The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-03-25
WHAT IT'S WORTH
Inside Facts About Value of Gas
Franchise.
Joseph Helm Sues the Topeka
Company.
THE FIGURE is S115,OOO
Claim That the Money Was Not
Paid.
Action for Amount Begun in
Federal Court.

chise was worth s115,00O to the Excel
sior Coke and Gas company since re-
named the Consumers Heat, Light and
Power company.
The city council gave the franchise
away for nothing.
The value of the franchise granted by
the Topeka city council is evidenced in
a suit of Joseph ]. Helm of Kansas
City, Mo-. and Arnold Kalman of st.
Paul Mimi. against the consumers
Heat. Light and Power company IN the
United States circuit court for $124,-
z99. so.
TIE plaintiffs claim that they were
never paid the purchase price of the
Continental Oil and Gas company s
$4,000 of forfeit money to insure to the
city the delivery of natural gas by
January 1, 1906 posted with the city
by the plaintiffs was returned to the
Consumers company and never hand
cd back to the plaintiffs, that the char
ter fee amounting TO S327.50 was ad-
Nanced and never repaid and that in
addition $4,172 was advanced in pre-
Guidated. The suit vas filed this morn
ing by the attorney for the plaintiffs
Dan B. Holmes of Kansas City. Mo.
c. K. Holiday. who is commonly rec
ognized as being president of the Con-
suT1ers' Gas company, though he per-
sonally denies such a connection said:
Il don't know anything about this mat
ter except in q very general way. 1 did
hear of some trouble that existed be-
tween Kalman of Minnesota. Helm of
Kansas City and the New York parties,
but don't know what it was all about.
As I understand t these two men new
penses in rebuilding the plant and ex-
tending the mains. II was d big under
taking and required a lot OF money.
They were to be in on this but never
their /
can be settled is to let the matter get
into the courts. All of this Is beyond
me. 1t belongs to the men that are
farther up.
1T will be handled from Chicago by
the attcrnes-s for the company IN that
city"
The majority of the stock of the Ex-
celsi0r Coke and Gas company mas al
ways been held by Anthony n. Brady
Of New York city, holder of gas fran
chises in Chicago and New York. In
fact Brady is credited with holding
practically all of the shares. In turn
it is claimed that he holds the majori-
ty of tie stock in the Consumers COM
pany. organized from the old company
10 distribute the natural gas through
the Excelsior Coke and Gas company's
mains.
It seems to depend entirely upon a
franchise as to whether it is valuable
or not
The Continental Oil and Gas company
franchise granted in 1898. The fran
chlse was for natural gas and local
parties com b1ned together to secure its
grant. 1t was trafT1cked back and forth
though the company was kept intact in
namc. They had a 81 600 deposit up
with the city to guarantee that gas
would be brought to the city. The fran
chise and everything was finally dis
posed of to Helm for SO, 500.
Helm has money behind him and the
Kansas Natural Gas company the fran
chise jumps up in value to $115 0OO
First the council gives it away for
nothing Then it is sold for $500 and
now the value of 1t, according to the
suit, is s115.0OO. There are four causes
for action stated in the suit. The first
IS for the purchase price, second for the
deposit, third for the charter fee and |
fourth for su1-ry expenses in which |
certain names are mentioned who are |
here. !
The plaintiffs state their side of the
case as follows:
Plaintiffs state the plaintiff. Joseph |
J. Helm. is citizen of the state of Mis- |
IS a citizen of the states of Minnesota, |
and that the defendant, the Consumers |
Light Heat and Power company is a |
corporation duly created and existing
under and by virtue of the laws of the
state of Delaware and citizen thereof,
and that the matter in dispute in this
action exceeds exclusive of interest and
costs. the sum or value of $1,000
For their first cause of action plain
tiffs state that heretofore to wit. on
A pril Il. 1905. they were the owners of
an ordinance OF the city of Topeka, |
number 2k33. entitled. An ordinance
granting to the Continental Oil and Gas
of Topeka, Kansas, its success
sors tnd assigns for period of twenty
years the right to construct, maintain
and operate works for natural gas to-
xether with the right to use all streets,
avenues and public grounds of the city
Of Topeka for the purpose of laying
their mains and pipes supplying and
to said city of Topeka and
the inhabitants thereof gas for manu-
featuring. heating and Illuminating and
FOR all other purposes for which natural
gas IS or may be used during said period
and to regulate the price thereof" and
also of an ordinance OF the city of To-
peka. number 252S entitled, An ordi-
nance amending sections 3 and Il of an
ordinance entitled An ordinance grant
ng TO the Continental OIL and Gas COM
oany of Topeka, it's successors and as
signs for a period of 20 years. the right
% construct, maintain and operate
works for natural gas together with
he right to use all streets. avenues and
public grounds of the city of Topeka
or the purpose of laying their mains
md pipes supplying and delivering to
aid city of Topeka and the inhabitants
hereof gas for manufacturing, heating
md Illuminating and for all other pur-
Doses for which natural gas is or may !
De used during said period ard to regu- !
ate the prices thereof the title to j
aid ordinances by means of convey I
Lnces standing at the time in the name '
4 the plaintiff. Joseph J. Helm, but the !
anne being in fact held for the joint {
nd equal benefit of the plaintiffs, ]
Joseph ]. Helm and Arnold Kalman. |,
plaintiffs further state that on, to- I