The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-16
And Owners Ready to Construct
Pipeline Connection.
CLAIM RATES MUST Be HIGHER
BOndhOlderS Favor Doing
Nothing Under Present Rates.
Federal Judge Marshall Takes
Case Under AdviSement.

Salt Lake City. Utah, July 16.-That
there is plenty of gas available for
the Kansas cities served by the Kan
sas Natural Gas company, provided
extensions are made into new fields,
and that the Kansas Natural interests
are more desirous of boosting rates
than in securing more gas, was evil
denced in the hearing of the case be-
fore United States District Judge Mar
shall.
In support of the contention that
plenty of gas is available, ]. E. Watts
testified that he and others control
an output of S0O.0oO.0OO cubic feet
per day in the Gushing field and are
ready to enter into a contract to sup
ply it.
That it is higher rates that the
Kansas Natural people are after was
brought out when John Joes of Cha
mute, attorney for the receivers
named by the federal court, asked
General Manager McBeth.
mo matter how much gas you get,
can 1t be distributed at the present
prices at profit "
'It cannot" was McBeth's reply.
Charles Blood Smith, representing
the first mortgage bondholders, said
the bondholders would rather stop
right where they are than go ahead
under present conditions.
That the interests of the public may
not be considered paramount by Judge
Marshall was intimated when City
Attorney o. F. Evans of Kansas City,
Mo-, was making an argument.
Eliminate the interests of the pub
lie from the question, for the purpose
of this argument" said the Judge.
Ready to Build Pipe Line.
A E. Watts, representing the largest
operators in the Gushing field informed
Judge Marshall that he anr his asso-
ciates are ready to build a pine line,
and deliver 800 million feet of gas a day
to the Kansas Natural Gas company
at It's lines at Tulsa.
The laws of Oklahoma are not In
tended to facilitate the selling of gas
outside the state and to go through all
the legal requirements would require
some time According to Watts if the
arrangements can be made for the sale
/ of the gas from the Gushing field to the
Kansas Natural, it would be a record
piece of work to get gas delivered by
January 1, 1914 c. B. Smith, of To-
peka representing the first mortgage
bondholders objected to the expenditure
of any more money, unless 1t was
shown that the Kansas Natural would
be operated at profit. He protested
against further expenditures so long
as the deficit continues. In view OF this
objection, Judge Marshall seemed to be
particularly interested in the proposal
of the Gushing field operators to build
, the pipe line and deliver gas with
out the Kansas Natural's investing in a
new line.
Martins Statement.
Il believe the people must look to
the federal court for gas" said Hender-
son Martin, chairman of the Kansas
public utilities commission, who made
a statement before Judge Marshall in
the federal court, concerning the order
of the commission for the receivers of
extend the pipe lines and secure more
gas.
Chairman Martin said that while the
commission could make an order, IL
could not enforce it. Judge Marshall
asked wherein the Kansas commission
had the right to order a company to
extend its pipe lines. in another state,
and Attorney General Dawson of Kan
sas argued that the commission had
the right to order the Kansas Natural
company to supply its patrons with
gas, and that az the company already
secures gas outside of Kansas that the
commission has the right to issue the
order no matter where the company
obtained the supply.
Takes Case Under Amusement.
Judge Marshall took under advise
ment the case of the Kansas Natural
Gas company, which seeks to have set
aside order of the Kansas utilities
commission directing the state and
federal receivers to extend its pipe
line into oklahoma to obtain more
gas.
At the opening of the afternoon
hearing of the Kansas Natural Gas
company case by Judge John Mar
shall, Charles Blood Smith of To-
peka, representing the first mortgage
bondhoIders, entered protest against
receivers of the company spending
money for extensions.
First mortgage bondholders pro-