The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-06-22
OF the Commission BY Decislon
Of Supreme Court.
the UNCLE SAM IS EXCEPTED
The Constitutionality Of the
Lodge Amendment
To the Hepburn Law Upheld
by the Court.

washington. June Zz.-Ine supreme
court today upheld the pipe line act
Of 1906. placing all interstate oil pipe
lines under interstate commerce COM
mission regulation, a. constitutional
but not applicable to the Uncle Sam
Oil company.
The majority of the court held that
the Uncle Sam company was exempt
from the act because 1t merely carried
oil across one state line for its own
use. The court held all the other
pipe lines were virtually common car
riers in all but name.
| The pipe line amendment to the
Hepburn rate law Of 1906 was the re-
suit OF investigation by the bureau OF
corporations into the affairs Of the
Standard Oil company. When the bu-
reau through President Roosevelt in
formed Congress that the Standards
control of pipe lines in the United
I States was one Of its chief sources Of
power as a monopoly, Senator Lodge
moved to amend the rate law, then
before congress, SO as to place pipe
lines under the regulation Of the in
fterstate commerce commission.
Senator Foraker of Ohio began .
fight against the Lodge amendment.
icontending that 1t would be unconsti-
ltutional unless 1t placed under the
Icommissioa only those lines which
riers.
Amendment rs Passed.
The amendment as finally passed
read:
! THAT the provisions of this act
. shall apply to any corporation or any
; person or persons engaged in the
transportation Of oil or other cun,-
. modify, except water and except rat
ural or artificial gas, by means OF
pipe lines. or partly by pipe lines and
! partly by railroad or partly by pipe
lines and partly by water-who shall
be considered and held to be COM
: mon carriers within the meaning and
purpose Of this act
When the interstate commerce
commission began to enforce the law
: panies to file rates. OF the twenty
eight principal pipe lines in the Unit
ed States, six refused to comply.
Those were the Ohio Oil company,
the Standard Oil company, the Stand
ard Oil Company of Loui.iana. the
Gle Sam Oil company and the Tide
water Pipe Company, Limited. car ~
ing oil from the Appalachian field
covering New York. Pennsylvania
i. tnessee: the fllinois-Indiana- ,hin
e field; the mid-continent field, covering
z Louisiana and Texas.
= Commence Court Injunction.
e The six hostile companies applied t.
: 4he commerce court and it enjoined the
B. n -lforcement of the order, on the
ground that the amendment was un-
= constitutional. The court held that
+ there was not the real and substantial
:. relation between the avowed ob3ecti
. of the legislation and the means de-
:. vised for attaining those objects tc
a make tie law constitutional.
+ Before the supreme court, the gov
= eminent took square issue with the
commerce court about the relation OF
the objects and the means used. The
government insisted that the object OF
the legislation was to make it impOs.
sible to organize another oil monopoly
such as had been struck down by the
. court in the Standard Oil decision II
= 1911. 1t commended that monopoly Of
pipe lines was the root Of total mo-
: nopoly of the oil business, that 1t must
= be eradicated IL a full grown monopoly
: was to be avoided. 1t cOntended con.
:. gress had a right to prohibit corpora.
!. lions carrying oil in interstate com
merce by pipe lines unless they became
common carriers.
The government was not satisfied witt
the suggestion during argument that tn
= law should be construed SO as to appl.
D. only to those companies which hold them
selves out as doing business for the pub
lie, or as common carriers.
:. 1t asserted that all that would be nee
essary in order to make the law MULTI,
then would be for the owner OF the line
! to change their names during the last fev
e miles Of the pipe. creating station o
l teTnInue VI tue CotuiiOH CdITiST out
II the woods, where no small Independent
: would find a market for oil and tn
| terminal company remaining q prfvat
carrier. 1t was pointed out that at pres
I ent the terminus Of the Ohio Oil compan
q line was at a little village Of 100 popula
ton in Pennsylvania; and the Prairie o.
y and Gas company at a similar remot
/ village in Louisiana, named Ida, al So
e licitor General Davis told the court h
~ had heard, was in touching tribute to tn
! biographer Of Standard OIL. Miss IDA Tar
y. bell.