Page:Department of Public Utilities v. Arkansas Louisiana Gas Co.pdf/10

 these activities bad been handled prior to the merger, with the single exception, as, claimed by appellee, that the transmission department was severed and became distinct from the production department.

On September 30, 1935, additional local distributing plants were acquired by appellee, and it now owns all of the severed distribution properties except those at Little Rock, Clarksville, Hot Springs and Camden.

In support of its position that the service involved in this appeal constitutes interstate commerce, appellee says: "Neither Arkansas–Louisiana Pipe Line Company nor Arkansas–Louisiana Gas Company ever undertook to serve from its transmission system all industries applying to it for service. It only served those industries within economic reach of its lines or which it could serve—it selected such customers. Some customers applied to it that it could not serve at all."

Appellee's witness Hamilton testified that there are eleven compressor stations along the pipe line system, the functions of which are to keep the gas in a constant and steady flow; that the gas never comes to rest in the line, but movements are constant until it is delivered to the customer's meters, or to the distributing plants: "From the time the gas is taken into the line in Louisiana at any given time or in any one day, it is in transit until delivered to the customer. The pipe line is merely the vehicle through which the gas is transmitted."

Appellant concedes the general rule laid down by the Supreme Court of the United States that the transportation of natnral gas from one state into another is interstate commerce. West v. Kansas Natural Gas Co., 221 U.S. 229, 31 Sup. Ct. 564, 55 L. ed. 716, 35 L.R.A. (N.S.) 1193. This rule has been followed by state and federal courts in many cases. It is contended, however, that the question here is not whether the transportation of gas constitutes interstate commerce, but do the sale, distribution and delivery in Arkansas of gas transported from Louisiana under the facts before us retain the essential characteristics of interstate commerce?