Document: 341 U.S. 329 71 S.Ct. 777 95 L.Ed. 993 PANHANDLE EASTERN PIPE LINE CO.v.MICHIGAN PUBLIC SERVICE COMMISSION et al. No. 486. Argued April 23, 1951. Decided May 14, Mr. Robert P. Patterson, New York City, for appellant. Edmund E. Shepherd, Lansing, Mich., appellee Michigan Public Service Comm. Donald R. Richberg, Washington, D.C., Consolidated Gas Co. Justice MINTON delivered the opinion of Court. 1 This is an appeal from affirmance order Commission requiring appellant to obtain a certificate public convenience and necessity before selling natural gas direct industrial consumers in municipality already served by utility. 2 Appellant engaged transportation pipe line fields Texas, Oklahoma Kansas into areas which include State Michigan. 'natural company' within coverage Natural Act, 52 Stat. 821, 15 U.S.C. § 717 seq., U.S.C.A. subject thereunder regulation Federal Power Commission. Appellee Company utility under appropriate authorization distributes domestic, commercial around Detroit. obtains its entire supply distribution Detroit district 3 In 1945, publicly announced program securing large idnustrial customers sale it offered pay City right lay operate along streets alleys directly customers. October that year succeeded direct-sale contract with Ford Motor at Dearborn plant, located district. was purchasing substantial quantities use plant Consolidated. 4 Believing interests those were prejudiced appellant's program, particularly contract, filed complaint appeared contest jurisdiction over such sales. After hearing, ordered to—'cease desist making sales deliveries industries Michigan, municipalities beng utility, until time as shall have first obtained this perform service.'1 5 injunction against Circuit Court Ingham County, The held prohibition interstate commerce therefore invalid. Supreme three judges dissenting, reversed affirmed Commission's order. 328 Mich. 650, 44 N.W.2d 324. That court rejected argument absolute denial sell consumers. Since free make application sales, construed denying without obtaining certificate. requirement be State's regulatory authority despite character challenges correctness decision. 6 proposed clearly commerce. Panhandle Eastern Pipe Line v. Indiana, 332 507, 513, 68 190, 193, 92 128; Pennsylvania Commission, 252 28, 40 279, 280, 64 434. But local made one 'essentially local' aspect state infringement Commerce Clause Constitution, article 1, 8, cl. 3. absence federal regulation, required interest. supra, page 31, 281, See also Cardozo, J., 225 N.Y. 397, 122 N.E. 260. These principles apply consumption well domestic uses. Panhandle-Indiana, pages 514, 519—520, 196, 128. 7 facts instant case show are primarily They emphasize need wisdom just discussed. To accommodate operations, proposes environs. A operating same area, Consolidated, receives portion Consolidated's revenues derived ignored requests additional meet increased wants Instead attempting needs through launched secure itself accounts customers, some whom being connection Company, noteworthy tap serve would substantially parallel only short distance existing now serves Ford. 8 Thus, not there two utilities using facilities their systems, but they seeking asserts compete cream volume business regard or necessity. Were successful venture, presents situation over-all costs service rates whose source preents concern vital interest 9 Of course, when Congress acts field supreme. It has acted. Section 1(b) provides follows: 10 'The provisions Act commerce, resale ultimate commercial, industrial, any other use, natural-gas companies sale, used production gathering gas.' 11 By occupied part field. As covered. Direct consumptive designedly left regulation. 516—518, 194, Speaking further division gas, said case: 12 'It exceedingly incongruous result if statute so motivated, designed shaped bring about more effective teeth objects, import wording well, cut down power do manner states less capable than statute's adoption. Yet this, effect, what asks us do. For essence position, apart standing on clause, enacting 'occupied field,' i.e., open thus relieved subordination control. 