The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-05


maximum cost for distribution from
the gates 10 customers would have
brought the cost 70 no more than so
cents for each 1000 cubic feet.
Now Indianapolis has artificial
gas. Of about two-thirds TO One-haf
the heat value. at slO5 for each 1000
cubic feet. In addition 70 furnish
ing cheap gas, Kentucky then was
willing 10 sell the belt line 10 the
city at the end Of five years for
cost plus interest charges"
Political Forces Unknown
Mr.. Scheer said he never had
been able to identify the political
forces which then opposed the plan,
and said he assumed the city simply
decided it was not ready 10 pur-
chase the plant Of the Citizens Gas
Co. 70 distribute the gas.
However, he said the indianapolis
negotiations alarmed other pipe
line operators. who saw. he said,
that if Missouri-Kansas was to sue
coed in bringing low priced gas into
the region. their own rate structures
would collapse.
At that time, he said, Missouri
Kansas had a contract with Pan
handle Eastern Pipe Line Corp. its
subsidiary. to deliver 20 million
cubic feet of gas a day at its
terminus, the Indiana-Illinois line,
which would have enabled the Mis-
souri, Kansas to conduct vigorous
bidding to supply gas to municipali-
ties.
Columbia Seizes Control
But, Columbia Gas and Electric
Corp, he said, Wrested control of
the s5O0OO,OOO Panhandle Eastern
Pipe Line Co. from Missouri Kansas,
with the suit for receivership now
in Wilmington courts, and j. H.
Hillman Jr., Pittsburgh capitalist,
owed by the Kentucky Natural Gas
Corp. for pipe lines, wrested its con-
troll from the NIissouri-Kansas
group.
Now. he said, Columbia holds that
the contract MissOuri-Kansas had
with Eastern Panhandle to furnish
those 20 million cubic feet a day is
superseded ~ an alleged oral agree
ment that gas so delivered would
not be sold in a territory north of
an imaginary line drawn approx
mately 80 miles south of Indian
apOlis.
Mr.. Scheer said that an oral
agreement of that nature would put
NIiSsouri-Kansas in a position of
attempting to sell Texas and Okla
hOma gas IN a territory in southern
Indiana that belonged logically to
Kentucky fields which could supply
it there at a much lower transmits
sion cost.
Gigantic Waste Charged
If Kansas was to sell
natural gas in Indiana at all, he |
said. it would look to central and |
northern Indiana as its sales area.
These portions of the state, he said. |
are only fractionally supplied by
Kentucky fields which, he added, do
not produce volume enough to take
care of the entire area, anyway.
Mr.. Scheer said operating inter-
estS were wasting one billion cubic
feet of gas daily in the Texas Pan
handle fields and 300 million cubic
feet in the Oklahoma fields to keep
up the price. To refute operators
contentious that this gas is full of
sulphur and unfit for use, Mr.
Scheer said he had engineers esti-
mates that the gas could be washed
for 4. cent each 1000 cubic feet.
He said pipe line companies could
MAKE a profit by charging , cents
to move each 1000 cubic feet each
mile.
This information. given before
Mr.. IckeS' astounding announce
ment from Washington. tied in with
the charges and requests of Texas
as they were relayed by Mr.. IckeS.
Texas Project Outlined
The project. Mr.. Ickes said. was
to be administered by the state of
Texas. and would make possible low
gas rates in both st. Louis and De-
trOit.
He disclosed he had conferred re-
Gently with r. B. Anderson, per-
SOnal representative of Gov. James
v Alfred Of Texas regarding the
project. No formal PWA applica-
ton. however. was filed.
The project. if separate lines were
run from vest Texas to St. Louis
and Detroit, would cost $4,000 900.
The project could be constructed
with s3O.OO0.O00 if a single line were
run to Detroit via ST. Louis.
Mr.. Ickes said the Texas LegiSla-
ture planned to create a state au-
thority TO construct and administer
the pipe lines. Its proposed set up, /
he said, would be similar to the Fed
eral Tennessee Valley Authority.
Mr.. IckeS pointed out the State of
Texas could condemn land in that
state for a pipe line right-of -way. /
but the Federal government would /
have to exercise its right of eminent +
domain IN other states.
Secretary Ickes said. however. no /
legal details Of the project had been /
worked out.
The pipe line. according to tenta-