Article X of The Texas Constitution - Requirement For A Texas Office

Requirement For A Texas Office

The legislature decided in 1853 that all railroads operating in Texas should be headquartered in the state, and that was included in the 1876 constitution as section 3 of Article X. When outside companies began acquiring control of Texas railroads in the 1880s, they were required to retain the Texas corporations. Since only Texas companies could operate in the state, the outside companies could not lease the Texas companies, as decided by the courts in an 1888 lawsuit brought by Attorney General James S. Hogg against the railroads controlled by Jay Gould (International and Great Northern Railroad, Missouri, Kansas and Texas Railway, and Texas and Pacific Railway, all leased to the Missouri Pacific Railroad).

These separate Texas companies sometimes took the name of the parent, but often retained their original names. Systems that entered Texas and their local companies included:

  • Atchison, Topeka and Santa Fe Railway: Gulf, Colorado and Santa Fe Railway, Panhandle and Santa Fe Railway
  • Chicago, Rock Island and Pacific Railway: Chicago, Rock Island and Gulf Railway
  • Colorado and Southern Railway: Fort Worth and Denver City Railway
  • El Paso and Southwestern Company: El Paso and Southwestern Railroad of Texas
  • Kansas City, Mexico and Orient Railroad: Kansas City, Mexico and Orient Railway of Texas
  • Kansas City Southern Railway: Texarkana and Fort Smith Railway
  • Louisiana Railway and Navigation Company: Louisiana Railway and Navigation Company of Texas
  • Louisiana and Arkansas Railway: Louisiana, Arkansas and Texas Railway
  • Missouri, Kansas and Texas Railway: Missouri, Kansas and Texas Railway of Texas
  • Missouri, Oklahoma and Gulf Railway: Missouri, Oklahoma and Gulf Railway of Texas
  • New Orleans, Texas and Mexico Railroad: Beaumont, Sour Lake and Western Railway, St. Louis, Brownsville and Mexico Railway
  • St. Louis-San Francisco Railway: St. Louis, San Francisco and Texas Railway, Fort Worth and Rio Grande Railway
  • St. Louis Southwestern Railway: St. Louis Southwestern Railway of Texas
  • Southern Pacific Company: Galveston, Harrisburg and San Antonio Railway, Houston East and West Texas Railway, Houston and Texas Central Railroad, Texas and New Orleans Railroad
  • Wichita Falls and Northwestern Railway: Wichita Falls and Northwestern Railway of Texas

The Interstate Commerce Commission approved a lease of the Texarkana and Fort Smith to the Kansas City Southern in 1933. Texas took the case to the Supreme Court but lost, and section 3 was effectively nullified. The Fort Worth and Denver, the last of the Texas subsidiaries, merged into the Burlington Northern Railroad in 1982.

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