The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1921-12-20
COURT RULING
MGAS MATTER
OFF THE PRESS
Some Interesting Facts
About Recent Decision
Of Highest Court
y cHARLEs BROOKS sMITA

ay4cHARLEs BROOKS SMITH
WASHINGTON, Dec. 90. The
nHnted opinions Of the United
states Supreme court declaring the
crude oil and natural gas tax laws
passed by the special session Of
tie West Virginia Legislature IN
1918 known as the Steptoe laws.
invalid, are off the government
press, rs well as the dissenting
opinion.
The opinion OF the court which
was delivered by Mr.. Justice
H6lmes in both the case OF the
Edrska Pipe Line Co., and the
United Fuel Gas Co. plaintiffs,
against Walter s. HallanGn, State
TAX Commissioner and Z. \. Eng
land, Attorney General Of West
Virginia. Tho opinion OF the court
fs, IN brief. that the laws c in
cohtraveutlon OF the commerce
clause OF the Constitution, an l.
legal interference with interstate
Commerce.
in the Eureka Pipe Line Cos
case, tho court said:
when oil is received from the
producer he receives a credit on
the books OF the plaintiff pipe line,
and thereafter is charged 70. sto".
age as it IS called, the plaintiff
being required by the laws OF West
Virginia to keep enough oil in It's
tanks and pipes to satisfy silch
credits. : {" II the produce:
desires TO deliver oil outside Of the
state It hands the p'pe line com,
pany what is called a tender of
~shtrraents for so many barrels o.
tho specified kind Of oil, naming
tic consignee. and expressed to be
subject to m identified tariff filed
Sdth the interstate Commerce
6n1issfon. This is said to be a joint
thrift in which tho connecting car
ffers share, but they do not share
in tho twenty or thirty cents charS
cd for gathering The oil. Tho argu
mpnt for tina defendants in error
al course is that tho producer IS
free to sell within or without the
state md that the movement OF
gathering having &ken rlace before
any. order is given and while the
producer still can do rs lie likes, u
rnu-t be regarded as intrastatc.
st does not seom to mattr for
thu question before us, whether tho
delivery to tho pine line be regard
ed rs making it tho owner Of whn>
ST receives and n debtor for thu
amounts. as in the case or a bank.
or as akin to those transactions
fGat are held to make the recipient
f-bsllee Of the mingled mass and
tho hailors tenants in common, as
ssems to have heen assumed.
M'hcthar debtor or hailec the pine
limo controls tho movement OF any
speciflc oil in its hands ald thn
batIor assents to It's doing so. Tho
bailor assents to its becoming part
Of n stream that is pouring through
and out OF the state Its only right
IS toJcall on the pipe line to divert
~aaportion of that stream. SO far Is
tho oil that it calls for goes out
OF the STATE with the general cnT
remit It seems to us not 20 he dis.
tilCliShable from the rest admit
tnd to move interstate commerce
No tIailor has title to any sncc'ric
oil. and to deny the character Of
Interstate comerco to tho whole
stream simply because someone
fright have called for a delivery
that probably would have ht"n
madn from IT. In an event that did
rot happen. is going too far. The
charges for gathering cTd storage
RceHts to us not to affect the case.
Tho storage merely means that
enough oil must be kept In the
tanks md pipes to satisfy credits !.
Tho oil runs into a tank on ono
side and out on the other. Thu
tank may be regarded 7s 4 pipe ~
laraer size. Whether tho r'aiHif'
IN error vas Fight or wrong IN
relying upon State law for its
gathering charge It's attitude does
NOT matter hero.
cas- haE saen repeated m0r"
times. interstate commerce is a
prantical conception. and. as re-
lsaTke6 by the court Of frs: in.
stance. c tax to hp Ealid must no,
'ndiS ~pratcifncl eject and o]neratic"
burden fnters'at" commerce It
Sh7fr"s to rs as 4 practical rat.
ter that tho transmission Of this
stream Of OIL was interstate ro'r.
no5rce from the beginning OF rs
flow. md that Il was mono the