VERNON'S TEXAS CIVIL STATUTES
CHAPTER 9. COLLECTION OF DEBTS AND RIGHTS OF EMPLOYES
Art. 6420. [6619] [4543] [4259] Subject to execution
The rolling stock and all other movable property belonging to any
railroad company or corporation shall be considered personal
property. Its real and personal property or any part thereof shall
be liable to execution and sale in the same manner as the property
of individuals, and no such property shall be exempt from execution
and sale.
Const. art. 10, sec. 4.
Art. 6421. [6624] [4549] [4260] Road sold for debts
In case of the sale of the property and franchises of a railroad
company, whether by virtue of an execution, order of sale, deed of
trust, or any other power, or by a receiver acting under judgment
heretofore or to be hereafter rendered by any court of competent
jurisdiction, the purchaser or purchasers at such sale, and
associates, if any, shall acquire full title to such property and
franchises, with full power to maintain and operate the railroad
and other property incident to it, under the restrictions imposed
by law; provided, that said purchaser or purchasers, and
associates, if any, shall not be deemed to be the owners of the
charter of the railroad company and corporations under the same,
nor vested with the powers, rights, privileges and benefits of such
charter ownership as if they were the original corporators of said
company, unless the purchaser or purchasers, and associates, if
any, shall agree to take and hold said property and franchises
charged with and subject to the payment of all subsisting
liabilities and claims for death and for personal injuries
sustained in the operation of the railroad by the company, and by
any receiver thereof, and for loss of and damage to property
sustained in the operation of the railroad by the company and by any
receiver thereof, and for the current expenses of such operation,
including labor, supplies and repairs; provided that all such
subsisting claims and liabilities shall have accrued within two
years prior to the beginning of the receivership resulting in the
sale of said property and franchises or within two years prior to
the sale, if said property and franchises be sold otherwise than
under receivership proceedings, unless suit was pending on such
claims and liabilities when the receiver was appointed or when the
sale was made, in which event claims and liabilities on which suits
were so pending shall be protected hereby as though accruing within
the two years; such agreement to be evidenced by a written
instrument signed and acknowledged by said purchaser or purchasers
and associates, if any, and filed in the office of the Secretary of
State. Such charter, together with the powers, rights and
privileges and benefits thereof, shall pass to said purchaser or
purchasers and associates, if any, subject to the provisions and
limitations imposed and to be imposed by law. The amount of stock
and bonds which may be held against said property and franchises,
after the sale thereof, as well as the manner of issuance of such
stock and bonds shall be fixed, determined and regulated by the
Railroad Commission of Texas at its discretion save that the total
incumbrance secured by the lien on said property and franchises
shall not exceed the amount allowed by Article 6521.
Acts 1910, 4th C.S. p. 120.
Art. 6422. [6625] [4550] New corporation, how formed
In case of a sale of the property and franchises of a railroad
company within this State the purchaser or purchasers thereof and
associates, if any, may form a corporation under the first chapter
of this title, for the purpose of acquiring, owning, maintaining
and operating the road so purchased, as if such road were the road
intended to be constructed by the corporation; and, when such
charter has been filed, the new corporation shall have the powers
and privileges then conferred by the laws of this State upon
chartered railroads, including the power to construct and extend.
The property and franchises so purchased shall be charged with and
subject to the payment of all subsisting liabilities and claims for
death and personal injuries sustained in the operation of the
railroad by the sold out company and by any receiver thereof and for
loss of and damage to the property sustained in the operation of the
railroad by the sold out company and by any receiver thereof and for
the current expenses of such operation including labor, supplies
and repairs, provided that all such subsisting claims and
liabilities shall have accrued within two years prior to the
beginning of the receivership resulting in the sale of such
property and franchises, or within two years prior to the sale, if
said property and franchises be sold otherwise than under
receivership proceedings, unless suit was pending on such claims
and liabilities when the receiver was appointed, or when the sale
was made; in which event claims and liabilities on which suits were
so pending shall be protected hereby as though accruing within two
years; and provided, that by such purchase and organization no
right shall be acquired in conflict with the present Constitution
and laws, in any respect, nor shall the main track of any railroad
once constructed and operated be abandoned or moved. The amount of
stock and bonds which may be issued by said new corporation, as well
as the manner of their issuance, shall be fixed, determined and
regulated by the Railroad Commission of Texas at its discretion,
save that the total encumbrance secured by lien on said property and
franchises shall not exceed the amount allowed by Article 6521 of
the Revised Statutes of Texas. This and the preceding article shall
not be construed to in anywise repeal or impair the provisions of
Chapter 12 of this Title except in so far as the same may be changed
thereby.
Acts 1889, p. 19; Acts 4th C.S. 1910, p. 120; G.L. vol. 9, p. 1047.
Art. 6423. [6626] [4551] Jurisdiction
No railway company availing itself of any of the privileges herein
provided shall claim to be under the jurisdiction of the Federal
courts by reason thereof; and any railway company which may avail
itself of the said privileges which shall claim to be subject to the
jurisdiction of the Federal courts in pursuance of this article
shall ipso facto forfeit its reorganization and be remanded to the
same condition as it was prior to said reorganization.
Acts 1889, p. 19; Acts 4th C.S. 1910, p. 120; G.L. vol. 9, p. 1047.
