The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-07-23
WHAT CITY HAS SPENT.
Already Gas Litigation Has Cost
Over $500.

City Attorney Charles F. Spencer
mas completed the work of checking
over the bills in the gas case htiga-
ton, and reports that in three years
the city has spent $3,519.14 in fighting
the gas company. OF this amount
$1SS.55 was spent in the quo warranto
case There is an additional item of
$3.50 for attorneys fees which will be
due ]. D. Mcfarland as soon as Judge
Hook renders his decision in the gas
case.
If the decision of Judge Hook is adj
verse to the city, as it probably will
be, the city will have a big bill of
costs to pay, amounting probably to
$4,000 more If the city decides to
appeal the case to the United States
court of appeals, it means $500 more
attorney fees for Judge Mcfarland.
Yet in spite of the heavy expense
involved in fighting the gas company,
to be in favor of insisting upon very
material changes in the proposed or.
dinance which will be considered by
the streets and walks committee Mon
day night.
City Attorney Spencer said today:
"One of the worst features of this or
dinance, to my mind, is that part
which says that the city shall never
reduce the rates to such point that
the company cannot make 10 per cent
on the capital invested. This practi-
cally takes it out of the power of the
city to ever reduce the rates below the
the franchise expires. The United
States supreme court has decided that
as general proposition, the city can
reduce rates of public commodities as
low it pleases, just so that it leaves a
reasonable profit for the company.
But this franchise ordinance, as pre-
pared, fixes it so that the city must
never reduce the rate to interfere with
that 10 per cent, and it is not hard
for the company to keep its earnings
from exceeding that amount. This
provision in the franchise becomes a
contract between the city and the
company, and must be observed"
That the gas company is playing a
double game with the city is clearly in
dictated by it's offer to reduce the rates
to $1.35, or s1.25 if all discounts are sub
tracted. In its suit against the city,
resisting the reduction of rates. the gas
company contended that it cost from
SITS to $3.50 to manufacture gas in the
city of Topeka.
Special Master Robert ]. Brock. who
seemed to do everything possible to
help the gas company, went even fur
Their than this, and in his report on the
evidence found that il cost the gas COM
pany $2.01 a thousand to make gas here.
If the gas company's evidence was any
good, or if Mr.. Brooks finding is of
any value, how can the gas company
afford to make gas for $1.25 or even Il
Las a thousand? The company would
apparently lose from so to 75 cents on
each thouss nd sold. which of course it
QOeSn 1nIenO 90.
If the gas company can cut its rates
to $1.25. the chances are that it can cut
considerably deeper than that, if it is
obliged to do so. Therefore a good
many of the councilmen will insist upon
a lower rate in exchange for 30-year
franchise.
One city official. who is very well
posted in such matters, but who re-
fused to allow his name to be used,
said today:
Il have reason to believe that the
city could pass an ordinance fixing the
rate at $1.20 and have it accepted by
the gas company without a fight. That
indicates to my mind that If we could
enforce a s1.20 ordinance now. we ought
to put lower rate in the ordinance,
because the ordinance is to run 30 years
and 80 years from now the company
will no doubt be making gas at a much
lower expense per 1000 than now
There is a good deal of sentiment in
favor of one rate on gas for lighting
purposes and a still lower rate on fuel
gas.
The recent gas rate adopted in the
city of Lincoln, Neb-, after a long fight
between the city and the company, was
$120 after October l.