The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-04-26
GAS COMP ANY
WINS ITS CASE
/ AGAINST STATE
Federal Court Holds That the
: Cases Are Removable.
1t Can and Will Try the Issues
Involved.
'hE OPINION IS UNANIMOUS
Injunction Proceedings Are
Taken Up at Once.
The Company Will Seek an
Immediate Decision.

kansas City. Kan, April 26.-Fed-
eral court judges today decided
AGAINST the state of Kansas and the
p4blic utilities commission on every
va issue touching the natural gas
c4se. In an opinion by Judge San
bern the court held that the gas rate
catse was removable and that the fed
eIpi court could and would try the
issues involved in a suit to restrain en-
farcement of 2S cent rate order by
the Kansas utilities commission.
Jqdges Campbell and Booth, sitting
wEh Judge Sanborn in the case CON
clfrred in the opinion.
The decision by Judge Sanborn fol-
lotreG two days of evidence taking in
which both the state and attorneys
fqt the Kansas Natural Gas company
sought to establish their claims as to
jtgisdiction. The gas company sought
a trial OF the case on its merits in the
federal courts. The state. both
through the attorney generals office
and the state public utilities commits
sien. sought to hold the trial of the
csase in the state courts. They de-
clared the question of an injunction
against the order of the Kansas com
mission was not of such a nature as
a federal tribunal The federal judges
held in favor of the gas company.
Ready for Trial.
This afternoon the attorneys took
up the injunction proceedings. Almost
Immediately following the Sanborn de-
cision, gas company attorneys an
nounced they were ready for trial on
the question of a permanent injunc
ton against the utilities commission
order for % cent gas. In testimony
which they propose to submit by
briefs and affidaVits they will seek to
establish their claim that the gas rate
is confiscatory and is in no manner
ccmpensatory in view of existing eX-
pense for producing gas and delivering
fuel to Kansas and Missouri towns.
The issue at this time involves only
E1ansas towns. Missouri towns af
fected by the case have been given un-
til May % to answer.
sTestimony to be offered before the
federal judges in the injunction pro-
ceedings will in a general way cover
the proceedings before the utilities
commission. The gas company will
conclude its case with an argument for
a.permanent writ against the Kansas
commission and the gas company re-
ceivers such an order would effect
uAIly block the enforcement of the 70
CENTS gas order and according to the
chims of the gas company attorneys,
sas consumers
1T is probable that the taking of
testimony before the federal judges
wiu be concluded late Thursday af-
ternoon. The gas company will seek
an immediate decision. Should their
application for an injunction be grant
ee. they will at once apply for higher
rate.
Reasons for the Ruling.
1.-THE judges gave two reasons for
their ruling. which supports the con-
tention of the receiver
First-That the court never relin-
ouished its control of the property to
the state receiver who was given con-
troll under appointment of state court,
this being acquiesced in by the federal
court. and the receiver not only had
the right but was bound by duty to
seek redress in the federal court if he
thought II necessary.
Second-That the receiver had the
right to appeal to a competent court
and the federal court was competent.
John Landcn, receiver. seeks 20
raise the gas rate to 81 cents, it is
charged.
The hearing on the order of the
Missouri public service commission to
set the price at As cents in st. Joseph
was set for May % at st. Paul. The
Missouri board and the Missouri cities
interested will keep their representa-
tives at the Kansas City, Kan, hearing