OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN
XEly0, 1939
Honorable Tom L. Beauchamp Seoreterpof State hustln, Texas Iher slrr
.
ot you? lottaror Honorable Tom L. Beauchamp, Iday8, 1939, Page 2
more from date of issue. For your oonvenienoe in determining the issue8 at hand, we em here- with handing to you a copy of the offloe memo- randum oonk.aInIngthe signed ruling ot Ssoretarg of State Jane Y. IdcCallumthat suoh gas pipe lines are not publlo~utIlItles. Pteare also herewith enclosingour correspondenoewith this oorporntlon and Its attorneys going Into the faota OS the ease; when you ham oompleteb your research upon this question we would thank you t0 retW& 0~ OOr~BpOnb~00 iii43With thb . oorporation. , "We4would themrore ~apprsolatm.youroolwida&ioJl t%UdOptfd011Upon the iOlhVing ~MstiO~l
'Am we to ola8sIr under eubUirIr$on
*. 00mputed as r0iimii:....~. ..* On'~prll 14, 1930, Jane..Y.MaCallum, then Searotary or state, made the r0ii0wingdspatitmental rulingt aonorable Tom L. Beauchamp, Say 8, 1939, Page 3
"There ar*>numerous deolsions of various courts holding oertain enterprisea to be publio utilltles and t!;oreare several statutory provIsIons deiinlng oertain b&i- neose8 55 pub110 utilities,whloh are in the nature of mere polioe qgulations or whioh have to do with condemnation prooeedfnge of private property for publio us5 or whlah In- volve the validity of a tax to support a pub110 see. Aa pointed out on Page 5S7 of 262 U. S. Reporta, the Legislatarsnay levy a tax ror any purposa In whIoh the State way~aa~. mob pr40tio4iiyoovorath6 ri4id or
*Tide dapartmsnttherotors aUopt8 the qonatmo- tlon *hioh Is saggertetd 3.4the opinion 0r tha ~.i: su~ra4~a;oOurt ot the United State* retorrad to; -that.!~publlo utlllty ooiporatIona*,aa used In Houaa Bill I.#!, lnoluda only those oorporatlona .rhlghara'ln Saot pub110 utility oorporatlona . and angaeemy In bualneaa aa auoh, only Ii thalr aervloa or ratas are aubbjeotto regular .tIon by law, other than for msra purposaa of pOlIoa regulation,wul that any aorporationwhiah oannot olearly astabllsh Itsolr to be withIn thI6 olaaa will be held to oome within Paragtaph (A) as a private bufalneaaoorporatlon. "Ths rollowing olaeaea of oo,rporation .arenot reoognized as publio utiUt+rs:....... "10. Gaa pipe line?. t3aspipe lines, we are \ morcble Tar L. Beauohamp, May 8, 1939, Pace 4
advised. are not common carriers bccauso In practice It Is Imposelble to provide place of storage for gas.- hrtlcles 6050, 6051, 6052, and 6053, R. C. S., 1925, amended, classify the various kind5 of business engaged in oduolog, transporting, Cellvering, and selling natural gas the public for domestic or other use, and deolares eaohto a -gas ut111tp-, 'public utl2.It.y" or %tIIItyw, afieoted th the pub110 Intarest,and aubjeot to the regulationand ntrol'bt the Railroad CommlaaIon. Evarp aaah gas otllltf requ,Jred to keep %aoka, aooounts, papers, reaorda, ti- Ipta, veuohers, and other data nqulrsd by the OamaIaaIon,a an orrlae In Tsxaa. 064 pipe lInea engfiged In produolqg, &Ins, transporting, delivaMng, or othsrwIae daaling~in .taralaa are eaah-daolaredto be a publIa utlllty, a%-. @tad with the pub110 latareat,ax@ In nature and aooardIq I th6 eatablIahedmethod of ooaduotlng same a monopaly,and ,., tblaafin xYmp&Ot