Source: https://supreme.justia.com/cases/federal/us/265/298/
Timestamp: 2019-04-25 14:13:41+00:00

Document:
Justia › US Law › US Case Law › US Supreme Court › Volume 265 › Missouri v. Kansas Gas Co.
1. The business of piping natural gas from one state to another and selling it not to consumers, but to independent distributing companies which sell it locally to the consumers is interstate commerce free from state interference. Pennsylvania Gas Co. v. Public Service Comm'n, 252 U. S. 23, distinguished. P. 265 U. S. 307.
2. An attempt of a state to fix the rates chargeable in this interstate business is a direct burden on interstate commerce, even in the absence of any regulation of it by Congress. P. 265 U. S. 308.
282 F. 341 (No. 155) affirmed.
111 Kans. 809 (No. 133) reversed.
282 F. 680 (No. 137) affirmed.
its rates in Missouri without the consent of the Public Utilities Commission of that state. The decree of the district court refusing the injunction is here affirmed.
In the second case, the Kansas Supreme Court allowed a peremptory mandamus to compel the same company to reestablish and maintain certain rates in Kansas until otherwise ordered by the Utilities Commission of that state. Reversed.
The third case was a suit in the federal court in Kansas to enjoin collection by the same company of increased rates in Kansas until allowed by the Kansas Utilities Commission. The injunction was denied. Affirmed.
These cases were consolidated for argument. They present for decision the single question whether the business of the Kansas Natural Gas Company, hereinafter called the Supply Company, consisting of the transportation of natural gas from one state to another for sale, and its sale and delivery, to distributing companies, is interstate commerce, free from state interference?
The Supply Company is a Delaware corporation, engaged in producing and buying natural gas, mostly in Oklahoma but some in Kansas, and, by means of pipelines, transporting it into Kansas and from Kansas into the state of Missouri, and in each state selling and delivering it to distributing companies which then sell and deliver it to local consumers in numerous communities in Kansas and Missouri. The gas originating in Kansas is mingled for transportation in the same lines with that originating in Oklahoma. The pipelines are continuous from the wells to the place of delivery.
the commerce clause of the Constitution, is not subject to state control.
In No. 155, appellants brought suit in the federal district court to enjoin the Supply Company from increasing its rates. The injunction prayed was denied. 282 F. 341.
In No. 133, the defendants in error filed a petition in the Kansas Supreme Court for a writ of mandamus to compel the Supply Company to reestablish and maintain the rate of 35 cents per 1,000 cubic feet for gas furnished to the distributing companies, until otherwise ordered by the Utilities Commission. The case was presented to that court on demurrer to the return and answer. The demurrer was sustained, and a peremptory writ of mandamus allowed, as prayed, 111 Kan. 809.
In No. 137, the suit was to enjoin the Supply Company from collecting or attempting to collect the increased rates from various gas distributing companies until the consent thereto of the Utilities Commission of the state should be secured. The federal district court denied the injunction, but retained the bill for another purpose not necessary to be stated. Central Trust Co. of New York v. Consumers' Light, Heat & Power Co., 282 F. 680.
court conceded that the business was interstate and subject to federal control, but rested its decision the other way upon the fact that Congress had not acted in the matter and that, in the absence of such action, it was within the regulating power of the state.
"That the transportation of gas through pipelines from one state to another is interstate commerce may not be doubted; also it is clear that, as part of such commerce, the receivers might sell and deliver gas so transported to local distributing companies free from unreasonable interference by the state."
See Pennsylvania v. West Virginia, 262 U. S. 553, 262 U. S. 596, and cases there cited.
that which, in the absence of federal regulation, should be free."
The question is so fully discussed in that case that nothing beyond its citation is required.
"The pipes which reach the customers served are supplied with gas directly from the main of the company which brings it into the state; nevertheless, the service rendered is essentially local, and the sale of gas is by the company to local consumers who are reached by the use of the streets of the city in which the pipes are laid, and through which the gas is conducted to factories and residences as it is required for use. The service is similar to that of a local plant furnishing gas to consumers in a city."
The commodity, after reaching the point of distribution in New York, was subdivided and sold at retail. The Landon case, so far as this phase is concerned, differs only in the fact that the process of division and sale to consumers was carried on not by the Supply Company, but by independent distributing companies.
uniformity of regulation. Such uniformity, even though it be the uniformity of governmental nonaction, may be highly necessary to preserve equality of opportunity and treatment among the various communities and states concerned. See, for example, Welton v. Missouri, 91 U. S. 275, 91 U. S. 282; Hall v. De Cuir, 95 U. S. 485, 95 U. S. 490.
That some or all of the distributing companies are operating under state or municipal franchises cannot affect the question. It is enough to say that the Supply Company is not so operating, and is not made a party to these franchises by merely doing business with the franchise holders.

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