The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-07-17
LOOK To MISSOURI
Kansas Agrees ON Natural Gas
Rate Increase
Providing Sister State VIII AL
low an Advance.
ADD REVENUE 100000 A YEAR
Means a Raise of 8 Cents a
1000 Feet i'm Topeka.
Allow Big Expenditures Soon
for Improvements.

If the Missouri commission will
| agree to a similar increase, rates for
natural gas in Kansas Will be ad-
| vanced to % cents a thousand cubic
feet. That was the ruling of the
| Kansas utilities commission which
stipulated restrictions and require
ments under which the order will be
made.
According to the statement Of tho
Kansas commission, the new rate will
mean an increase of 100000 a year
in the revenue of the Kansas Natural
Gas company. At present the rate
in Topeka is Is cents the thousand
cubic feet, or % cents if not paid
within ten days. In substance, the
commission told the gas company 1t
might remove the ten day payment
privilege. A minimum of SO cents
will be charged under the proposed
new order.
In no way will the new order affect
the towns of independence and Cot
feyville nor the towns of Bronson,
Fort Scott and Moran, where a rate
of thirty cents is now charged. 1t
is asserted by the commission that
the increase in rates will allow the
expenditure of $14S,000 for extensions
the first year and 100000 year for
the next five years. 1t is also claimed
new rate will permit payment of the
first mortgage bonds, while salvage
from the gas plant will meet the obli-
cations to second mortgage bond hold
ers when the Kansas Oklahoma gas
fields fail to yield an adequate supply.
History of the Case
Application for an increase in gas
rates was filed with the public utili-
ties commission in April and testi-
mony was presented in May by receiv-
ers for the Kansas Natural Some IS
towns were affected by the application
of the receivers. They sought to
force the distributing companies to
make betterments of their lines and
prevent loss of gas through leakage.
Kansas City, Atchison, Oakland. Mer-
Ram, Olathe, Edgerton, LeLoup,
Princeton, Welda, Fort Scott, Parsons.
mount. Coffeyville, Mound City. Elk
City, Tonganoxie, Baldwin, Rosedale,
LeneXa, Gardner, Wellsville, Ottawa,
Richmond, Colony, Thayer, Galena,
Cherokee, Scammon, Oswego, Liberty.
Caney, Mound Valley, Independence
and Redfield were affected by the or
der in the case.
Based on returns from the BUSH
ness of 1914. the receivers claimed a
loss of $1,30O,000 from the business of
year ago. They asked a sliding
scale increase in rates-the increase
based on the distance of the various
towns from the Kansas Oklahoma gas
fields.
Permission to refuse to supply gas
for commercial purposes was also
asked of the commission. Through
such an order, it was claimed that the
supply for domestic purposes would
be greatly increased
Ready to Spend 100000.
Receivers for the Kansas Natural
promised the expenditure of $500, 600
this year for betterments, extensions
of fields and purchase of new gas, if
the increased rates were allowed. An
equal sum was to be spent each year
for a period of three years.
Whether the decision should arrive
in time to permit the making of ex-
tensions this year, was a grave ques-
ton. A. E. Salathiel, attorney for the
receivers, recently stated that the i'm
provements would be made this year
if a decision favorable to the receiv-
ers should be announced early this
month.
Kansas City and an attorney in the
various gas cases, stated today that lie
believed the improvement could he
made this year.
The gas case controversy decided
yesterday is but another link in a long
chain of litigation over gas receiver
ships and rates The gas troubles
have many times been before Judge
Flannelley of the Montgomery county
district court. They have had an ir-
ming in the state supreme court and
found their way to the United States
district court and circuit court Then
they jumped to the supreme court of
the United States. Twice the case has
been before the Kansas pubic utilities
commission. Three years ago the
commission announced its first de-
ciSion in the case.