GOVERNMENT: The FPC's Dilemma

Cried Texas Governor Allan Shivers last week: "This is one of the greatest invasions of states' rights the courts have ever announced." What had alarmed him, along with oilmen and officials of other big gas-producing states, was the new gas decision of the U.S. Supreme Court (TIME, June 14). The Federal Power Commission, said the court, has authority to regulate natural-gas rates charged by "independent producers," i.e., those who gather gas within a state and then sell it to interstate pipeline companies.

The ruling came as a shock to the FPC. The commission...

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