The Washington times., 1907-12-17
PIPE LINE SUIT
RATE LAW TEST
Owners Will Ask Court to
Determine If Tubes Are
Common Carriers.
Pumping Stationsand Break
ing of Flow Used to Evade
Interstate Feature.

1t is now practically certain that a
great lawsuit viii shortly be set on
or one Of the most important provisions
foot TO determine the constitutionaIity
OF the new Interstate commerce law
that giving the commission power over
pipe lines and making them common
carriers.
The law provides that interstate pipe
liaes for transmission OF oil shall be
common carriers, that the owners shall
prepare and file tariffs Of rates, and
thai they shall be subject to regulation
as TO their rates and methods. just
as other common carriers are.
This feature Of the law was designed
TO take a twist at one Of the most po-
tent tentacles OF the Standard oil Com
pany, but reports at the commission
headquarters indicate that Independents,
quite as much as the Standard inter
ests, are displeased with il, and there
Is general determination not 20 submit
C It until il shall have been tested.
For a long time after the law became
effective few pipe line companies filed
tariffs, ana none of the concerns in
the mid-continent and southwestern
fields have yet done so. III fact. the
Standard concerns have made more
concession tc the measure than the in
dependents.
Pipe Line Inquiry.
Some months ago Commissioner Lane
set about 20 investigate the whole pipe
line situation with a view 20 taking
steps to enforce compliance. Special
inquiry was started TO determine where
the pipe lines are, and what ones have
niad tariffs also 10 learn the circum-
stances and conditions OF the busI-
ness and ascertain whether lJ Is prac-
ticable 70 make pipe lines Common car
riers
There always has been doubt whether
10 is possible 10 pipe the oil OF dir
ferent producers through one pipe, be-
cause Of the differences in quality ana
the necessity Of keeping the pipe FUN
as long IS OH Us moving Beyond TINS
there are legal questions which APP
p2rentiy are going 20 the highest courts
very soon.
Some Of the pipe line owners decline
10 admit that Congress has power Co
make "A common carrier OF that which
IS not a common carrier. was not in
tended 10 be a common carrier, and
does lot exist by virtue Of any grant
OF the right Of eminent domain They
point 20 LIt case OF many com pd1l4e-
which bought their right-Of-Way and
paid for II, secured no grant of spc-
cIol rights other than were involved IN
their ownership or the right 10 lay the
mains. and have never dreamed OF
I handling any but their own oil.
Has Congress Power7
The question is whether Congress has
power 10 make them common carriers.
As has been brought out in litigations.
by the Standard adopted the expedient
of dividing their interstate pipe lines at
State lines. establishing a pumping sta
ton and reservoirs on the State line.
and so recognizing both their corpor-
ate relations and their physical opera
lions as TO put an end 20 such a thing
as An interstate pipe line shipment. This
was, Of course, simply a subJerfuge;
but there IS some uncertainty as TO its
I effectiveness
Then there Is the case of a pipe line
for delivery 20 "A railroads tank cars
10 be shipped 10 a point in another
State. Does this make the pipe line a
part Of ali Interstate trade route. ana.
/ therefore. subject to Federal regulation
or, II oil IS delivered from one point
TO another within a State by pipe line.
and there turned over to tank wagons
for retail delivery into another State.
does that constitute an interstate ar
rangement bringing the pipe line within
the law There are various illustrations
| OF these and other difficult aspects.
which seem 20 require adjudication.