The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-06-08
THEY MUST FIX IT
Eastern Corporation Wants to
Pipe Gas Out of Kansas.
Applies for Charter But Falls
Short of Requirements.
NOT ENOUGH MONEY.
Board Requires That More Capt.
tai Shall Be Paid.
Gas Belt People Don't Want
Product Piped Out.

z. Mackey, of Pittsburg, Pa, one of
the promoters of the big corporation
which proposes to pipe gas out of the
Kansas natural belt to surrounding
cities, came to Topeka Tuesday after
noon and filed an application with the
state charter board for admission to do
business in Kansas. He was accom-
panied by Senator J. K. Cubbison of
Kansas City. Kan.
The concern is organized under the
name of the Kansas Natural Gas and
Oil company. It secured a charter in
Delaware a short time ago and is cap
ftalized for $4,000 600.
In the application for the admission
of the concern into the state little is
said about Liping gas anywhere That
proposition is covered up for the COM
pany wanted to secure its admission
before the people of the gas belt, who
are opposed to piping gas out of the
state. found out about it.
The original charter as granted in
Delaware, however, not only provides
for piping gas from the Kansas gas
fields to the two Kansas Cities. Law
renee, Topeka, LeavenwOrth, Wichita,
Joplin, St. Joseph and other western
cities, but it also proposes to do bust
ness in the gas belts of Pennsylvania,
Ohio, Indiana and West Virginia. In
fact, it is said to be a big merger of
a number of companies in each of
these states and as soon as it is ad-
mitted to each state all the holdings
of these companies will be transferred
to the merger. It has been formed
largely by Pittsburg capitalists A
New York frs, it is said, has agreed
to finance the big Kansas pipe line
scheme as soon as the merger secures
authority to do business here.
Secretary of State RurrOW and Bank
Commissioner Albaugh were the only
members of the charter board in To-
peka when Mackey and CubbisOn filed
Attorney a
Coleman. the third member, was in
Clay Center. The applicants had a
draft for $4,000 with which to pay the
charter fee and they expected to Sc
cure admission to the state immedi-
ately. but it happened that the assets
of the company are not sufficient to
comply with the Kansas corporation
law. The law provides that a cOrpOr-
alton to secure a charter must have
20 per cent of its capital stock paid
up, and the charter board has a rule
that a foreign corporation must have
assets amounting to at least 20 per
cent of its capital stock before it can
get into Kansas. The big gas concern
had only $4,000 in assets, according
to its showing made Tuesday, and
the two members of the board here
refused to admit the company on that
showing.
Senator Cubbison said that as soon
as the company is admitted to the state
it will have an abundance of assets
assets to burn in fact. Leases on thou
sand of acres of oil and gas land and
a large number of gas wells are simply
awaiting the admission of the company
into the state to be transferred to it.
He wanted the company admitted so
that this could be done.
Secretary Burrow thought if that was
the case the company ought to have
capitalized for a modest sum in pro-
portion to the assets it could show at
the time, and then increase its capital
when it secured new holdings. Cubbi-
ct ira
Bile.
Mr.. Albaugh said he would not vote
to admit the company unless Attorney
General Coleman rendered an opinion
that II was all right Mr.. Coleman was
called up bN telephone and the situa-
ton was explained to him, but he re-
fused to give any opinion concerning
the matter Until he could make a per-
sOnal examination of the subject.
Mr.. Coleman will be in Topeka on
Thursday and the application will come
up again then Some of the people in the
gas belt VIII also probably come UP. The
gas belt people bitterly opposed to
piping gas out of the state to Kansas
City They are afraid 1t will be in
centive for large manufa curing indus
tries to locate there instead of going 10
one of the gas belt towns. They have an
abundance of gas for themselves and al
the cities within reach of the gas belt for
years to come. They do not object to let
ting the gas go, but they are afraid Of
the advantages natural gas will give the
larger cities. Accordingly there Will
probably be a delegation here from the
gas country Thursday to protest against
allowing the big gas merger to come into
the state for the purpose of piping gas
out.