The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1916-11-03

members or the CQupci 10 prevent any
OF the others from getting the fran.
chlse, but no n had enough votes to
get the franchise.
one interesting feature OF the con.
test was the fact that the Dlckey syn
dictate, although applying for a fran.
chise to furnish Kansas City with nat
ural gas, had no gas. Dickey admit.
ted IN a deposition that his company
was commonly called the "Easless gas
company"
With the deadlock ON, the various
syndicates began to look for means
70 break il. One little company,
known as the pCorhln crowd" repre-
scented that Il had leases on gas lands,
and negotiations were begun between
Il and the Dickey syndicate which ter
minated IN Il setting out Of the fight
and giving the Dickey interests an
option on the lands Il was supposed
TO hold,
In the meantime. Hugh ]. MCGOWAN,
representative Of the United Gas and
Improvement Co, which had a good
thing IN its artificial gas franchise
In Kansas City, began making mystic
rious Visits to Kansas City. although
MP to that time none or the United
Gas interests had introduced a nat.
ural gas franchise ordinance IN the
council.
When the case finally got into the
courts It was revealed that the Dickey
interests, 70 get the Corbin crowd out
Of the way, had agreed to pay $4,000.
for an option on Its supposed gas
lands, and that MCGOWAN had agreed
70 pay 20 per cent Of the $4,000 Only
$4,000 ever was paid to the Corhin
crowd the remainder being withheld
because It was unable TO deliver the
on lands OF the $4,000 MCGOWAN
paid $4,000.
With the Corbin crowd eliminated,
the natural gas franchise competition
was limited to the Dickey interests
ana the United Gas and Fuel Co, and
there began negotiations between
these conflicting interests. The re-.
suit ct the negotiations was that the
hickey interests transferred to the
United Gas and Fuel Co. interests half
Of rs capital stock In exchange for
half the capital stock OF the United
Gas and Fuel Co. thus merging the
two companies and seemingly stop
ping an franchise competition. from
which citizens az Kansas City had ex.
pected finally to obtain natural gas at
a low price
The agreement between these two
companies was that while both fran.
ohise ordinances were 70 remain be-
fore the council. only one was to De
pushed actively and that the two com
panies would share alike in q new
company to be organized to take over
the franchise.
At this stage MCGOWAN. who az that
time. 20 public knowledge, in supply.
ing the money to get the corbin crowd
out Of the way. Wrote a letter to the
council saying that his company con-
trolled the pipes IN Kansas City and
that Il a natural gas franchise was 70
be let Il would be better to let 1t to a
company which had the great distrih
pting service OF the Kansas City Gas
Co He asked for a little time to sub
nit a proposition, The time was
granted.
MCGOWAN and the increased Dickey
crowd then BEGAN secret negotiations
which terminated in a decision that
MCGOWAN was to Introduce a fran.
oh.se ordinance and that neither the
DicGey nor United Gas ana Fuel Co.
ordinance was to be pushed Tor pas
sage. AS a consideration the pickey
interests were to be let Ia on the
financing Of the company which would
take over the MCGOWAN franchise il
being agreed that so per cent Of the
stock Of the Kansas City Gas Co.
would De transferred to the nckey in.
terests at its original price. It's ougi.
nal price had been nothing, the com,
psny having been financed On .
scheme by which & certain number q
shares went as a bonus to the pur
chasers q the compsnys bonds.
Under this ARRANGEMENT sae ceanc'
passed a MCGOWAN ordinance at s:
certs per 1900 feet The Mayor We
enaa IL r-s rsffraue ~ W5~-os rs..
employed senator Reed Frank Hager
mar ana r j lnEraham 70 bring
suit to ersoin the council from pass
Ing the ordinance over the Mayor.
veto TAis sun WIS suscsssiul. an.
as a result Of Ire Egh made on th,
franchise the ordinance which flnan,
Was pissed provided iog ezs al Z
cents
N the taking az testimony IN thi
csss the Inside story 81 the frlnchis
deals became public and TIE atto,
news were able R.ta many at,empt
Va set possession q the many seers
: contracts entored into. rickey On III
witness stand refused q produce Ii.
contracts ard refused to answer man.
Questions senator Reed Who wa
5 ~guesaonlne nickey. 6ireoted ne n,
- tEry puhlc before Eh0m the test
many vas heing taken. "a conn.
nicksy 10 san The commitment ac
ualy was prepared Dickey cnne
Nse -esn-nn4 49, a-1r-h-., 1880