatlve of the Constitution or lavs of this State or any provision of this title Or ;rhich SC changes tho original purpose ot such corporation as to prevent the execution. thereof, shall be of any fcrca or effect.”
Article 65&e, Vernon’s Annotated C.&v11Statutes, provides In effect that any corpporation authorized to operate a street or a suburban rallvay or Interurban rallvay **and** to carry gaaaen;srs for hire, Is suthorlsed, subject In every case to the approval and consent of the Governing body of the city or town where said street, suburban or Interurban railway company is operated to substitute for such rallvay automobile motor bus llnea, In vhole or in ?art, and to maintain and operate motor buses for the purpose of carrying pnaaeqera for hire on the public roads, streets, plaxs, allOTs, and hii;hvaya vIthin the corporate limits.
**Of** anv incorlxratcd cltlea or towns, tender such resulationa as * zqv- Ye :~eocl;lbcd ‘-:y ~7 cuch cities or towns, and on the public roach --ridhi:rtwsys vith’a five miloa Of the corporate l*Qnlts of anj- such incO2~0r;ited citlea or tOvn3, -under~suchregulaslona, in territory outside of cltjr llmita, ns the COmmisa~onora’ Court of tho county nay 2roscrlbo; snd such substitutidn of motor buses for street car8 and street or Interurban rallvey and the dlacontinullnco of such atroet or interurban rnilvaya shall not In any vay Im=aIr any of the corporate powers of corporations heretofore Incorporated as street 0r lnterurbsn rsllvaya with respect to the o-peratlon.oS other public utilities authorized by their charters and by statutes nov In Force.

ArtFcle 65&h, Vernon’s AnnOtated Civil Statutes, among other things, In effect, provides that grivnte corporationa heretofore kxor&Jorated Sor the purpose of operating street or ,interurban rsilvaya, vhIch said private corporstlons have totally abandoned such operations prior to January 1, 1934, may emend. their charters so a8 to include as a sopsrate purpose of the corporat fOnthe acqulrIug, ovnins and operating of motor vehlclea end motor buaes for transportation of passengers for hire upon the ~~jlic streets and -,ublfc vaya of cltlea and towns end u>on the public ways of the adjacent unlncor?orated territory vlthin five miles frOm the limita of such cities and tovna, provided, hov-. ever, this limit shall not be construed to prohibit any corporationHonorable Wllllapl 3. Lawson, Pago,5

.y..,: 2, coafomily vlth thi6 act from contractillg~for chartered pag**a8ILger acrvvice**  beyond said five mile Xi&nit,under suah reasonable re,Yations as maybe legally Unposedfrom t-e to tl,m by such cities and tovnr vlthfn the limit8 **thereof** a& the Cmmlsuionera' Court of counties as mu presaribed by Article 

### 6548.

**The** Wichita Traction **C~snpany** vaa a&arently Orgadz8d for the purpose8 set out ln Subdivialon 

### 67 of Artlole 1302and had smendedits charter to cqnplianoe vlth Articles 

### 65 p"malt the substitution of busea in 

### 8 and 

### 654&, but its charter expired and **V8S** not r8neved. Thesubject corporation, Wichita Tranalt corporatbn, **V8a** orgaxilsed a8 a nev 

### oorporationunder subdlvlslon 66, with its purpose clause readings "To operate a line of stagea," and although thlr corporation 8cQuired all the property of the Wichita Traction Cm-, vhlch at that time vas .operatlng only **bUSBS,** the povera of Wichita Transit Corporation **and** the propriety of the charter ammdment vhLchhaas

been submitted mastbe tested bp the charter of the present corporation snd the lava ap- ?licable thereto, and not the charter and lavs applicable to the expired Wichita Traction Company.

**Uhile** there appear8 to be no aubdlvi~ion~of Artlole 

### 1302vhlch expre88lj m6ntlozisthe oper*tlon of bun liner .betveen clticts, lt would seemthat the State Department'8 construction of Subdlvlaion 66 88 lncludlng the ~operatlon of titer-city bu8 lines 18 correat. It does not follov however that this excludes the operation of a line of stager **or** buses vithln cities. In this conneotion ve refer to the caue of staacke v. Routledge (sup. Ct. 1922) 241s. w. 944, vhlah involved the burlnesrr of renting automobile8 with driver8 ln the olty of SanAntonlo under subdiviafon 

### 64. The court in ltr opinion. stated:

"Subdlvlrlon 10 of Article 1121 (nov Subd. 66 of Art. 

### 1302),outho~laiag the areatlon of **oorpora** tioits for the eatablis lines **and** Subdlvirion 18 -t andmainteW!UiCe Of Stage nov subd. 69) of,the same Article, petittlng the fOi3BStiOnOf COrpOratiOna for the transportation of **goods, vares,**  **and merchan**  dlae, or any valuable th%ng, 1s aaah olearly broad enoughto have permitted the fonn.stlon of **8** aorporation for th8 tranaportatlon of paa8sngers for hire, or to engage in the bue%nesavbich defendant in error alleges uas the bualnesa Polloved by the Rambler Automobile Company."

