The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-05-17
Loss Through Inefficiency of
the Delivery Service
Nearly as Great as the Def
cheney in Revenues.
A LEAKAGE OF 80 Per CENT
Between the Fields of PrOduc-
ton and the Consumers.
The Needless Loss Is Estimated
at $4,000 in Value.

Statements which, upon comparison
showed that the loss through the in
efficiency of the delivery service for
gas between the fields in Kansas ana
Oklahoma and the consumers in Kan
SaS and Missouri is nearly as great as
the deficiency in revenue complained
of by the receivers for the Kansas
Natural Gas company, were made be-
fore the public utilities commission
this morning.
The receivers of the Kansas Natural
have submitted a statement of the
1914 business showing that the COM
pany lost S172, 900. To make up this
deficiency they ask. the privilege of Il
general increase of rates TO all Kansas
consumers More than half their
product is sold in Missouri and it is
declared that they expect to ask for
permission to make corresponding in
creases there, although rates in Mis-
souri, are already somewhat higher
than in Kansas.
But it was shown today that there is
loss in the delivery of gas amounting
to 80 per cent of the volume received
by the Kansas Natural into its pipe
line. Experts referred to by Judge
E. E. Sapp, in his statement before the
commission, agree that 25 per cent is a
reasonably ample allowance for I'M
available shrinkage- Auditor Victor
Hayes of the Kansas Natural testified
that the loss experienced is at least
five per cent too high. Based on the
sale of L., 500 million cubic feet of gas
by the Kansas Natural last year for
$2,726, 900, this extra per cent of loss
cost the Kansas Natural rather more
than $4,000 which might have been
avoided.
At the hearing of the application
for authority to increase rates in Kan
it has already been shown that the
rather longer than one year cost $137,-
600, while there are a lot of claims
for attorneys fees still unsettled. To-
day also it was developed that $4,000
of the loss shown in the total of $172,-
600 deficit in 1914 was theoretical
would reduce the total to. $4,000.
Deduction of the $4,000 of admit
teddy wasteful loss in transmission of
gas would leave the deficit but $33,-
receivership would make the expense
of that administration appear heavy.
Auditor Hayes Testifics.
Mondays session of the gas rate
hearing was devoted partially tc a
discussion of the production, waste
and plant consumption of gas by the
Kansas Natural, with Auditor Hayes
on the stand as witness Hayes
showed that 1 400 900, 900 feet of the
total of billion handled by the com
pany is used up for fuel at the COM
pany's compressors. The rates in eff
feet in Missouri ere somewhat higher
than the Kansas rates, producing
about 100000 a year more revenue
on but a slightly greater sale Of gas.
In this connection Auditor Hayes
testified that the loss of gas was 80
per cent moro than the 3 billion feet
actually handled, and that this was a
high percentage in general pipeline
experience. He suggested that as u
remedy the distributing companies
ought to tighten up their lines.
E. e. Sapp, of Galena, attorney for
a distributing company moved that
this evidence be stricken out. He de-
clared that the Kansas Natural gas
owns all the gas it handles
until it enters the consumers meters.
IF this company is to be regarded
as a producing company" declared
Judge Sapp, 1.-The utilities commission
has no authority over it. If it is re-
graded as both a producing and a dis
tributing company it of course comes
under your jurisdiction. The Kansas
Natural is responsible for all the gas
until it actually gets to the consumer
and if there is any leakage 1T should
assume responsibility for that"