Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1867-09-18
THE GAS BOND PROJECT.
A Veto by the May or, and a New
Suggestion.

As is known, at q recent meeting OF
the Board Of Aldermen II was decided
that the city should take 800, 900 stock
in the Gayoso Gas Company, and an
election was ordered to test the feeling
Of the citizens relative to the project
Another meeting was held yesterday
afternoon, to which the Mayor sent
message vetoing the Boards action.
This was not done through any disposi-
ton to thwart the efforts Of the new
company, but to render their success
certain, and at the same time give the
corporation a showing for its money.
The Mayor argued that "the President
of the company may exhaust his own
resources, together with the amount fur
nished by the city, and the monopolists
from whose clutches you seek escape
will then have a irmer hold upon public
and private Golfers than ever before.
The proposed subscription is not large
enough to insure the completion Of the
task undertaken. In fact, in the present
financial condition Of the city and its
citizens, failure would be inevitable"
He further argues:
Suppose the subscription made,
and that each individual stock
holder paid the sum annexed to his
name, the company would then have a
cash capital of $3.50, 000-one hundred
thousand dollars would be owned by the
city and the balance by individuals.
We are told that the Memphis Gas Com.
pany is very rich, that the stockholders
are wealthy citizens Of this city and Of
Ohio. The company has a large surplus
capital; its policy would be to reduce
the price Of gas to minimum and rem.
der stock Of the new company profitless
and worthless. Its next step would in
volve the purchase of majority Of the
stock in the new company. What guaran.
tee has the city that individual share
holders in the new company will not sell
for a good price to the old company
| Within twelve or eighteen months the
present monopoly would monopolize the
power and profits of both organizations,
and the city stock would be subjected
to the tender mercies Of those against
whom the scity has waged war. | am
sure no individual Alderman would place
himself in an attitude so unfortunate, or
| subject his private fortune to such danger.
Whatever may be your final action,
hope that such policy will be adopted
by which these patent, palpable dangers
may be obyiated.
I Having pointed out the dangers likely
to result from the purchase Of so small an
amount of stock, he makes the following
suggestion:
If the charter and the condition Of the
company are found, on investigation, &c
be satisfactory, | would suggest sub
scription of two hundred and fifty thou
sand dollars, or sufficient amount tC
insure the completion of tae works AND
the absolute control of the company by
the city. Believing that permanent and
certain relief from present evils cannot
be secured by the proposed appropria
ton of the citys credit, / make the
suggestion, which, if carried out by your
honorable body, shall receive my cordia
approval, but l am compelled to returf
the ordinance discussed without my ap
prevail
In accordance with the Mayors sug
gestion, Alderman Rufiin presented ar
ordinance ordering an election within
the time prescribed by Law, to test the
sense of the people as to the propriety
of taking s25O,OOO stock in the Gayosc
Gas Company. 1t passed a first reading
and was referred to committee of three
consisting of Aldermen Wickersham
Amis and 0'Donnell.