The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-09
CHARGE OF BAD FAITH MADE

ties of 26 million and 42 million cubic
feet respectively. 1t is also reported
that these new fields could be reach
ed by the Kansas Natural Gas COM
pany by the construction of a few
miles of pipe lire at an expense which
would not be burdensome to the COM
pany.
This portion of the report bears par
ticularly on the showing of the Kansas
Natural Gas company to the public
utilities commission that it could not
supply over = billion cubic feet of gas
for the current year beginning March
81, 1913; and Mr.. Morrison calls at
tention to the fact that it is today SELL
ing its usual amount of gas, two and
one-half billion cubic feet per month,
which would amount to 80 billion
cubic feet per year.
Morrison Can't Find Shortage
In concluding the report as to this
feature of his investigation. Mr.. Nor
rison says:
IF, during the month of May, 1913,
the Kansas Natural Gas company is
selling two and one-half billion cubic
feet of gas, it could not possibly be so
very short of gas. Moreover, If the
receivers would get out now and make
new purchasing contracts to augment
the increasing demands, the r1gors OF
winter will surely bring, there is no
room for doubt, that the Kansas
Natural Gas company could and would
supply just as much gas to It's con-
SumerS the coming winter as II mas
done in past years
Why Company Doesn't Worry.
Next Morrison tells of the action of
the gas company and the federal re-
ceivers in the matter of a possible
gas shortage for next winter. The fact
that there is plenty of gas available
isn't just the point. The question is,
will the gas company furnish that gas?
Morrison says the company isn't wor-
ried about next winters supply. And
in this language he tells why:
"Since the state of Kansas COM
menced quo warranto proceedings
praying for a limited custer against
the company for violation of the state
antitrust laws and since the officials
of the company conceived the idea of
increasing the rates. the available sup
ply of gas has not worried the officials
of the Kansas Natural Gas company,
who seem to manifest keen interest in
having the first mortgage bonds fore
closed and the assets of the company
sold to satisfy the claims"
In support of the latter charge the
report is as follows:
Diverted $25O,OOO Cash.
"Imme mediately prior to the proceed
ings before Judge Pollock, wherein it
was alleged that the Kansas Natural
Gas company was insolvent and re-
ceivers We're appointed on the showing
so made, it seems that there was some
high financial juggling on the part of
certain officials to make a satisfactory
showing of insolvency, but was the
bona fide? There was a num-
ber of outstanding notes which were
not due amounting to over 100000
and these notes were paid in full two :
days before the petition alleging in
was filed. Eugene Mackey,
president of the Kansas Natural Gas
company sent a telegram to G. S.
James, treasurer of the company, ad-
vising him to withdraw $4,000 from
the funds of the company and de-
posit same in lieu of a bond. The
telegram was sent in cipher and trans
lated under oath by an official of the
read as follows:
Deposit Immediately before close
of business hours today $4,000 cash
to secure surety on Johnson bond.
Tell nobody about transaction
Couldn't Live With Commission.
''It is more than passing strange
that this money should be withdrawn
and sent away to take the place of a
bond already provided by bonding
at a nominal cost of $475, a