Page:Department of Public Utilities v. Arkansas Louisiana Gas Co.pdf/9

 discharged into the distribution systems of local distributing companies to which it was sold, and into the pipes of the industrial customers direct from the transmissiOn lines of the pipe line company. The gas was not treated in any manner after it had crossed the state line. It is further claimed by appellee that all of the gas so transported was was delivered either to local distributing companies engaged in the distribution of gas in cities and towns, or to large industrial customers along and near the transmission pipe line, and that the sales in such cases were by virtue of special contracts made with such selected industries and local distributing corporations; that the contracts varied in duration, terms and conditions, setting forth the price agreed upon and minimum requirements.

In support of its construction that the business in question constituted interstate commerce, appellee says that in each instance where such sales were made the buyer was responsible for the gas at the point of delivery and metering, adjacent to the transmission lines of the pipe line company. The price depended upon the terms of the special contract and varied with the circumstances of service and of attending competition, a major factor in making prices being availability and cost of other fuels, such as coal and oil.

The business was conducted in this manner until November 30, 1934, when the Arkansas–Louisiana Pipe Line Company was merged with Southern Cities Distributing Company, and the name of the merged corporations was changed to Arkansas–Louisiana Gas Company. Southern Cities Distributing Company owned a number of local distributing plants in towns and cities in Arkansas, and after the merger the ArkansasLouisiana Gas Company was owner of both the production and pipe line properties of the former Arkansas–Louisiana Pipe Line Company, and of the distribution properties of the former Southern Cities Distributing Company.

The new corporation continued to engage in production and transmission of gas in the same manner