Art. 6424. [6627] [4552] [4261] Sale under deed of trust
Whenever a sale of the roadbed, track, franchise and chartered
rights and privileges of any railroad company is made by virtue of
any deed of trust or power, the same shall be made at the time and
place mentioned in the deed of trust or power and in accordance with
the provisions of the same as to notice, and in other respects; and
if the same be not specified, such sale shall be made as hereinafter
provided for sales under execution or order of sale.
P.D. 4913. Amended by Acts 1927, 40th Leg., p. 73, ch. 48, Sec. 1,
eff. Feb. 21, 1927.
Art. 6425. [6628] [4553] [4262] Judgment, execution, etc.
Whenever judgment is rendered against any railroad company,
execution shall issue thereon and be levied and collected as in
other civil causes, except that when the roadbed, track, franchise
and chartered powers and privileges of said railroad company is
levied upon, the levy and sale must take place in the county where
the principal office of such company is situated, and the entire
roadbed, track, franchise and chartered powers and privileges of
such company shall be levied upon and sold. The provisions of this
article shall be observed so far as they are applicable in all cases
where, by any decree of a competent court, a sale of the roadbed,
track, franchise and chartered powers and privileges of any
railroad company is directed to be made.
P.D. 4914.
Art. 6426. [6629] [4554] [4263] Unpaid stock subscriptions
The sale of the roadbed, track, franchise and chartered rights, as
herein provided, shall not be held to pass or convey to the
purchaser any right or claim to recover from the former
stockholders of said company any sums which may remain due upon
their subscriptions of stock, but the said stockholders shall
continue liable to pay the same in discharge and liquidation of the
debts due by the sold out company, as hereinafter provided.
P.D. 4915.
Art. 6427. [6630] [4555] [4264] Old directors to be trustees
Whenever a sale of the roadbed, track, franchise and chartered
powers and privileges is made as hereinbefore provided (unless
other persons shall be appointed by the legislature or by some court
of competent authority), the directors or managers of the sold out
company at the time of the sale, by whatever name they may be known
in law, shall be trustees of the creditors and stockholders of the
sold out company, and shall have full power to settle the affairs of
the sold out company, collect and pay outstanding debts, and divide
among the stockholders the money and other property that shall
remain after the payment of the debts and other necessary expenses;
and the persons so constituted trustees shall have authority to sue
by the name of the trustees of such sold out company, and may be sued
as such, and shall be jointly and severally responsible to all
creditors and stockholders of such company, to the extent of its
property and effects that shall come to their hands.
P.D. 4916.
Art. 6428. [6631] [4556] [4265] Suits not to abate
No suit pending for or against any railroad company at the time that
the sale may be made of its roadbed, track, franchise and chartered
privileges shall abate, but the same shall be continued in the name
of the trustees of the sold out company.
P. D. 4916.
Art. 6429. [6632] [4557] [4266] Law not to apply to State loans,
etc.
The provisions of this law shall not apply to any debt, execution or
deed of trust held by the State against any railroad company because
of any loan made by the State to any company under the provisions of
the Act to provide for the investment of the special school fund, or
any other law which authorizes the loan of money to railroad
companies, nor shall any creditor of any railroad company be
allowed to make the State a party to any suit brought for the
enforcement of any debt, mortgage or deed of trust or lien on any
railroad, or permitted to require the State to foreclose any lien
which it may have had upon any road, but the lien of the State and
its right to enforce the same shall continue as if this law had
never been passed, and as if no sale had been made under the
provisions of the same.
P.D. 4917.
Art. 6430. [6620-1-2] Reducing wages
All persons in the employment of such railway company shall receive
thirty full days notice from said company immediately prior to the
day upon which a reduction is to take effect before their wages
shall be reduced. In all cases of reduction the employe shall be
entitled to receive from such company wages at his contract price
for the full term of thirty days after such notice is given. Said
notice may be given by posting written or printed handbills,
specifying the parties whose wages are to be reduced and the amount
of such reduction, in at least three conspicuous places in or about
each shop, section house, station, depot, train or other place
where said employes are at work; provided, such employe shall,
within fifteen days from the date of such notice, inform such
railway company, by posting like notices as given by such railway
company, whether or not he will accept such reduction; and, if no
such information is given such company by such employe, then such
employe shall forfeit his right to such notice and such reduction
shall take effect from the date of such notice, instead of at the
expiration of thirty days. Any railway company violating or
evading any provision of this article shall pay to each employe
affected thereby one month's extra wages.
Acts 1887, p. 20; G.L. vol. 9, p. 818.
Art. 6431. [6623] [4547] Discharged employe
When a railroad company shall discharge an employe, or when the time
of service of such employe shall expire, or when a railroad company
shall be due and owing an employe, such railroad company, upon
discharge, or upon the termination of the term of such service, or
upon maturity of said indebtedness, shall, within fifteen days
after the demand therefor upon the nearest station agent of said
railroad company, pay to such employe the full amount due and owing
him. If said railroad company fails or refuses to pay such employe,
then it shall be liable to pay to such employe twenty per cent on the
amount due him, as damages, in addition to the amount so due, in no
case the damages to be less than five nor more than one hundred
dollars.
Acts 1887, p. 72; G.L. vol. 9, p. 870.
