The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-04-21
STATE UTILITIES
LOSE GAS CASE IN
FEDERAL COURT
Twenty-Eight Cent Rate Is
Held Void by Booth.
Bristow Commission Usurped
Rate Making Power.
UNWARRANTED, HAD NO POWER
Entire Controversy in Hands
Federal Court and l. c. c.
Leaves to Gas Company Right
to Establish New Prices.
BristOw Commission Usurped
Rate Making Power.
UNWARRANTED, HAD NO POWER
Entire Controversy in Hands
Federal Court and l. c. c.

Joseph L. Bristow and the publie
utilities commission usurped rate
making power beyond their constitu-
tional rights when they established a
IS cent rate for the Kansas Natural
Gas company, according to decision
from St Paul this afternoon by Judge
Wilbur F. Booth of the United States
district court. The decision is sweep
ing and against the state commission
on every issue. 1t holds that the
present rate is non-compensatory, is
confiscatory, unreasonably low and in
violation of the federal constitution
Not one peg is left for the Kansas
public utilities commission to stand on
in the decision by Judge Boooth. Tho
decision covers rs typewriter pages
and was received this afternoon by
Morton Albaugh. clerk of the United
State district court. Not only does the
federal court enjoin permanently the
operation of the % cent rate, but holds
in the United States court full and
final jurisdiction to settle all disputes
as to rates.
That Bristow and the state commis-
sion unwarrantly and unauthoratively
usurped power that belonged to feder-
al bodies was the declaration of Judge
Booth. He holds emphatically that the
distribution of gas in Kansas by the
Kansas Natural Gas company is inter-
state commerce and not subject in any
and ruling of the Kansas commission.
Under no phase of the federal law
even in the absence of direct act by
congress-was the state commission
warranted in establishing rates for the
company Such rates as were estab
lished were confiscatory, the court
holds
Distribution of gas as brought to
Kansas by the Kansas Natural from
its fields in Oklahoma is strictly and
I la.,Ns ~ k4D
Kansas state commission, says the
court. By seeking to enforce a 2S
| cent rate or any other rate, the com
mission exercised undue burdens ami
sought to enforce regulations that
could be established only by branches
Of the federal government.
A permanent injunction is given the
Kansas Natural Gas company in its
sweeping victory over the state COM
mission. Not only that but the court
expressly reserves jurisdiction over
all parties to the gas controversy and
also Jurisdiction over all issues in
volved in the action.
The decision sets aside the % cent
rates esta blishcd by the Kansas COM
mission December 10, 1915. 1t leaves
to the gas company the right to estab-(
lish such rates it deems advisa BILE.
Should this rate be contested. the
right to set aside rests entirely in the
federal courts ana thru the interstate
state commission and the state courts.
The ruling wipes away every material
contention of Bristow and the com
mission.
In the present action, the state COM
mission had sought to enforce the IS
cent rate. The gas company had ap-
piled to the federal court for an in
junction against the operation of the
rate. alleging that it was non-com-
pensatory, confiscatory and unreason-
lou A iC-
sued when the case was presented
several months ago before three fed
eral judges. Then the case went to
Judge Booth for final determination
on all issues involved His decision
today was an affirmation of all of the
material allegation of the gas COM
pany.
The order means the immediate
wiping out of any contention that the
state commission can fix rates in the
gas case and takes the entire con-
troversy and issue from state rate
making powers.
| Judge Booth sat specially in the
gas case for the district of Kansas.
The case was removed from Judge
Pollock and Judge Booth was one Of
the three federal district judges who
last summer heard the application for
a temporary injunction and restrain
| ing order. When the case came up for
final disposition on its merits, the ac-
/ tion was assigned to Judge Booth,
who as federal judge for the district
| of Minnesota, holds the same relative
position IS Judge Pollock of the Kan
saS district