Evening star., 1935-11-05

by the Columbia Gas and Electric Cor
poration and the Standard Oil Co. of
New Jersey. Four lines are jointly
owned by these two companies ex-
tending from the Appalachian field
to cities along the Eastern Seaboard
and in addition to compact network of
gas lines Is operated in Western Penn
sylvanis, West Virginia and Northern
Kentucky with line from this area
affecting q connection with the line
operated from the Texas panhandle
gas field by the Panhandle Eastern
Pipe Line Co.
THAT transportation Of gas through
pipe lines from one State to another
Is interstate commerce coming under
the regulation of Congress is clearly
settled in many decisions of the United
States Supreme Court.
1T is possible that the reason Con-
gress specifically exempted gas pipe
lines from regulation as common car
riers was that they were not OF suffl-
cient importance at the time to re-
quire regulation. The growth of III
period ls21-31, and the increase of gas
pine line transportation facilities to
$4,000 miles, more than so per cent of
which is under the mastery Of four
large corporations purchasing as we'll
as producing natural gas, present q
situation somewhat similar to that
which preceded passage of the Hep
burn act as set forth in the pipe line
cases, 234 U. s., 548.'
Points to Local Situation.
The II companies that control the
gas field, according to the report of
the Federal Trade Commission, are as
follows: The American Power and
Light Co., Columbia Gas and Electric
Corporation, Cities Service Co. and
the Electric Power and Light Corpora
ton. Lone Star Gas Co, Minnesota
Northern Power Co, Middle West Utili-
ties Co., North American Light and
Power Co. and Southwestern Develop
ment Co., Standard Oil Co. of New
Jersey and Tri- Utilities Corporation,
May I be pardoned to point to a
local situation? West Virginia, my
home State, produced much natural
gas. Across our boundaries, We export
between 80 to "a per cent of the en-
tire amount produced. The Standard
Oil Co. of New Jersey and the Colum-
bia Gas and Electric Co. have complete
domination. There Is developing and
has been developing huge monopoly
that is taking away the God-given re-
source from the earth for the profits
OF only a few. Most Of those few are
the absentee landlords who do not live
where the gas is produced. Senator
Couzens of Michigan introduced a
resolution in the Senate Of the United
States in the last session in which it
was asked that the Committee on In
terstate Commerce obtain information
relative to the production. transmits
sion, sale and distribution of natural
gas. We have. and properly so, brought
to the attention Of the public the huge
power octopus that invades most of the
American homes, but let us not over
look the very rapid development Of an
other public utility combine, the
natural gas group. Many people feel
that the industry is local in its nature.
That was so a few years ago, but to-
day it is a Federal problem. 1t has
risen to a place where it has enough
power to defy and to evade State regu-
latory bodies. For years gas COM
panies appeared before the courts say
ing that State regulation interfered
with interstate commerce. Between
1891 and 1884 there were % cases car
ried to the Federal courts from In
diana. New Jersey, Oklahoma. Kansas,
New York. West Virginia. Pennsyl-
vania, Alabama, Wyoming, Ohio. Mis-
sissippi, Texas and Colorado on this
ground. The interstate commerce de-
cisions rendered forestalled much State
regulation and conservation.
Declares Company Dodging.
A few years ago the Legislature OF
my State passed bill to place tax
upon gas being exported beyond the
boundary. 1t was carried to the Su-
preme Court Of the United States, and
there 1t was decided that the law inter-
fered with interstate commerce. Now
these same interests, this same group,
this same company is trying to dodge
Federal regulation by calling for State
rights and State regulation It is a
joint problem. Where the State does
not and cannot regulate, it should be
the problem and responsibility Of the
Federal Government to step in. The
Federal Trade Commission, under the
very able counsel of Col. Chantland,
will bring much information to the
people Of the United States about the
natural-gas industry.
We have heard a whole lot, not too
much, about the National Electric
Light Association and about the Edi-
son Electric Institute, but what the
N. z. L. A. Is to the electrical industry,
the A. G. A., the American Gas Asso-
citation. Is to the gas industry. These
utilities, controlled through the IL
powerful holding companies mentioned
earlier, contributed materially to the
public utilities information bureaus of
the different States and gave much for
propaganda in behalf Of the utilities.
speak from personal knowledge
when say that know of no group,
not even the power trust, that is more
active in politics than those who con-
troll the gas industry. They interest
themselves in all elections, municipal,
State and congressional. They try to