The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-02-09
DOherty Can't Touch Kansas
Natural at Present Price.
Must Spend $2,5OO,OOO to Get
New Supply.
INSURE PRODUCERS RETURN
Present Rate Too Low, DOherty
Says at Hearing.
Would Prohibit Use of Gas for
Heat Purposes.

Kansas City, Feb. 9.-Unt1 the
Kansas utilities commission shows
some inclination to talk over the gas
rate situation fairly there is little
likelihood the Doherty interests will
attempt to close the deal to purchase
a controlling interest in the Kansas
Natural Gas Company. This inference
was made Thursday by Henry L. Do
herty of New York. in concluding
his testimony in the gas rate hearing
in the federal court in Kansas City.
Kan.
TT will be necessary to spend more
than So. 100000 in improvements inn
Raediately after the Kansas company
Is purchased" Mr.. Doherty said in
reply to a question of Chester l. Long,
attorney for the receiver This
amount will be spent in connecting
the lines of the Kansas company with
the fields of production and does not
appear to be good business in the face
of the present rate wranGle.'
Mr. Doherty said the fixing of
gas rate dependent on the service rem
pered is unfair to the producer in re-
plying to H. o. Castor, attorney for
The utilities commission, who asked
II the Doherty interests will be salts
fled if the rate is fixed contingent on
the service.
absolutely not" Mr. DOherty re-
o.
expenditure of large sums Of money
in making connections. We do not
wish to go to this expense unless as
sured it is a good business PROPOSE
lion. The entire rate controversy
has created a bad Odor in eastern fl
nancial circles and should be adjusted
Immediately if eastern capital is to
aid in Developments in this section
s. Mr.. Doherty said the present rate
is too low and should be changed now
BY the commission. He suggested that
B slight increase be made effectlve
Immediately to be followed later by
rate that will insure remuneration
TO the producer.
would you consider a proposition
fair whereby the company is allowed
20 charge a higher rate and the com
mission holds the increase in its treas
dry until service is assured Mr.. Cas-
tor asked
THAT is a good idea" Mr.. Doherty
replied provided the agreement is
based on a consideration of the ex-
tensions necessary to supply the de-
mand."
Enough for Five Years.
Mr.. ADoherty suggested the restric-
ton of me use of gas to cooking and
lighting as a solution of the problem.
He said ar increased rate will result
in consumers abandoning the use OF
the product for other than these pur-
poses The increase, he said, still will
make gas an economical fuel and
would maintain competition with
other fuels.
where gas is used for heating pur-
poses a rate not to exceed As cents
Should prove satisfactory" he said.
'.To insure an adequate supply under
the prevailing conditions some sort of
a limiting device should be included
in the service or a rate fixed which
It'll # for hO a r
ing purposes"
Judge Wilbur Booth questioned Mr..
Doherty regarding the life of the sup
ply of the wichita Natural Gas COM
pany, owned by the Doherty interests.
I'VE estimate the supply from the
present sources will be sufficient for
at least twelve or fifteen years." Mr..
Doherty replied. I'm case the prop
erty of the Kansas company is cOnsol-
idated with our companies the supply
life will be decreased and other fields
will have to be explored. l believe eX-
ploratioE of fields toward the Gulf of
Mexico will result in the discovery of
Sufficient supply to be deemed ade-
ouate This will mean the expendi-
tiire of a considerable sum and the
producer will need added encourage
nIent."
s'Are the same fields available in
case of the consolidation that now are
used by the Wichita company" the
court questioned.
t"They are and we estimate the life
of the supply will be about five years
without further exploration" Mr..
Doherty said ut is not a question of
the quantity of the gas supply but one
of getting it"
Thousand Feet Day
J. A. Harzfeld, city counselor of
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