The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-08-11
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flat rate was necessary, according to
the gas officials.
II believe the public will generally
approve the 35 cent rate" said Robert
Stone, an attorney for the gas receiv-
ers. t'The reduction of the minimum
charge from 81 to SO cents was just
and I was heartily in favor of this
step. But the public should also be
willing that the gas company earn a
return on its investment
Victor Hays, president of the Kansas
Natural, as well as several gas com
pany attorneys attended the St. eJoe
meeting. S. NJ Brewster, attorney
general, represented the state .ff2 r
Robert Stones Explanation.
Here is the way Robert Stone ex-
plains the move:
After a general discussion it was
agreed that the receiver would with
draw the minimum charge of 81, leav-
ing the 50-cent minimum established
by the public utility commission I'M
disturbed. This was done because
Brewster insisted that the charge
would fall heavily on the poorer con-
sumers who were least able to stand it.
The concession was made freely and
not as trading stock for any return ia
vors.
"On the other hand Judge Flannelly
expressed himself as anxious to reach
some fair terms on which the receiv-
ership could be terminated and all liti-
cation ended This, however. could
not be done without the cooperation
of the utilities commission and a pro-
vision of an adequate rate. No rate
thus far suggested by the commission
could be considered in such a settle
ment, he said. For years the COM
pany has been compelled to furnish
gas far below actual cost and below
the price provided by it's franchise
contracts with the cities. The result
has been that the company has been
utterly unable to pay its annual OBJ
legations and at the same time make
the needed extensions to new fields. p
1.-The result has been a steady fail
ure in supply. For four years the
commission has succeeded in keeping
the company down to a confiscatory
rate but 1t has ruined the service. We
have had cheap gas but little of it.
That policy has been tried long enough.
1t would be wise to try one of mutual
helpfulness instead of ruin and con-
fiScation.
company's stock down to 81 a share
and no stakeholder was willing to adj
vance any more money to the company
to make the much needed extensions.
Its credit was ruined When the fed
eral court granted the injunction, thus
indicating for the first time that a
reasonable rate might be expected,
new life was breathed into the COM
pany.
1.-The stockholders appointed a re-
organization committee, guaranteed a
bond for .s750.000 for extensions,
agreed to raise s1.250,000 more and
are doing everything possible to in
sure good, efficient service. New
leases have been procured and wells
are being drilled. The stock of the
company has risen from 81 to SIS.
Reasonable Rate Means Service.
"All this has been because of a little
decent treatment and in the hope that
a remunerative rate would be allowed.
1t proves that a reasonable rate means
good service.
''It is easy to say in a speech or
newspaper that twenty-eight thirty
or thirtytwo is a reasonable rate but
whether it is or not is a question to
be fairly tried by the court Gas will be
done in October) and not to be de-
cided without evidence by passion and
prejudice.
The people are really willing to
pay fair price if they can get the
service, but they will not be satisfied
with a low rate without gas"