The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-03-26
Kansas Natural Shifts Burden
to the Distributors.
They Will Pay All Rebates if
Any Are Paid.
THAT IS THE LATEST OPINION
Opinion Expressed That This
Might Cause Bankruptcy.
Long Siege of Litigation in
Courts Looked For.

Kansas gas distributing companies
may be the goats n the new gas row.
With the Kansas Natural clearly from
under control of the state public utili-
ties commission, the distT ibuting COM
panies must in the future carry the
burden If a rebate of gas charges is
made. it now looks as tho it will be
the distributing companies and not the
Kansas Natural that will dig up the
money.
Attorneys in touch with the present
gas situation today declared that the
Kansas Natural is high and dry so far
as future control or regulation by the
state is concerned. The United States
supreme court seems to have merely
told the Kansas Natural that it is en-
gagged in interstate commerce. 1t held
that the distributing companies are
not agents of the Kansas Natural, that
the state function of. the Kansas Nat
ura1 ceases when it delivers gas at the
gates of the various cities and that the
distributing companies alone are en-
gagged in intrastate business.
Must Fight for Rates.
Under the old gas rows the Kansas
Natural carried the burden. 1t sought
to establishing that the distributing
companies were agents of the produce
ing company and that both were en-
gagged in interstate commerce. The
supreme court has held that only the
control. Now the distributing com
panies must band together and make
their fight for rates.
In short the supreme court decision
seems to mean that the Kansas Nat
ural can make such rates as it deems
| just and compensatory and that the
| distributing companies may make
such rates as the state commission APP
proves. Under this ruling the Kansas
| Natural has no further worries. es-
peciaily so long as federal court does
not set aside its rates.
1t is denied that the supreme court
| has ordered a rebate of excess gas
| charges. In fact it was asserted to-
| day that the supreme court decision
does not go to the question of just
rate or attempt to pass on rates now in
| Might Bankrupt Companies.
| If u rebate is finally ordered-which
is now seriously disputed-it will prob
ably be the distributing companies and
mot the Kansas Natural that must dig
up the money. 1t is asserted that the
,piling up of an enormous rebate claim
against the distributing companies
would bankrupt some of these corpor-
| ations. Just what action the courts
might finally take in the matter is al
| so a problem. The rights of bond
holders would also be taken into con-
| sideration. An action by the bond
| holders to foreclose on their claims
| would have a decided tendency to
| leave the individual consumer with a
| rebate claim on a limb.
| The one question which seems to be
clearly settled, tho, is the placing
| of the further Responsibility on the
| shoulders of the individual distribut-
ing companies There is little chance.
| lawyers believe, to esta blish that the
| distributing companies are agents of
| the Kansas Natural. This claim is es-
| tabished by the fact that in suits
against the Consumers Heat, Light &.
Power company of Topeka and other
| distributing companies that the Kansas
| Natural was not made a party to the
suit and that no contention was made
THAT the distributing company was an
| agent for the producing corporation.
| Under the present situation the dis
| trlbuting companies may be facing a
| long season of litigation. But theKan-
| saS Natural seems to be sailing
| smoothly 1t can wish the public util-
tiles commission and the state admin
| lstration Merry Christmas and fix
such rates as it desires. And the dis
| trihuting companies can fight the bat
ties and pay the court costs and lawyer
| fees