panhandle eastern pipe line public service commission argued decided december appeal state indiana panhandle eastern pipe line public service commission john yost new york city appellant karl stipher indianapolis appellee public service commission indiana william evans indianapolis appellees indiana gas water et al justice rutledge delivered opinion broadly question whether indiana power regulate sales natural gas made interstate carrier direct industrial consumers indiana narrowly asked decide whether commerce clause const art force forbids appellee public service commission require appellant file tariffs rules regulations annual reports steps comprehensive plan regulation preliminary possible exercise jurisdiction rates service sales panhandle eastern transports natural gas texas kansas fields across intervening including indiana ohio michigan indiana furnishes gas local public utility distributing companies municipalities turn supply needs residential commercial industrial consumers since appellant also sold gas large amounts direct glass corporation industrial consumption shortly beginning service appellant informed number customers local distributing companies indiana intended render service directly large industrial consumers wherever possible pursuant policy since ceedings began direct service extended another big industrial user commission initiated hearings relative direct service panhandle eastern indiana consumers concluded distribution indiana panhandle natural gas direct consumers subject regulation commission laws state notwithstanding alleged contrary effect commerce clause upon appellant direct sales industrial sers accordingly issued order november filing tariffs stated early panhandle eastern brought suit state set aside enjoin enforcement order cause pending commission issued supplemental order declining appellant offer submit specified tariffs reports information reasserting full regulatory power conferred indiana statutes trial vacated orders enjoined commission enforcing accepted appellant view effect commerce clause operations indiana reversed judgment denied relief appellant sought held first commission orders amounted unequivocal assertion power regulate rates service appellant direct industrial sales thus presented squarely question commission jurisdiction sales affected commerce clause flatly hold sales interstate rather intrastate commerce taking former kind held nevertheless subject state power regulation doctrine cooley board wardens held appellant making sales public utility within meaning application state regulatory statutes burns ind acts decision review pursuant judicial code effect state statutes whether permitting filing tariffs information unrelated regulation requiring filing initial integral steps regulatory scheme thus presenting threshold scheme application question state power go primarily question construction state courts determine view commission position construed state say thing presently involved state power require filing information without reference use controlling sales cf arkansas louisiana gas department public utilities orders constituted unequivocal assertion power regulate rates service indeed involve something mere threat apply regulatory plan later phases represent actual application plan initial stage situation appellant required await regulatory order contesting commission jurisdiction cf public utilities comm ohio fuel gas mean express opinion concerning validity order commission may enter order us mean required decide whether sales question lie within scope state power regulate rates service order respects may may entered question sales interstate transactions contrary suggestion left open state treatment rests upon view gas transported interstate takes character commodity come rest broken bulk leaves main transmission line reduced pressure enters branch lines laterals irrevocably way final distribution consumption merely mechanical considerations longer effective ever exclusively determine regulatory purposes interstate intrastate character continuous movement resulting sales thus gas furnished local utilities resale supplied unquestionably transportation sale interstate commerce yet subjected practically identical changes pressure gas sold appellant directly industrial use neither practical common sense constitutional sense tolerate holding reduction pressure makes industrial sales wholly intrastate purposes local regulation deliveries similar pressures utility companies remain exclusively interstate variations main pressure criterion regulatory powers commerce clause cf interstate natural gas federal power sales clearly interstate commerce controlling issues therefore two congress enacting natural gas act stat et effect forbidden regulate sales tho appellant makes directly industrial consumers sales nature related cooley formula commerce clause force forbids act think doubt answer given questions namely competent regulate sales two questions may best considered background legislative history natural gas act judicial history leading enactment prior time series decisions dealt various situations arising state efforts regulate sale imported natural gas story adequately stop review attempt reconciliation decisions groundings suffice say delineated broadly area permissible state control intrude former included interstate direct sales local consumers exemplified pennsylvania gas public service latter service interstate local distributing companies resale held state missouri kansas natural gas reinforced public utilities comm rhode island attleboro steam electric shortly decisions stood regulate sales direct consumers even though made interstate line carrier true sales domestic commercial uses also industrial consumption rate whenever interstate carrier engaged distribution uses hand sales resale usually local distributing companies beyond reach state power regardless character ultimate use fact prevented regulating sales also seriously handicapped making effective regulation sales within authority impotence act relation sales resale interstate carriers brought demand federal regulation congress response natural gas act reach sales prevent hiatus regulation immunity caused act declared provisions chapter shall apply transportation natural gas interstate commerce sale interstate commerce natural gas resale ultimate public consumption domestic commercial industrial use companies engaged transportation sale shall apply transportation sale natural gas local distribution natural gas facilities used distribution production gathering natural gas section determines act coverage light situation existing time three things three congress drew within regulatory power delegated act agent federal power commission transportation natural gas interstate commerce sale interstate commerce resale natural gas companies engaged transportation sale omission reference sales direct sales consumptive use affirmative declaration coverage inadvertent deliberate congress made sure intent mistaken adding explicit prohibition act apply sale emphasis added words plainly mean act shall apply sales sales resale ultimate public consumption domestic mercial industrial use direct sales consumptive use whatever sort excluded line statute thus clear complete cut sharply cleanly sales resale direct