The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-03-02
The GAS TROUBLE.
Mayor House Says Distributing
Companies Cause Most of 1t.
They're the "Black Sheep" in
the Whole Tangle.
A settlement is UNLIKELY
ssDOherty in Clear" but Many
Interests Involved.
The Meeting at Kansas City
Was a Useless Affair.

The distributing companies are the
real black sheep in the gas tangle,
Mayor ]. e. House declares. House
returned this morning from the con-
ference of the mayors of forty cities
supplied by Kansas Natural Gas,
representatives of the distributing
companies and H. L. Doherty, which
was called by Mayor Edwards of Kan
sas City.
The distributing companies, who
claim never to have made profit en-
natural gas, are making every move
to stage a return to the use of arti-
fetal gas. At any rate, they do not
propose to sell the natural product at
a loss or even a small percentage of
profit. They announced to the may
ors that unless restrained by the court
their idea of a fair price will be S1.00
per thousand.
Roherty declared in his recent talk
before the Chamber of Commerce that
while the ascent rate was coniiSca-
tory, he would be satisfied with a very
small raise. House, who talked with
him in Kansas City, is of the opinion
that 80 cents would satisfy him.
Could Furnish Supply.
'Doherty, by connecting up his
holdings, could supply 80,000,000 feet
of gas, a day" House declares, 'by
| for heating,- lighting and cooking.
| Should the distributing companies de-
mand a dollar thousand, it would
| mean that there would be no attempt
to use the gas fuel Only 10000
! 600 feet day is necessary for the
| lighting and cooking purposes in the
! 40 Kansas towns served by the COM
| pany.
should the 81 rate stand it would
| mean that DOherty would have two
thirds of his gas supply on his hands.
| A lower rate is to his advantage.
Dana, representing the Kansas City
distributing company, is talking his
| head off down in Kansas City for a
return to the old artificial medium.
| ''Doherty is in the clear on the prop
i oSition, but the distributing companies
are the fly in the ointment" House
continued
The representative of the Kansas
City company stated that they had
lost over four million dollars. The
Topeka distributing company claims
to have lost 100000 since 1905. How
much of the loss that should be as
sessed up to the building of new mains
and equipment was included in the
Floss was not made clear to the as
sembled mayors. T. F. Doran at
torney for the local company stated
that during the first nine months of
1916, the company dropped $4,000.
In october the new rate went into eff
feet. Doran did not state what the
tprofits of the company had been since
that time. The Topeka company pays
the Kansas Natural Gas company 16
cents a thousand for its supply.
| Judge Booths decision on the rs
cent rate, expected this week may
solve the difficulty. but it is more
likely to open the way for more liti-
| cation, House declares.
p. Z. c. Will Appeal.
There seems to be very little doubt
in 4 hot
will be declared confiscatory. Booth
has it in his power to declare the
| whole matter one of interstate com
merce, thus completely removing the
affair from the hands of the Public
| Utilities Commission. If this is done
there is small doubt according to
House, that. the utilities will appeal
| the matter.
In case Judge Booth does not give
! any opinion on this point, it is pos
sible that the attorneys for the dis
tributfng companies. which have no
desire to be under the control of th..
IP. L. c., will seek a decision on the
\ matter.
And further possibilities of litiga-
i tion-the public utilities commission
may stubbornly refuse to accept a
! verdict of confiscatory rate.
The possibilities of litigation are
/ much greater than the possibilities of
Il solution. The solution rests upon the
/ improbable ''if'-if Judge Booth de-
/ cfdes the 2S-cent rate to be confisca-
tory; if the p. Z. C. gracefully assents
and if he does not venture an opin-
ion upon the interstate nature of the
business of the company, if the dis
tributing companies do not seek to get
the matter adjudged as one of inter
i state commerce, if the 2. U. c. grace
fully assents to the verdict that %
cents is confiscatory, if they will fix
a rate regarded as equitable by Do
herty then-Kansas and Topeka will
: get gas.
1.-The called meeting of the mayors
was an entirely useless furbelow, -
House declares. Our franchises have
no standing in the sight of the higher
courts. and we have nothing to do but
!