The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-07-24
Petition is Filed in Federal
Court in Topeka.
SHOW UP KANSAS NATURAL
Misrepresentation of Facts and
Costs Is Charged.
and Duplication Used
To Influence Court.
AN ULTIMATtM.

TO the court and here now in court serve
notice on the receiver that they hereby
reject and refuse to take. receive and pur-
chase gas from said receiver or the Kan
sas Natural Gas company upon the terms
tached and here now in court ench sew
orally for themselves Respectfully state
that they will from date hereof continue
to accept. receive and pay for such gas
rs the receiver furnishes and delivers into
their respective distributing systems the
compensation provided for IN the order
of this coIrt on Nov. 10. 1918. approving
said rate known MS the so cent rate for
these distributing companies"
Missouri gas distributing companies.
Gas distributing companies of Kan
sas and Missouri today went on a
strike. They refuse to buy gas from
| the Kansas Natural under Judge
Booths recent order. Notice is served
on the federal judge that no gas will
/ be purchased unless the former rate
schedule is restored.
! All of the natural gas distributing
companies in Kansas and Missouri
which rely on the Kansas Natural for
supplies. Joined in the petition to
Judge Booth. They charged-that ex-
penses of the Kansas Natural were
misrepresented. inflated and duplicat-
| ed. They also ask the court for an
accounting between the Kansas Nat
ural. and the Doherty interests. Fur
ther assertion is made that the anna
torization charge of the Kansas Nat
ural receiver is excessive and that de-
probation charges are carried against
properties wiped from the books three
years ago.
] First Breach i'm Ranks.
The action of the distributing COM
panies today is the first breach in the
ranks of natural gas interests since the
rate rows and receivership troubles
started in 1911. Distributing COM
panies ask for relief from the 35 cent
charge which the Kansas Natural
seeks at the gates of various cities
In the statement as quoted above
the distributing companies make a
virtual declaration of independence
They assert that they cannot and
should not be compelled to pay the
new charge which carries with IL an
order from Judge Booth that dis
tr1outing companies absorb all Leak
age.
For Topeka and all towns north of
Pittsburg, the distributing companies
ask rate at the hands OF the Kan
sas Natural of rs cents a thousand
cubic feet They ask that the present
80 cent rate to consumers be made to
apply upon approval of public utili-
souri,.
Try To Protect Public.
1t is to protect the public against
an enormous increase in gas rates
that the petition is filed, 1t is asserted.
1t Is also declared that enforcement
of the Booth order means enormous
! financial loss to the distributing COM
panies.
Complaint is made that Judge Booth
entered his decree without investiga-
IA ki kir1o of CT ~, n-4-.
as to the interests of the distributing
companies. 1t is also charged that
the statements of the Kansas Natural
|, receiver grossly misrepresented facts
and conditions Distributing COM
, panies deny the claim that the Kansas
, Natural buys 1880. 900 cubic feet of
gas day and markets but IL million
cubic feet. 1t asserts that supply
claims are based on old records and
not existing conditions.
Claims of the Kansas Natural that
II pays 16 cents for gas is severely
attacked in the petition. In this mat
ter the distributing companies threat
len to bring before the public q num-
Der of facts which were not previously
OF general knowledge. 1t is claimed
that the gas bought by the receiver
costs but and 10 cents instead of / 8
cents. The l6 cent charge is alleged
to include not only purchase price,
but operating expenses, taxes and de-
probation. 1t is also charged that
y ministration expenses are charged to
; the Kansas Natural statement carried
= a duplication of depreciation charges
Of the gas company and the Marnett
Mining company. a subsidiary.
Further Charges.
Further charges are made by the
distributing companies that the Kansas
= Natural filed statements which pro-
vided for depreciation charges on gas
leases exhausted in 1910. These ac-
counts. it Is asserted, were held to be
Y worthless under the creditors agree
n ment. Abnormal litigation and ad-
r have been included in the statement
e made by the Kansas Natural.
o Claims are also made that the pro-
ducing company has opened new gas
e fields These fields have greatly in
I creased supplies. 1t is stated. and
: should reduce the cost of gas to dis
. tributing companies and to the con"
n sumer-
e An accounting of the Kansas Nat
i ural and Doherty affairs Is asked. IL
is charged that Doherty sold gas ia
the Kansas Natural at 10 cents and
. | charged 6 cents for transporting the
fuel to the latter's pipe lines. Instead
Of benefiting Kansas Natural consum-
ers. II is declared that the CONTRACT
y has been q hardship. It is charged
that the Kansas Natural sold gas to
Doherty's during the severe months,
0 receiving hut cents for this supply.
? Action They VIII Take.
3 It is further claimed that the ems
v tire Kansas Natural plant has been
n amatorized except 32.s73.0oo. Tbs
lContinued on Page 1wo)