13 exact opposite fact. Congress, true, meticulous take territory had could reach. area did consumer whether Those been regulated repeatedly sustained. no instance reaching stricken down. 14 created articulate legislative based clear recognition respective responsibilities agencies. does contemplate ineffective either level. We emphasized meant create comprehensive scheme, complementary operation usurping authority. * And, pointed out Hope Co., 320 (591) 610, (281) 291 (88 333), 'the primary aim legislation protect exploitation hands companies.' scheme co-operative action between accomplish neither protective nor dual mind, divert will all unregulated uses.' 519, 520—521, 196—197, statutory 'dual regulation' might overlaps conflicts exigencies appear here. There opposing directives hence resolve conflicting claims 16 concedes, must, rate Panhandle-Indiana contends, however, decision comprehend problem, reasoning here asserted prohibit gas. 17 Although end particular require may enter prohibition. intimation cannot deliver available who requirements. discrimination route certificated where saves rule cases Hood & Sons DuMond, 336 525, 69 657, 93 865, relied appellant, discriminated prohibiting because competition. And acted distinguish intrastate agency desiring locality utility.2 Cities Peerless 340 179, 188, 215, 220. 18 follow manage essentially aspects pleases. course Court's decisions recognizes license. case, supra; Such intended, permit prejudice interests. compelled Constitution. 19 Judgment affirmed. 20 FRANKFURTER, DOUGLAS joins, dissenting. 21 seeks Concededly clearest kind controversy Panhandle's desire pipes highways exactions privileges long offend doctrine unconstitutional conditions. asserting wholly different claim. say out-of-State seller permitted distributors says determine market saturated that, since entry distributor disadvantage disrupt market, deny him leave 22 furnishing has, 1938, virtue lodged advised exercised multitudinous instances is, true,' adds 'that authorizing meaningless can necessary facility, vice versa.' If means anything control reasons rely upon withholding Questions conservation, stability, cutthroat competition like relevant factors other. subordinate authority, frustrate granting 23 inference drawn position physical Ford, event prior issuance Howsoever be, placed focus. suggested actual clash assailed vacuum enter. No doubt give States supplanted action. done neither. problem remains law enactment Act. 24 disappear invoking solving phrase, 'regulation, prohibition.' sought put economic autarchy States. she allow without, subject, her implied threadbare phrase must way, incidentally insignificantly touch foreign E.g., Union Brokerage Jensen, 322 202, 967, 88 1227. 25 Constitution each shut products admit them Under belongs Congress. States, pursuit policies, decide cross boundaries condition satisfy policy. matter national policy power, them, liquor, prison-made goods, insurance. Aug. 1890, 26 313, 27 121, 121; July 24, 1935, 49 494; 10, 1939, 53 1391, 1606(a); Mar. 9, 59 34, 1012(b), 1012(b). Against inherent keep except services Buck Kuykendall, 267 307, 45 324, 623, Bush Maloy, 317, 326, 627, seem me decisive. What Brandeis, speaking Court, excepting McReynolds, defines There, here, confronted related passenger freight busses. outright prohibition, system certification duty access community adequately served. 'determines applied resort, officials, test peculiarly province action—the existence adequate conducting provision Washington own highways, Its effect merely burden obstruct it. forbidden Clause.' 316, 623. 28 easy mock minimize significance 'free trade among states', Baldwin G.A.F. Seelig, 294 511, 526, 55 497, 501, 79 1032, given century half adjudication With doubts lessons history teaches, few clearer beneficial consequences flowed conception Clause. true principle, others, principle reduced invoked. Mich.Comp.Laws, 1948, 460.502, provides: 'Sec. 2. hereafter begin construction thereof render purpose transacting carrying directly, indirectly, serving business, then rendering sort service, receiving sort, commission requires construction, operation, extension.' Other sections provide: Before issue, applicant therefor file petition stating name desires render, secured consent franchise transact business.' 460.503. 5. determining question consideration rendered territory, investment benefit, any, matters proper equitable applying territory. *' 460.505. note supra.

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