The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-03-17
L. S. Supreme Court Allows
State Control of Local Rates.
May Restore Original Price to
Towns Thru Kansas.
OLD GAS WAR THROWN OPEN
Injunction Against p. Z. c. Dis
solved in Decision Today.
Consumers Will Be Entitled to
Rebate of Excess Payments.

Washington, March 17.-Federal
court DEGREES holding that the Kansas
Natural Gas company and its subsid-
iaries are engaged in interstate COM
merce and enjoining Missouri ana
Kansas state and municipal OFFICIALS
from interfering with rates flXed py
the court of the distribution OF nat
ural gas, were set aside today py the
supreme court.
Iniunctions restraining the Kansas
state public utilities commission from
fixing the rate in that state at Zo
cents per thousand cubic feet ana IN
effect setting aside rates prescribed IN
franchises granted by various munlc-
ipalities in Missouri were dissolved py
the supreme court.
In deciding the case the court IN
unanimous opinion held that the COM
panieS were engaged IN interstate
commerce in bringing in thru pipe
lines gas from Oklahoma, but after
delivery to the local companies the
business became intrastate.
The proceedings were brought by
John NJ. LandOn as receiver Tor the
Kansas Natural Gas company who al
legged that the rate fixed by the KAN
sas commission. was confiscatory. In
sustaining this contention the lower
court decided that the company was
engaged in interstate commerce and
that the commissions order was a
burden upon it.
Kansas City, Mo. and seven other
cities in that state consume so per
cent of the company's output while
the remaining 40 per cent is used by
thirty-seven other cities and towns in
Kansas.
State public utilities commissions
may again regulate rates of the KAN
sas Natural distributing company un-
der the decision today of the United
States SIInrRne court. The court fur
ther dissolved the injunction issued by
Judge Wilbur Booth, who restrained
the enforcement of the 2S-cent gas
rate. This action may restore to KAN
sas and Missouri towns the original
rates ordered by state commissions.
Today's court decree means millions
of dollars to natural gas consumers of
Kansas and Mis-. ouri. The decree lifts
the injunction which has been in ef-
feet nearly two years. 1t is also as
sumed to wipe out the increased rates
allowed by Judge Booth at Mime
apolis in October. 1917. and likewise
destroys the supplemental increases
allowed the Kansas Natural and dis
tributing companies.
Entitled to Rebate.
Consumers of natural gas will bt
entitled to a rebate of all money they
have paid to gas companies in excess
of the old 2S cent rate, since July
1916, when the injunction against tht
utilities commission was granted, de
clared Fred S. Jackson, an attorne!
in the gas case for the utilities com
mission, provided today's reports tina
the supreme court has dissolved th'
federal court injunction are official.
sustained later.
Means 2S-Ccnt Gas?
The United States supreme cour
held against Judge Booths decision
that the Kansas Natural was engaged
in Interstate commerce and that it
rates were not subject to state review
or regulation. While the full effect o
the decision in Washington today ma.
not be entirely apparent for severa
days, it is probable that the order re
stores to original ruling of the Kansa
public utilities commission establishing
a 2S-cent rate for Kansas towns. Thi
rate has been increased to so and s.
cents in a number of towns and cite
which buy gas from the Kansas Nat
ural and distributing companies.
1t was in 1915 that the state publ
utilities commission issued its origina
IS cent rate order. Following this de
cison of the Kansas Natural sought I
compromise the long drawn out cor
Natural offered to enter into a stipu
'lation to the effect that gas would b
furnished for 80 cents.
This offer was rejected by the Kar
sas commission on approval of Gov
ernor Capper. Then the gas compan
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