ARKANSAS LOUISIANA GAS CO.
v.
DEPARTMENT OF PUBLIC UTILITIES ET AL.

U.S. | 1938-04-25
No. 645
Mr. Justice Cardozo took no part in the consideration or decision of this cause.
304 U.S. 61 Supreme Court of the United States (1938) Positive Treatment
Also reported at: 82 L. Ed. 1149 · 58 S. Ct. 770 · 1938 U.S. LEXIS 1018 · SCDB 1937-041
Cited by 24 cases

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Synopsis

Arkansas Louisiana Gas Company, a Delaware corporation engaged in both interstate gas transportation to industrial customers and intrastate gas distribution in Arkansas, challenged a state regulatory order requiring it to file rate schedules and contract information for all its operations. The Supreme Court upheld the state's authority to require the filing of comprehensive information about all the company's operations, holding that merely requiring informational filings did not unconstitutionally burden interstate commerce, even though some of the company's activities involved interstate transactions. The Court established that a state may require reporting on all operations of entities doing business within its borders without running afoul of the Commerce Clause, distinguishing between permissible information requirements and impermissible substantive rate regulation that might later be challenged.


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Opinion of the Court
Mr. Justice McReynolds

Mr. Justice McReynolds delivered the opinion of the Court.

Appellant, it Delaware corporation, lawfully purchases and produces natural gas in Texas and Louisiana and thereafter transports and delivers it through pipe lines to selected industries and public utility distributing corporations — so-called “pipe line customers” — at points in Arkansas. These deliveries are made under contracts entered into at Shreveport, Louisiana, and are effected by tapping a main pipe line or through connecting spurs. They amount annually to some eight billion cubic feet.

Appellant, by admission, also maintains a distribution department, through which it acts as a public 'utility, for the local sale and distribution of gas in many Arkansas towns; but this organization is distinct from the one which supplies pipe line customers.

The Arkansas Department of Public Utilities, proceeding under a local statute, in April 1935 issued a general order (No. 13) requiring public utilities to file, upon specified forms, schedules cf rates, charges, etc. Appellant presented such schedules for local utility service in the State, but declined to file" copies of contracts, agreements, etc., for sales and deliveries to pipe line customers.

'Thereupon 'the Department issued an order to show cause for this failure. In response appellant “set forth that the sale and delivery of gas from its Texas and Louisiana fields to its pipe line and industrial customers in Arkansas constitute interstate commerce, and chat in making such sales and deliveries it was and is not acting as a public utility, and that accordingly the sale and delivery of said gas and the rates, schedules and charges upon which .-the same is delivered and sold were and are not subject to the jurisdiction of the Department and are beyond its power to regulate, and that Order No. 13 is not legally applicable to said business.”

After a hearing upon the citation and response and much evidence, April 30,4936; the Department ordered compliance with the general order. The-matter then went for review to the Circuit Court, Pulaski County, and it held the challenged order invalid. Upon appeal, the Supreme Court ruled that the sales and deliveries in question were not free from state regulation because parts of interstate commerce, and directed compliance with the Department’s general order. The question for present determination is whether this general order, valid under the laws of the State, which only compels appellant to -file certain designated information, amounts to ah infringement of any right or privilege guaranteed to it by the Federal Constitution. And to this a negative answer must be given.

If, as claimed, certain of appellant’s activities in Arkansas are parts of interstate' commerce, that alone (and no other defense is relied upon) would not suffice to jüstify refusal to. furnish the information presently demanded by the State. v

Appellant operates locally at many places in Arkansas, also delivers within the State great quantities of gas said to move without interruption from another State. In such circumstances it may be highly important for-the state authorities to have information concerning all its operations. We are unable to see that merely to require comprehensive reports covering all of them would materially burden or unduly interfere with the free flow of commerce between the States.

In case the Department undertakes by some future action to impose what may be. deemed unreasonable restraint or burden upon appellant’s interstate business, through rate regulation or otherwise, that may be con tested. The rule here often announced is that no constitutional question will.be passed upon unless necessary for disposition of the pending .cause.

The judgment of the Supreme Court müst be

Affirmed.

Mr. Justice Cardozo took no part in the consideration or decision of this cause.


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Cited By

  • United States v. Nixon, 418 U.S. 683 (U.S. 1974)
    …d be no occasion to reach the claim of privilege asserted with respect to the subpoenaed material. Thus we turn to the question whether the requirements of Rule 17 (c) have been satisfied. See Arkansas Louisiana Gas Co. v. Dept. of Public Utilities, 304 U. S. 61, 64 (1938); Ashwander v. TV A, 297 U. S. 288, 346-347 (1936) (Brandeis, J., concurring). Rule 17 (c) provides: “A subpoena may also command the person to whom it is directed to produce the books, papers, documents or other objects designated there…
  • …Illinois Bell Tel. Co., 282 U. S. 133, 144; Western Distributing Co. v. Public Service Comm’n, 285 U. S. 119; Dayton Power Co. v. Public Utilities Comm’n, 292 U. S. 290; Natural Gas Co. v. Slattery, 302 U. S. 300, 306-308; Arkansas Gas Co. v. Dept., 304 U. S. 61; cf. Interstate Commerce Comm’n v. Goodrich Transit Co., 224 U. S, 194, 211. And the determination of the Commission permitted by §14 (a) with respect to the amount of gas reserve is essential to the determination of the rate of depreciation and amo…
  • …court, we cannot say that the only thing presently involved is the state’s power to require the filing of information without reference to its further use for controlling these sales. Cf. Arkansas Louisiana Gas Co. v. Department of Public Utilities, 304 U. S. 61. Here [*512] the orders constituted “an unequivocal assertion of power” to regulate rates and service. Indeed they involve something more than a mere threat to apply the regulatory plan in its later phases. They represent the actual application of t…

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