The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-03-18
"Day After" Feeling Following
Analysis of Court Decision.
State Has Power Only to Regu-
late Distributing Price.
PRODUCER SITTING ON THE LID
Kansas Natural Is Under Super
vision of Federal Court.
Price to Consumer May Not Be
Reduced After All.

Maybe the United States supreme
court didn't play such a big joke at
the expense of the gas companies after
all. Lawyers who have studied the
reports of the Kansas Natural decision
today see a chance that Mister Ulti-
mate Consumer may not get the relief
indicated.
Under the decision of the supreme
court the Kansas Natural remains a
common carrier engaged in interstate
transportation. Its rates may be re-
viewed by the federal court Just as
they were reviewed by Judge Booth.
Consequently the Kansas Natural may
charge for its Oklahoma gas to Kansas
and Missouri towns such rates as the
| federal court says are just and equita-
BILE and return a fair profit to the
producing company.
1t is hardly natural to assume tina t
| the consuming companies will buy gas
| at intake stations and deliver it to
| consumers for less than the price
which they pay to the producing COM
pany. In fact, it is quite reasonable
to assume that the state public utilities
commission will be confronted with
| the necessity of fixing a rate somewhat
the excess of the price paid to the
| Kansas Natural.
If the rates which Judge Booth
fixed for the Kansas Natural are al
| lowed to remain in effect, there is a
slim chance for a big reduction in ex-
| lstlng rates. The state commission has
no power to regulate or interfere with
the affairs of the producing company
/ That is matter for federal regula
ton The state commission is giver
power to fix rates and provide fol
service by the distributing companies
only These companies. the United
States supreme court held, are en-
gagged in intrastate business.
Cost to Producer.
In fixing the rates of the distribut
ing companies, the state commission
must first take into consideration tn.
price which the distributing companie
pay for the gas delivered to Mr.. Con
sumer If this gas costs the distribut
ing company thirty or forty cents
thousand cubic feet at Topeka OF Kan
sas City, the rate must be increase,
to allow for handling the fuel by tn
distributor and for fair profit to tn
| company. s% ass
Evidence offered in former ga
, hearings has shown that 25 per cen
or more of the gas delivered at cit
limits is wasted before it reachessth
, consumer. In other words the distrib
uting company buys more gas than
sells. But the company pays for tn
gas delivered by the Kansas Natural
The price which is received from tn
consumer may be based on the amour
of gas which may be delivered.
Looking at the matter in the ney
light, it is barely possible that the hap
py dreams of the gas consumers whel
+ the supreme court reversed Judg
: Booth. may not be realized when tn
gas bills are rendered. With the fix
+ ing of the rates of the Kansas Natura
, taken from state control, the stat
must fix rates for distributing com
t panies based on the price which tn
r distributing Companies pay for fue
, The distributing companies are pro
$ ducers- Neither is the Kansas Nature
Y distributor engaged in intrastat
L business. In harmonizing this situa
ton, Mr.. Ultimate Consumer may nc
e enjoy the big reduction in rates whic
s first seemed probable under the cou1
= order.
Or ne may have to buy artificis