Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1867-09-14
Unsuccessful Effort OF the old to
Hnjoin the New Gas
Company.
A Lengthy Protest of the Former
Against the Proposed
Gas Bonds.
What It All Amounts To--The
Question Briefly Discussed.

that venerable institution CSC per 1000
feet, cash up and no grumbling,) has
been so seriously disturbed by the ap.
pearance of the new mains as to take
measures to close up the little shop
over the way" The other day an
injunction was applied for to restrain
the new company from further proceed
ings, but Judge VIM M. Smith failed
to perceive the justice of such an action.
He settled the question in few words:
/ decline ordering an injunction re-
straining defendants from proceeding
with their gas works, as do not see
that an exclusive privilege has been
conferred on complainant.
He, however, decided to restrain the
new company from laying their gas
pipes above those Of complainants, or
so near them as to cause injury to
them.
The injunction failing, the President
of the Company Col j. NJ. Williamson,
and the Secretary, Col. W. II. Fitch,
wrote long letter to the Mayor, with
the view of dissuading the city from
taking stock in this new company. The
document, which was read in the Board
yesterday evening, we subjoin;
0PFIoE MEMPHIS GAS LIGHT Co.,
MEMPHIS, Tenn, Sept, Il, 1867.
Hon. w. o. Lofland, Mayor of the city of Mem
phis, Tenn:
SIR: Noticing the recent action of the
Honorable Board of Aldermen, asking
you to order an election with view OF
authorizing by vote of the people, the
issuance of $780, 900 in the city 6 per
cent. 20 year bonds, and their invest
ment in stock, in what claims or pur-
ports to be the Memphis Gayoso Gas
Company, we desire most respectfully
to call your attention to o contract ex-
listing between this company and the
city, relating to the privilege of manu-.
featuring and vending gas light within
its bounds.
BY the provisions of the contract, the
Memphis Gas Light Company claim the
exclusive right to make and vend their
manufacture for the term of twenty years
from the date thereof within the city
limits, for which exclusive privilege the
Memphis Gas Light Company agreed to,
have since their existence, and expect so
long as said contract remains in force,
to furnish the public lights of the city at
one half the price the said company shall
charge majority of their other or pri-
vate consumers.
That their exclusive rights and privi-
leges to manufacture and vend for the
term mentioned, were intended to DO
guaranteed by the aforesaid contract,
your correspondents aver and argue,
upon the basis that contract for con-
sideration means something.
The right to lay gas pipes, etc, in the
streets, and TO manufacture and sell, was
granted them by their act of incorpora-
ton, but the exclusive right for twenty
years was assured by contract with the
city. Else we may ask what privilege
did the city grant ITO encourage the
construction of gas works to supply its
inhabitants and its public lamps 2" Not
the supply of gas to its public lights at
half price for this obligation was at the
commencement, and has been ever since
regarded charge against the company;
the consideration paid by the company
to the city for certain rights and privi
leges contracted for.
In calling your attention to this par
ticular feature of the contract, we desire
most respectfully to give notice that the
Memphis Gas Light Company will resist
by all legal means the contemplated ac-
ton of the city authorities, and if un
successful in resisting, will consider the
actual subscription and payment ofstock
in and to the enterprise known as, or
called the Memphis Gayoso Gas Com
pany," as an abandonment by the city
of the contract between it and the Mem
phis Gas Light Company, and that the
said company will claim an equitable
payment for all gas supplied since the
commencement of the contract, and for
all they may in the future supply; the
consideration for which they supplied
gas at half price, not being sustained
by the city, the company should
be entitled to just compensation.
1t is perhaps we'll known to your honor
that the city of Memphis has been, and |
is now, supplied with gas for its public |
lights on as favorable terms as any city |
in the South or Southwest.
From the commencement to the pres
ent, the city has not paid, even in scrip, |
an average price Of over ($2) two dollars |
per 1000 cubic feet Of gas consumed by |
her public lights; and the company has
not received an equivalent Of 81 so per
thousand cubic feet in cash
It may also appear, and will, we be-
lieve, on examination by your honor,
that the city could not now make any /
more favorable contract with any other |
than that now existing be-
tween the city and the Memphis Gas
Light Company.
Without violation or abandonment Of
the contract on the part Of the city, the
corporation is guaranteed the supply of
light for its public lamps for long term /
Of years, at less cost or price than 1t
could manufacture for lis own use, pro-
yided it should own entirely, and within
itself, a complete gas works.
II may be suggested by some interested
in the proposed scheme TO
yet SlOO. OOe from the city, that at present
here being but one company, they are
aud the city is at their mercy,
etc.
But, as shown, this is not the case, for
he city is protected by contract extend
ing its provisions for generations yet to
come unless the city shall willingly
said contract). And now, We
ask, what permanent relief is obtained
BY the creation Of another company
Every sane man who gives the matter
any reflection must conclude that there
will be btf one company in few years,