The Washington times., 1914-05-24
REGULATION
INSTANCE.

1t is just about eight years since
the Dolliver- Hepburn railroad regu.
lation hill was passed by Congress
The measure became law in the last
hours of June, 1906.
One of the provisions of that act
was that pipe lines, for the con,
Quitting of oil, shogild be common car,
riers, and subject to regulation by
the Interstate Commerce Commits.
sion, just as railroads are.
There was bitter fight against
this provision, and it was urged
among other things that it was in:.
practicable and foolish. How was
ore mans oil to be kept separated
from another's, in a pipe line hun
dreds of miles long? That seemed
to the inexpert almost a conclusive
objection, yet in fact there was ne
real justification at all for it.
The law went into effect. and the
commission made a survey Of the
pipe line business. Then it prepared
a set of regulations. and issued an
order for all the pipe line companies
tG file tariffs of rates for transpor-
tation, exactly as railroads were re-
quired to do.
The corporations owning pipe lines
were ready to fight. They sued out
ar injunction restraining the CON-
mission from exercising its regula-
tory powers. The case went before
the Court of Commerce, after that
bench was created; and in decision
by a majority of the court it sus-
tanned the contention of the pipe line
people.
Appeal was taken to the Supreme
Court of the United States, and last
October the case was submitted. The
interested parties are now waiting
for a decision. II may come any
Monday.
This is regulation. The provision
Of the law has been nominally in eff
feet eight years. 1t has not for one
single day of that time regulated the
business of transporting oil. Con-
ditions in the oil business have great
ly changed in many aspects during
that time. There is more need for
the services of the pipes as common
carriers than there was when the
law passed. But the case is not Gc-
cided. Regulation has had to wait
on the processes Of The courts, as it
always does.
There is big question and a vast
complexi:y % interests involved in
this case. Il is almost inconceivable,
OIL the basis of experience with the
Supreme Courts processes. that a
single decision will be handed down
that will end the whole controversy
and settle the entire set of questions,
once for all, so that the interests
concerned may settle themselves
down to business, knowing just what
they must do ami may not do.
Rather, it is probable that the case
will be determined on some more or
less incidental detail, and that lot
of further litigation will be needed,
with very likely also some new leg
islation, before another step may be
taken in the direction of governing
these carriers.
Meanwhile the oil business is in
the conditions of uncertainty and vex-
alton which is unavoidable while
such a question is in suspense.
That is the whole story of regula-
ton. There is in Washington now
a delegation of Oklahoma oil pro-
ducers, trying to get Congress to
pass legislation for them. They
don't yet even know what the Su-
preme Courts decision will be or
how it will affect them; but they are
~N'N NhoS q iSNI SISP WIZ p!SSVlII-
ly be necessary, along this weary
and unending road of regulation, and
they are educating Congress in the
general necessities of their case,
hoping that the education will serve
it well whenever the time comes for
it to act.
This kind of regulation-and it is
the only kind We have-is what dis
people about the whole reg
ulation business. In a generation or
two it may be possible to get pipe
lines under such rigid and indubit-
able control IF the Governments in
of regulation, that
they will serve the purposes desired.
But an increasing number of people
are firing of such delays, of the in
of it all That is why
of the, Interior Department
ere advocating Government owner
ship of pipe lines; it is why the gov
ernment of the District of Columbia
is in favor of municipal ownership
of public service facilities; it is why
an incroa sin1 nYpahar IF paonlo fo