The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-01-25
The CAS- HEARING
Wyandotte Gas Co. Starts
Something at Session.
Wants to Raise Price of Gas to
55 Cents.

Application of the Wyandotte Coun-
ty Gas company for permission to in
crease their rates to all consumers of
natural gas to 55.11 cents per thou
sand cubic feet, was made shortly be-
fore noon today in the natural gas
case on hearing before the public util-
tiles commission. The APPLICATION was
made by ]. w. Dana representing the
Kansas City, Kan, distributing COM
pany, who offered to frrnish evidence
in defense of the application.
City Attorney r. J. Higgins of Kan
sas City, Kan, promptly objected to
the introduction of any evidence, de-
claring that he represented 100, 900
on the other side of the application,
and that the application had come as
a complete surprise to him. The com
mission then took an adjournment un-
til afternoon to give Mr.. Higgins an
opportunity to inspect the application
and to give his reasons for asking for
more time to the cimmission.
The APPLICATION for an increase in
rates cites the order of Judge John
G. Pollock by which the applicants
say they will have to pay 81 cents per
thousand cubic feet net for gas after
the first of February. They show their
capital and bonded Indebtedness, and
also attempt to show the percentage
of decrease in consum ption that will
result from an increase in rates, and
show under their estimate of such de-
crease that a charge as that asked
for will be necessary to assure a rea-
Sonable profit on the inVeStm ent.
They cite that they cannot buy gas at
81 cents and sell it for 25 cents, and
that unless they pay the price demand
ed they have every reason to believe
the supply will be cut off, leaving
patrons.
Mr.. Higgins will fight the proposed
increase, and expects to be ready in a
few days to produce testimony oppoS-
ing the increase. He declared he will
ask for continuance until he can Sc
cure such evidence.
An estimated appraisement of the
value of the holdings of the Kansas
Natural Gas company, and the present
worth of such holdings, were among
the important phases of information
produced this morning. According to
the figures of Engineer Witt, who was
on the witness stand most of the
the present scrap value of
the company's holdings is something
more than five and a quarter million
dollars, or nearly enough to wipe out
the bonded debt of about S7,000,000-
The engineer admitted that much
of his estimates are purely arbitrary,
and declared that the value of the
leaseholds of the company cannot be
ascertained, the amount of gas still to
be developed and obtainable from the
gas lands being absolutely matter of
guesswork.
The engineer showed that the orig
inal cost of the company's holdings
was $15,594, ,113.2S. He deducted
from that the amount paid for leases
in the sum of $3,416, ,373.1O and also
the cost of the wells aggregating $3.50
0S3.81, leaving a balance of 11,22T-
656. He declares he estimates the
present worth of that property, which
includes pipe lines, pumping stations,
etc, at rs per cent of the original cost,
or $2,S06,914 He estimates the pres
ent worth of the leaSeholds at $1,67S,-
317 and of the wells at $775,00O, or a
total scrap" value, if sold at once
without further operation, of $780,
231.
A tilt between attorneys occurred
when John J. Jones of Chanute, rep
reSenting the Kansas Natural and it's
receivers, offered to introduce a sworn
statement of the receivers as to the
condition of the company, and their
findings since taking charge. Several
attorneys declared they will wish to
cross examine the receivers and for
that purpose asked that they be pro-
duced in court. Mr.. Jones finally
agreed to prepare the statement and
to take up the matter of producing
the receivers for cross examination.
He promised to file the statement late
this afternoon.
The statement of the engineer also
showed that the Kansas Natural has up
wards of 154,00O acres of undeveloped ter
ritoTy, most of which never has been
tried out, but he declared the value of
such territory is purely problematical,
and that he Is in a position to offer no
estimate of ITS actual value. For the
purpose of arriving at some sort of con
clusion as to its value. however. he placed
an arbitrary value of s. per acre on all
such territory.
Attorney John Marshall of the board
promised to file in the case, for the con-
sideration of the commission a recon-
mendation of the attorney general of
Oklahoma to the Oklahoma legislature
providing that cities may condemn gas
lanos for the use and benefit of such
cities Such a proceeding, if carried out.
leave a very meager supply of gas to
Kansas consumers. the bulk of the pro
ducing fields being in Oklahoma.
The complaints of the various distribut-
ing companies will conclude the evidence
Tor the present in the hearing, and will
leave the commission an immense amount
of work in digging out the facts from a
valuations and appraisementS and finaT
clal statements of the condition both of
the Kansas Natural and its distributing
companies. all of whfch will have to DE
taken into conSiderat ton in reaching a de
clslon as to an adequate rate that will
conserve the interests of the various per-
sons interested.
expensive than coal. even at its present
price, for heating residences is expected
also to be introduced, and to this end
attorney Marshall asked the privilege of
calllng Senator Emerson Carey of Hutch
lnson To tell his experiences when he re-