### HonorableWilliamJ. Lavaon,Page6

.‘.>~. If the court vaa correct ln Its exprssalon with reference to Subdlviaion 

### 66 in that case, weknowof no resaon vhp t-8 Subdivision wouldnot b8 auff$clantly brasd to permit-the **OperatiOn** Of **a 1bl8**  Of **Stage5** or buses within aa well aa betv88n
**Cit.185** 

### end tovIm. This ststement by th8 court yaq probably not necessary to the deciaicn of the case but It does furnIah a guide in construing the statute. ;

Although there maybe other Subdlvlslona 3nArticle 1302whichvould be mor8appropriate for the operation of city bus lines, e metter vhioh ve do not nw determine, 

### It 1s our opinion that it Is sufficiently broad to include the orwation in question.

Under the pwaent charter of the 

### WichitaTransitCompany 'it nay therefore operate bus lines or stages vIthIn cities or tovra endbetween cities or tovm without any llzltatlon 3poa the distance which it may operate 

### Ita bun llnes from the corporate 1inita Ff cities. Subdlvlaion 57authorizes the operation of stzwzt ?~sllvqa and suburban rsllveys vlthln endnear cities and ~tovns. 3y -m+.ue of Articles 

### 6548 and 

### 65488,Vernon's Texas Civil Statutes, street railway corporations m&yextend their charter powers so as to substitute **motor** burr68for their reilvaya vlthin the corporate limits of cities and tovna end on the pub110high**ways**vlthln five miles of the aorporate limlta of such cities or

/ tovnq. Wouldthe proposed amen&iient so change the original purpose of **the** corporation **85** to prevent.the execution thereof? 

### We think It vould. Under the orIgiPa1 charter the corporation Is authorized to operate 

### both interend Intraaitybuses **or atage**  

### llneabut by the proposed amendment It voul$ only be authorized to operate bus lines vlthln Inaorporeted altlea end within five **miles** thereof. That 

### the corporationhas 

### been operatingbuses solely vlthln the city of Wichita Fella end its suburba ir not aontrolling 

### for thechartereetaOut thepUFpOB8 **Of** 

### it8 tiCOFporetlon andwemustlook to that lnstruawnt end applicable lava to determine its orIgina purpose.

There 

### la **another reason**  this emendment mei not be made. ~otvlthatltaadlngboth Subd.lvialona 66 and 

### 67 deal with tranworta- / tion, they contain radioal
, substantial and fundamental dlffer8ncea. Rot only does the 

### paverto operate **8** line of stages tietOrIelly

### BonorabloWIlliaau J. Lavaon,Page 7

differ, as a m8tter of fast, frar the,pover to aonatruot and operate street, 

### suburbanpnd

### belt line **rallvaya** snd to bug’
, ovn,



### ~~sell 

### and conveyright-of-v8y, but the statute itself h8e amde the diatinatlon endve o8nnot **say** that theed purposee **are** fund8- mentally the some. Whenthe Saaorporatore qf the YIahlt.8 Tr8rb 

### sitUompuiyoh086the purpose OS

### the aorpora$lontheyno doubt **aonaldered** the diSf8reme **b6tVOti** the.operatlon **of 8**  line of stages and the operation of street r8llvaya under Su@livIslon 67 with the enUrged pavers granted by Articl8 6548and 65488, 8&i h8d samere8qn **for** Inaorpor8tIng 

### for the eeleoted purpose rather than85 **8** et~etr8Ilv8y amp8ny. If would seemapparent that a **person** atibaorlbing to the oapltsl etook of 8 corporation h8vlng **88** lta purpose the operation of a line of stages vould not contemplate thet euah aoFpor8tlon **vo$ld oomtruat,**  amlntain ind operate rsllwaye. Theproposed 

### smendmetit beinga fundamental andmateriti &tnge in the purpose of the corporation, It should

- not be p8ltiIilh3d. 10T. J. p. 

### 664;FletOh8r’B Cyclopedia Corporations, Vol. 7, p. 7607.

Without qtlotlng in full Articles 

### 6548and 6548a,Vernon’s Texas Civil Stat&en, ve think it 1s aufflclent to point tit that the firat mentioned statute by Its expreaa l8ngu8ge does **not apply**  to the corporation In question for it appllee.only 

### to .“Anyoorporatlon 

### authortiedto oper8te a street 01p auburb8a rallway or interurban mllv8y 8nd to c8rry passengers for hire l l 

### l.” Th8t.the 

### Aot is lirnlted In ita application to street snd Interurbep railvaya 

### Isborne out by the title and emergenoy al8uae of 

### z;a6;gg3* 43d Leg.,p. 

### 48, oh. 22, vhloh amendedoriginal 

### Artl-

.The same-oonelderatlonr an applicable to Article’ 

### 65488. That statute provides, “That prlve$ aorporatlona heretofore lnaor?poratedfor **the purpose**  of **operating** street **or** Intmurb8n rallv8ya” mayem& their ah8rtera so as to provide as 8 eepar8te purpose for the operatlond motor bwee. See 

### alsothe title 8nd emergenay

### almae of Aata 1937, 45th Leg., p. 

### 675,oh. 

### 337. Clearly 

### thesestatutesdo n& 8pply to aarporatlona organlted under 3ubdlviaIon 66.

Tour first question 1s enrverad In the affim8tlve and the second does not require 821 8nsver.

### HonorableWllilamJ. Lawson, **Page**8

In **snaver** to your third question, it 

### la our oplnldn a corporutlon having as its purpose Subdlvlalon 66 of ArtiCl8 

### 1302,RevisedCivilStatutes,1925, maynot emendits charter so au to change its purpose to that set out In SubdIviaIon 67 

### of saidArtlcle‘aaenlarged by Artlclea 6548;and6548a, 

### Vernon's Texas Civil Statutes, .snd~that the lset~ two&entioned 

### statutes are not applicable to end do not affeat 

### the corporatepovere 

### of aorporatloneorganized xmderSubdivision 66 of Article 1302, Revised 

### CivilStatutes, 1925.
Yours very truly

CCC:eJ