The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-07-17
GAS TO A DOLLAR

Continued from Page one)
which is so per cent less valuable than
natural gas.
II regret Exceedingly the necessity
for an increase of the 80 cent rate.
had hoped the court would find that
the Kansas Natural could earn a re-
turn on it's investment under a rate
at the city gate not exceeding 80 cents.
ut is positively certain the distribut-
ing companies cannot earn an ade-
quate return on their investment and
pay IS cents at the city gate under an
80 cent rate and as a necessary con-
sequence there must be an increase in
rates. This 1 regret more than 1 can
tell you, because the increase in the
cost of every commodity that goes into
household use has become so common
that people are weary and disguised.
They especially object If the increase
is to a public utility. Yet any other
course will work confiscation of the
property of the distributing companies
and continue the disastrous condition
that has existed in Topeka for years
resulting in the impoverishment and
bankruptcy of the company"
At Less Than Cost.
1.-The difficulty is, people have been
getting this gas for much less than it
has cost the local company to distrib-
either to the local or the pipe line
companies. This, of course, has re-
suited largely from adverse commits
sion rulings and the people must now
come to a realization that the day of
free service is ended. 1t ended when
the government began operation of the
railroads and other business enter
prises." q
Doran stated the Kansas Natural
was not under public utilities control.
He doubts the ability of the commits
sion to secure court approval of an
attempt to regulate interstate business
by controlling interstate rates. Com
corning this position Doran said: =
81 believe the public utilities COM
mission is contending-altho I do not
understand how 1t can believe such
contention--that it still has the means
of controlling the charge by the Kan
sas Natural. 1t contends that 1t has
the power to limit the price paid for
gas as an operating cost of the dis
tributing companies This theory in
evitably leads to state regulation of
interstate commerce and will, in my
Judgment. not be tolerated.
Engineer To Topeka.
"If I am correct we must assume
that the cost of gas as fixed by Judge
Booth at the city gates, is the basis
on which the distributing companies
must build their rates. Accepting this
cost, we must have our plants valued,
deduct from the reproduction cost the
depreciation and on this, plus the
value of the property as a going con-
Germ, we will be entitled to earn a
reasonable return. This will compel
payment by the consumer of not less
than one dollar and it may be more
My company proposes to send here
the most experienced engineer they
can employ to value the property and
| to ascertain the lowest rate that will
be necessary to earn a reasonable re-
turn. We propose to present this
showing to the public utilities com
mission as soon after July 80 as pos
sible. shall demand a separate trial
on behalf of our company. as 1 think
every company has right to make
| its own showing. Each company
rate must be fixed upon the peculiar
facts of its business"