The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-03-27
Attorney General Dawson Goes
After United Gas Co.
Alleges Violation Trust Laws
and Conspiracy.
|IS 4 PHILADELPHIA CONCERN
Connected With Many ~Stool
Pigeon" Companies.
Asks for Judgment of $3.50, 600
and Pay Kan. Nat. Losses.

In the amended petition filed today
in the Montgomery county district
court. Attorney General Dawson makes
sensational charges of violation Of the
antitrust law through q combination
between the OFFICERS Of the Kansas Nat
ural Gas company and the United Gas
Improvement company-the big nation
al gas trust-and asks judgment
against the United Gas Improvement
company Of Philadelphia in the amount
of sS30. 900. the appointment of receiv-
ers for the Pennsylvania corporation
ana an order compelling them to pay
the seeming losses of the Kansas Nat
uraL
Dawsou's petition alleges that an IL
legal partnership and combination in
restraint Of trade has existed between
the two big companies since March i.
1906. IL his amended petition. the at
.o-ney general cites that until 1905 the
Cni.eo Gas Improvement company had
ccntrc, of the manufactured gas bus
mess in Kansas City. Kansas and Mis-
charged that the two corporations
formed a monopoly for the control Of
the supply of natural gas from the
Kansas and Oklahoma fields.
The allegations in the petition charge
that the Philadelphia corporation
agreed to create several stool pigeon COR
porations in furtherance of their scheme
to violate the antitrust laws. AS q
result of this agreement, 1t is charged
that Kansas City Gas company. the
Wyandotte Gas company and the Kan
sas City Pipe Line company were or
ganized and chartered. A part Of the
plan, Dawson alleges, was to burden
the pipe line with enormous debt ana
then to burden the Kansas Natural with
tremendous rental charges. The rental
charges, 1t is claimed, were used as
the leverage by which the corporations
would show q continual loss in opera
ton and on these showings would base
their demands for increases in rates
for natural gas.
As a further consideration In the con-
spiracy and the aid Of the PennAylva-
was agreed that the United Gas I'M
provement company should be allowed
to dictate q part of the board OF df-
rectors and the managing officers OF the
Kansas Natural Gas company a9 well
as the policy of the Kansas corpora
ton. Not only does Dawson charge
that the working agreement for the
Q1CLaIlOu Oh pOl1Cy Wd$3 CdTIlCO Oue, O0l
that the offices of the three alleged
stool pigeons corporations are now and
have been the western offices OF the
United Gas Improvement company. All
Of these companies, says the petition.
are now directly under the supervision
and direction of w. F. Douthirt. fourth
vice president of the United Gas Inn
provement company in Kansas City.
Under this conspiracy and alleged
xyin nj ~ nf tho onfi-fF1Iof 1oWQ Ia ~.
son asks for judgment of 500 a day
against the Philadelphia corporation,
or a total fine OF $4,000 to be paid
into the permanent school fund.
Dawson also asks for receivers for
the property Of the United Gas Inn
standing in the name of that corpora
ton or the names of the Wyandorte
Gas company, or the Kansas City Pipe
Line company. Authority for ancil-
larry proceedings is also sought that
the state may reach the property of
the United Gas company in Kansas
City. Mo.
Through the alleged existence of a
partnership between the two corpora
tions, Dawson asks that the court
fasten upon the Philadelphia COM
pany the responsibility for the debts
of the Kansas Natural and compel
them to meet these obligations.
Judge Flannelley of Independence
has announced the appointment of
Senator John F. Overfield and w. ].
Breidenthal. Jr., as temporary receiv-
ers for the United Gas Improvement
company pending final action in the
case.
The pipe line company is already in the
Mining company, of Oklahoma. which de-
livers the Oklahoma gas supply to the
state line. At a hearing in Independence
Thursday, Judge FIannelley named re-
ceivers for the Consolidated company OF
that city on the states showing that it
has had illegal associations with the
United Gas Improvement company in the
alleged violation OF the antitrust laws
and sought to further embarrass the state
through its illegal relations.
Dawson this afternoon declared that
evidence now in his possession justifies all
the charges in his sensational petition.
He claims that with the testimony now in
his possession, there will be no escape
for the gas company into the court OF
Judge Smith Mcpherson.
The result of the establishment Of Daw-
sons contentious. means the turning OF
the property of the giant gas companies
over to the state receivers named by
Judge F1annelly several months ago. It
will also tend to place all Jurisdiction in
the Montgomery county court and to give
the state the regulation of rates for gas.