sales consumptive uses exceptions made either category particular uses quantities otherwise line drawn one decisions arrived distributing regulatory power act passed moreover unusual legislative precision employed view relieving exempting segment industry regulation act though extending federal regulation purpose effect cut state power contrary perhaps primary purpose aid making state regulation effective adding weight federal regulation supplement reinforce gap created prior decisions act drawn meticulous gard continued exercise state power handicap dilute way appears merely situation led adoption legislative history including committee reports congress cited plainly history respect changes took place reaching final form exceedingly incongruous result statute motivated designed shaped bring effective regulation particularly effective state regulation construed teeth objects import wording well cut regulatory power manner making less capable regulation statute adoption yet effect appellant asks us essence position apart standing directly commerce clause congress enacting natural gas act field entire field open federal regulation thus relieved direct industrial sales subordination state control exact opposite fact congress true occupied field meticulous take territory held reach area include direct consumer sales whether industrial uses sales regulated regulation repeatedly sustained instance reaching stricken true case came involving state regulation direct industrial sales wholly apart sales uses cases sustaining state power whether regulate tax company making industrial sales selling also domestic commercial users suggestion certainly decision different result follow direct industrial sales made neither prior judicial line statutory line drawn kinds use relation sales different uses lines drawn sales use whatever kind sales resale cf colorado interstate gas federal power natural gas act created articulate legislative program based clear recognition respective responsibilities federal state regulatory agencies contemplate ineffective regulation either level emphasized repeatedly congress meant create comprehensive effective regulatory scheme complementary operation manner usurping authority public utilities comm ohio fuel gas federal power comm hope natural gas interstate natural gas federal power pointed federal power comm hope natural gas supra page page primary aim legislation protect consumers exploitation hands natural gas companies scheme one federal state agencies accomplish neither protective aim comprehensive effective dual regulation congress mind companies divert cream heir business unregulated industrial uses natural gas act therefore merely ineffective exclude sales question state control rather policy terms confirm control congress involved declaration though identical terms one made mccarran act stat et concerning continued state regulation insurance business effect equally clear view act historical setting legislative history objects show intention continue regulation congress expressly taken cf prudential ins benjamin congress undoubted power define distribution power interstate commerce southern pacific state arizona authorities cited cf prudential ins benjamin supra power exercised manner wholly inconsistent exclusion state authority sales question congress action moreover unequivocal recognition vital interests people consumers industry alike regulation rates service indiana interest appellant direct sales obvious interest certainly less interest california people protection evil effects wholly unregulated sale insurance interstate robertson people state california industrial consumers instances go without protection rates service supplied competition state regulatory system crippled efforts indiana commission seriously hampered protecting interests classes users equally important vital local interests becoming important every passing year steady transition use primitive fuels natural gas fuel oils appellant seeks set interest complete freedom regulation imposed supposed national interest uniform regulation national interest considered apart largely illusory record company asserts state regulation prices service amount power blocking commerce impeding free flow two answers one experience insofar phase natural gas industry subjected state regulation date effects shown occur answer case experience vary power congress correct abuses regulation appear state power regulate interstate commerce wherever exists power destroy unless congress expressly provided power require done terms reasonably related necessity protecting local interests power rests appellant also envisages conflicting regulations commissions various main pipe line serves particularly relation curtailment service weather conditions others require fears conflict also state commissions federal power commission assigns possibilities support view national uniform regulation alone appropriate operations evidence thus far substantial conflict either see probability serious conflict strong outweigh vital local interests referred requiring regulation moreover conflict develop matter interrupting service one largely related appellees say transportation thus within jurisdiction federal power commission control accommodation conflicting interests among various considerations lead conclusion made powerless regulate sales question supposed necessity uniform national regulation contrary matter high local import justify control even congress remained wholly silent given indication intent state regulation effective case addition considerations taken independently policy think congress clearly delineated permitting supporting state regulation removes necessity determining effect commerce clause independently action congress taken operative silence attractive gap appellant envisioned co rdinate schemes regulation mirage judgment indiana affirmed affirmed justice jackson concurs result justice murphy took part consideration decision case footnotes commission authorized take steps indiana statutes creating state regulatory scheme public utilities burns et seq appellant sales far larger sales made several local distributing companies thus appellant sold cubic feet cubic feet local utility served branch line see note infra chairman appellant board stated anxious take business unregulated transaction federal power commission public service commission indiana intended establish higher industrial rates based competitive fuel basis prior hearings commission appellant entered arrangements provide direct industrial service dupont de nemours company plant near fortville indiana service commenced subsequent hearings trial commission urged still first order merely required filing information action lie contest power fix rates otherwise regulate sales power exercised resulted bringing forth appellant tender compliance conditioned upon commission acceptance filing without prejudice appellant right contest validity subsequent order supplemental order expressly stated filing deemed purpose available use commission carrying duties statute several local utility companies intervenors proceedings commission permitted intervene test orders appellees national association railroad utilities commissioners filed brief amicus curiae support commission position illinois natural gas central