The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-04-01

IF the plant today is worth $40, 275,-
GAG 49, said the commission, the
equity in the plant is s., 865, 1853, which
is a fairly good profit for seven years
of operation with no capital invested
To reach that decision, the commits
sion shows that the outstanding bonds
are $,159,000. Deducting dividends of
$1,2S2, 500, leaves $5,S76, 500; and a fur
Their deduction of 1886, 916.16, now in the
treasury, leaves SIS, 409, $50. SO outstand-
ing Indebtedness. The difference, $4,-
S65,463, is the company's equity in the
plant-and without any capital in
vested.
Says 25 Cents Is Enough.
'"The law of diminishing returns"
was one of the problems before the
commission and the rule of fair rev.
enue producing rate was to be deter
mined. In view of the thousands and
millions of cubic feet of gas sold to
manufacturers at minimum rates. the
commission believes that 25 cents a
thousand feet isn't too low, although
future evidence might change the view.
The question of diminishing supply was
a big one. Receivers, members of the
commission and representatives of
forty interested cities visited the gas
fields to study the question. The gas
company contended that in 1913 it could
furnish but twelve million thousand
cubic feet of gas. The commission be-
1ieves this figure is too low, Records
show the following sale of gas in four
years:
1909, sold 29 73o, SSS thousand cubic feet.
1910. sold 1851 ,419 thousand cubic feet.
1911, sold 31.s73,4 42 thousand cubic feet.
1872 sold %. 172,S13 thousand cubic feet-
Yet the falling off of little more
than three million thousand cubic
feet of gas in 1912, isn't viewed with
alarm by the utilities commission.
That body points to the fact that there
is a business connection between the
Kansas Natural and Oklahoma Nat
ural. Under their working agreement,
the Kansas Natural is permitted to tap
the Oklahoma supply in an amount
not to exceed fifteen million cubic feet
a day. So, if the Kansas supply fell
off in 1912, 1t is not an occasion for
real alarm in the opinion of the COM
mission and is not sufficient grounds
on which to plead for an increase of
100 per cent in existing rates.
Average Price Was IL Cents.
Looking still further the commits
on its own figures. the Kansas Natural
has received but .119S cents per
thousand feet for its gas. 1t has paid
for gas but .03S3 cents a thousand
cubic feet. Raise the rate to so or
65 cents to consumers and the COM
mission does not feel such action
would IN any manner be warranted
by the evidence. The records also
show that the Kansas Natural has
bought 57,714.213 thousand cubic feet
of gas and has produced 150,442,115
thousand cubic feet.
The valuations of the company's
plant were made. One was by engi-
neers named by the receivers, one by
the engineers appointed by the COM
mission. The value returned is $22,-
444,630.66. including intangible values
by the receivers; and S14. ,634.04,
without intangible values. as found by
engineers for the commission.
even if it is accepted as true,
saws the commission. that the Kansas
Natural Gas company is in need of
help, it is not clear to us that an in
crease in rates would prove to be the
help it needs. If the company is as
sick, as some of its representatives as
sert, it is hopeless; if its condition is
such as is asserted by the cities and
most of the distributing companies, it
is not in need of help" Again the
commission says: I'm other words,
the Lord furnished the gas and the
public furnished the money. The
bondholders have been paid their
principal and interest, have no further
interest in or demand upon the COM
pany."
to increase its rates, the commission
further points out that an increase
would bankrupt the distributing COM
panies of the 40 affected towns and
cities since IneSe companies nave
bound themselves to supply gas at
a given sum for given term of years. |
The commission further suggests that
Judge Pollock rescind a portion of his
order and permit the Kansas Natural
to supply gas to factories during the
summer months of the year.
History of the Case.
During 1912 and for several years prior, |
the Kansas Natural Gas company had
furnished fuel and lights to approximately |
1ea00o households in Kansas. Following