The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-24


gas by the receivers of the court. 1t
is claimed by those receivers that the
rates as so limited produce no just re-
turn on the property involved, and are
conf1scatory. Certain it is that consid
erlng the interest on the bonds of the
company each years operation under
the present rates involves a. deficit, in
ADDITION to the exhaustion of the
corpus of the property, Under the or
der or this court experts selected by
the receivers examined this property
and reported in substance that the pre-
scribed rates would not yield any fair
return.
"On the other hand, the finding and
order of the commission is entitled to
respect, and not having heard the
evidence 1 am unable to determine
that the rates prescribed by the COM
mission are unreasonably low. 1t may
be that the property affected with the
public interest has been bonded for a
sum exceeding its value and cost. If
this be true the fact that the limit of
rates fixed precludes the earning or
interest on the bonds, does not deter
mine the question. But the money
now in the hands of the receivers, the
result of the operations of the proper
ty, is subject to the payment OF the
costs of the operation, and the cost OF
the rece1Vership, security OF the
bondholders and brought under the
lien of their mortgage. 1 am not justi-
fled against their will IN. depriv1ng
them of it in any undertaking which
does not secure to them an adequate
return. am not satisfied that the
rates now prescribed will insure this
return. Experience has demonstrated
the contrary
The larger part of the funds now
in the hands of the receivers is claim
ed on account of rental by the Kansas
City Pipe Line company. This claim
is now pending in this court. If it be
valid it will render it impossible to
undertake the proposed extension
without mourning an Indebtedness to
be met out of future anticipated earn
ings or out of the corpus of the es-
tate. The continuance of the property
in the hands of the receivers of the
federal court cannot be counted on SO
as to authorize expenditure based on
future earnings.
From these considerations, 1 have
reached the opinion that l am not
justified in ordering these extensions
ceiverS are directed not to comply with
the order of the commission with re-
spect thereto"
Martin Won't Talk.
Henderson g. Martin, chairman of
the utilities commission, was one of
the first persons to read the Mar
shall decision after it was received in
Il don't think 1 can say anything
at this time," replied Martin when
dEkeQ Tor a statement regarding the
decision. Possibly later 1 will pre-
pare a statement, but am not pre-
pared to say anything just now
Asked if the decision came as a
surprise, Martin replied:
mo, not entirely. I was rather
expecting it, in fact
Hodges and Martin in Conference.
At the state house today Governor
Hodges followed the policy adopted by
Martin and declined to discuss the
case.
Il haven't seen the decision" said
the governor, land cannot say any
thing until / am more fully advised.
Mr.. Martin will send me letter COW
ering the general details of the case
and make such suggestions as he
deems best His suggestions will
probably not be received before Fri
day. 1t will be best to defer any
statement until I have received his
letter and had fa7apersonal talk with
him.
This afternoon the governor and
Martin planned to hold a conference
and to discuss the Marshall decision.
Last week Governor Hodges stated
that he would probably take a hand
in the gas fight if the federal courts
overruled the Martin order. Several
propositions are known to have been
under consideration. Among them is
the question of special legislative
session. This plan of intervening in
the gas case, though, seems rather
vague and uncertain.