illinois public service referred earlier decisions turned mechanical test determining interstate commerce ends intrastate commerce begins namely introduction gas service pipes distributor stated cases determining validity state regulations less concerned find point time space interstate commerce gas ends intrastate commerce begins looked nature state regulation involved objective state effect regulation upon national interest commerce cf south carolina highway dept barnwell et california thompson duckworth arkansas page page appellant gas enters indiana main pressure pounds per square inch state gas enters branch line pressure pounds per square inch lateral line pressure pounds per square inch lateral line gas transported two adjacent meter houses one house gas delivered pressures low pounds per square inch deliveries made local distributing company pressures ranging pounds per square inch similarly gas laterals stemming appellant main line reduced pressure pounds per square inch furnished dupont plant pressures approximately pounds per square inch two utility companies served lateral dupont plant summary leading decisions concerning sale transportation gas prior passage natural gas act see illinois natural gas central illinois public service see also powell note physics lawcommerce gas electricity howard gas electricity interstate commerce appellant contends large quantity service direct industrial consumers exemplified sales hocking distinquished sales pennsylvania gas public service made manner commonly associated local distribution system supplying gas consumers city nothing decision however requires limited contrary emphasis may rather placed fact situations involve sales ultimate consumers clearly category residences served company pennsylvania gas case see illinois natural gas oentral illinois public service chief justice stone summarizing pennsylvania gas case stated involved gas directly ultimate local consumers jersey central power light federal power dissenting opinion powell note quoted infra note attleboro decision made face rhode island commission finding narragansett company selling electric current interstate attleboro company suffering operating loss rates customers yielded fair return commission contentions grounded finding effectively regulate rates narragansett company local consumers without also regulating rates attleboro company compare memorandum submitted behalf national association railroad utility commissioners general solicitor john benton hearings committee interstate foreign commerce sess industrial use exempt regulation result may well unjustifiable discrimination result commission complaint may made sales industrial uses plainly subject regulation commission regulates sales classes consumers reasonable rates several classes service properly related may established beginning allowed state tax fix price first sale delivery gas electricity brought sister state first sale also necessarily last sale consummated consumption powell note committee interstate foreign commerce said proposed bill became natural gas act confers jurisdiction upon federal power commission transportation natural gas interstate commerce sale interstate commerce natural gas resale ultimate public consumption domestic commercial industrial use course many years regulated sales natural gas consumers intrastate transactions also able regulate sales consumers even though sales interstate commerce sales considered local character absence congressional prohibition subject state regulation see pennsylvania gas public service commission intention enacting present legislation disturb exercise jurisdiction however case sales resale wholesale sales interstate commerce example sales producing companies distributing companies legal situation different transactions considered local character even absence congressional action subject state regulation see state missouri kansas natural gas public service commission rhode island attleboro steam electric basic purpose present legislation occupy field held may act see also sess hearings bill congress representative several large companies construed stood exempt sales industrial consumers regulation state well federal proposed amendment exempting sales resale industrial use regulation proposed legislation hearings committee interstate foreign commerce sess answering memorandum benton pointed representative misunderstanding purposes stating industrial user much local service sale householder domestic use congress occupies field sale industrial use accordingly subject state regulation id proposed alternative amendment render clear beyond doubt federal regulation sales resale extended transactions gas used industrial purposes id benton amendment adopted house committee appears substantially unaltered form natural gas act finally enacted committee emphasized benton representatives state commissions municipalities appeared support bill support position appellant relies part favorably reporting amending natural gas act bill become law views expressed committee report made nine years natural gas act passage hardly determinative juxtaposition contemporaneous history persuasive congressional intent passing act see notes supra ibid pennsylvania gas public service appears case flatly ruling point regulatory purposes authority clearly recognized illinois natural gas central illinois public service cf note supra state missouri kansas natural gas public utilities comm rhode island attleboro steam electric cases well congressional report quoted note jurisdiction granted federal power commission natural gas act necessitates close correlation state regulatory bodies section act provides cooperation federal state agencies see note text per cent gross revenues local indiana utilities sale gas derived service approximately industrial consumers served service substantial number industrial users taken appellant local utilities suffer great losses revenue unable dispense trivial percentage plant properties resultant increase unit cost gas lead necessarily increased rates consumers served local companies per cent gross revenues local indiana utilities sale gas derived service approximately industrial users taken appellant local utilities suffer great losses revenue unable dispense trivial percentage plant properties resultant increase unit cost gas lead necessarily increased rates consumers served local companies service physical conditions characterizing industry magnitude investment required acquires large monopolistic effects particularly marketing areas distant producing ones cf federal power comm hope natural gas note text often competition fuels rather competing pipe lines see note cf milk control board commonwealth pennsylvania eisenberg farm products robertson people state california ind strial gas public utilities comm ohio ohio service gas kentucky whip collar illinois cent clark distilling western maryland ann darby evidence conflict asserted exercise jurisdiction appellee commission functions federal power commission granting appellant permission natural gas act extend facilities serve dupont plant see note supra federal power commission specifically provided order prejudice authority indiana commission exercise jurisdiction may sale service proposed rendered panhandle eastern du pont cf note see note