The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-05
TEXAS MOVES
TO BRING GAS
INTO MIDWEST
ICkeS Expects Request for
S5O,OOO,OO0 Loan for
Pipe Line.
HELD BLOW TO TRUSTS
Surprise Development Set
With ProbeTS' Demand
for u. S. Quiz.
HELD BLOW TO TRUSTS

The Indiana Senate, at the re-
quest Of the legislative committee
probing natural gas manipulations,
this afternoon voted unanimously to
ask the United States Senate &c
investigate the entire industry.
At the same time, as bolt from
the blue to all investigators and
others interested in the natural gas
situation in this area, in Washing
ton Secretary of the Interior Har-
old Ickes was announcing that he
expected the State of Texas to file
an application for q Public Works
Administration loan and grant TO
finance a pipe line to carry gas
from the Texas Panhandle to st.
Louis and Detroit. This line would
necessarily go near Indianapolis.
The project, expected to cost be-
tween S3O,0O00O0 and s50,N0,000,
would carry to midwestern cities
approximately 1000 100000 cubic
feet of gas now being wasted daily
in the fields.
The project" Mr.. Ickes COM
mented. has two obvious benefits.
In the first place it would utilize gas
now being wasted in West Texas,
and would make possible the selling
of fuel at considerably lower gas
rates in St. Louis and Detroit"
Move Distinct Surprise
This revolutionary proposal, en-
tering a state government into a
public utility field against compa-
MES that are charged with being
monopolistic, came as a distinct sur
prise here.
In asking Senate Intervention, the
Indiana committee followed the
lead of an association of middle
western mayors who met in Column
bus last month.
United States Senator Gerald P.
Nye (R., N. d. at that time said
he would introduce into the Senate
a resolution calling for complete
investigation of the industry, center
ing about the receivership action Of
the Kansas Pipe Line Co.,
Wilmington, Del.
Nye Charge Is Recalled
Senator Nye said then:
"An astounding brief in this case
has come to my attention. 1t pre-
sentS a picture of such utility baronS
as the MorganS, Philip G.. GoSSler,
president of the Columbia Gas and
Electric Corp; Henry L. Doherty
and Christy Payne of the Standard
Oil New Jersey up to their necks
in a utility cesSpoOl of their own
creation.
Briefly, one Frank P. Parish, for
mer independent natural gas pipe
hne operator. committed the extreme
indiScretiOn of attempting to buck
Mr.. Doherty. Mr.. GoSSler, Mr.. Payne
and other Wall Street oveTlords,
and the brief tells the story. Those
facts. admitted and unchallenged by
attorneys for the natural gas baronS,
alone justify a sweeping mveStlga-
ton"
Today Luke Scheer, an agent of
minority stockholders Q fthe Mis-
Kansas. who are fighting the
receiverShip, gave the Indiana COM
mittee his version of the affair and
told how indianapolis once was a
factor in the Whole negotiations and
could once have had the cheap nat
ual gas it now is fighting to get.
Offered City Chaep Gas
He said that, in 1881. the Ken
lucky Natural Gas Corp, then a
subsidiary of the NIisSouri-KanSaS
Pipe Line Corp. offered to build a
belt pipe line around the city to
supply natural gas from the Ken
lucky fields to manufacturers.
With this pipe line around the
CITY" Mr.. Scheer told the legisla-
tors. Kentucky Corp. could have
put gas at the city gates at IS cents
for each 1000 cubic feet. I am not
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