Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1870-02-16

PMS OayOSO 6as company Shail De ready
to furnish light by means of illuminating
gas to the inhabitants of the city of Mem
phis by means of pnblic works, such quail
ity of gas light, and in such quantity as
may be hereafter agreed on, but suffieien!
ITO supply with gas light the public lamps
erected by the city of Memphis for the
purpose Oflighting the streets of the said
city, at one-half the price charged by the
said company for The gas light furnished
by it to the inhabitants thereof on private
accOunt. 1t is expressly understood and
agreed upon between the contracting par
ties, that the said Memphis GayosO Gas
Company shall only be required to furnish
gas for public lamps along the line of the
mains, and that the corporate authorities
of Memphis are always to furnish at their
own expense their own lamp-posts and
} lamps, and other fixtures, and to keep the
same in repair. 20. The said city of Mem
phis and the corporate authorities thereof
are TO permit, without molestation or him
drrnce, the said G-ayoSO Gas Company TO
have access to, and lay down pipes and
extend conductors aud other apparatus
through all or any of the streets, lanes,
alleys and squares, to the established
grade of the same, or other public places
in the city of Memphis, in such manner.
however, as to produce the least inconve-
nience to the city or its inhabitants, and
to take up, if necessary, the pavements
and sidewalks; provided, they shall at
their own expense repairt the streets and
pavements without unnecessary delay.
Referred to Gas Committee Of Council.
MEMPHIS, TEEN, February s, 1870.
To the Honorable Board of Mayor and
General Council:
We beg leave to call you attention to
the following communication, addressed
to your Honorable Board, on November 2,
1869, and respectfully request you TO take
action on the same at your next regular
meeting:
Honorable Board of Mayor and Alder
men:
Gentlemen-I respectfully beg TO direct
your attention to the acts of your prede-
c~essors, in the year 1867, in relation to the
Memphis GayOsO Gas Company. You
will find, by reference to record book,
volume twelve, page six hundred and
five, an ordinance passed subscribing One
hundred thousand dollars stock to the
Memphis GayosO Gas Company; on page
six hundred and ten you Will find the
message of Mayor LOhand yetoing said
ordinance. Among other reasons set
forth, he deemed the amount insufficient,
and recommended that a new ordinance
be passed, increasing the stock to the
amount of two hundred and fifty thou
sand dollars. In accordance with his
views q new ordinance was passed, on
it's first reading, and referred to its
~dpDfODEldLb CDblIlibbtcs lhAS NOu Will AtiN
on page six hundred and thirty-foUr. Be
fore it could be pissed IN its inal reading
an Injunction was obtained by the old
company, restraining the city from pass
ing the ordinance or submitting the same
to the votes of the people (see City Attor-
ney's report, page six hundred and forty
ninel. | am now authorized by Colonel
Morgan, City Attorney, that the injunc-
ton has been removed by the Supreme
Court of the United States. There no
longer exists any legal impeachment
to the city subscribing what amount
of stock it may think proper to
the new company. / take the lib
erty, in brief, to point out the ben
efts to be derived to the city and citizens
by your being a large stakeholder in the
new gas company. It IS admitted by all,
and no doubt by your honorable body,
the necessity OF another company; that
the price Of gas is too high. You have
paid, for many years, 3 90 per 1000
for your gas; the citizen has paid
to the city, and 81 so to the citi-
zens. The company / represent propose
to furnish the citizens ut g co per thou
sand rect, and you at half this figure.
Now let US see what this will save you
annually: I find on reference tothe Comp
t~roller's books, f'Om July, lSGS, to July,
1869, the sum paid by you 10 the old com
pany is about 500, goo; at our price it would
be one-third less; saving at present, an
nually TO the city, say, in round figures,
about 5000; this mount would pay legal
interest, annually, IN about Sl45, 600. As
to the immense saving to the citizens it is
difficult to com oute, having no data; il
certainly must be enormous; I might say
ten, aye, hundreds of thousands of dol
lars. Look twenty years ahead. If our
city will increase in the future as in the
past, you can form some idea OF the i'm
mense saving tho prices of the new COM
pany would be 10 the city and citizens.
The existence OF a new company is de-
manded, required, and essential as a
check upon high prices and monopoly; it
must be apparent 10 your hOnOrs that ii
is clearly your duty and interest to foster
and encourage The new company. The
stock taken by you would be no burden
TO the city. The interest on the bonds
would be paid by the company. A sink
ing fund would be set aside for the re-
demptiOn of the bonds, say thirty years 10
run.
Another reason why you should have an
interest in the aew company is, to give
you a controlling or joint influence in
their directory and management, guard
ing against the stock getting into the
hands of spectators or those hostile TO
the new company, thereby always Sc
curing TO the city a voice in its affairs,
ana, in a measure, regulating the prices
of gas at moderate rates, alike fair to the
consumer and stakeholder.
The efforts made in Cincinnati for many
years, by the city, I ave no doubt are IA
miliar to many of your honorable body.
! Although gas is sold for two dollars and
twenty-five cents per thousand, he city
authorities and people are DESTROYS to get
control of the gas works. l have no de-
sire TO attempt TO influence your action.
l have underworld simply and fairly to
lay the subject before you, feeling you
will solely be actuated by the best mo
tives for the interest of the city.
Leaving the matter in your hands for
such action as you may deem proper in
the premises, l remain, gentlemen, very
respectfully,
JOHN DONOVAN,
President Memphis GayosO Gas Co.
Read, ordered published, and referred
to Committee on Claims.
PROSPECTUS OF THE MEMPHIS GAYosO
GAS COMPANY.
To the citizens CT Memphis.
The Memphis Gayoso Gas Company
was chartered IN 1866, by an act of the
Legislature of Tennessee; organized soon
after; commenced active operations in the
summer Of 1867; had progressed so far
with its work as to lay over three miles of
large gas mains in the principal streets.
The works, located at Fort Pickering,
were partially DulIJ the SdSOmeIer,S seven
miles of pipe and all the other necessary
apparatus ready for shipment; the con
tractors bound, under a severe penalty,
to have the work completed on the
25th day of December, 1867. In
the midst OF our operations we
were stopped by an injunction obtained
in the United States District Court, at the
instance of Thompson Dean, one of the
stockholders of the old company. We
deem it proper to lay before the public a
brief history of the legal controversy be-
tween the old and new companies. In
the summer of 1867, the Memphis Gas
Light Company applied to Chancellor w.
NJ. Smith, to restrain the new company
from proceeding with their work. In
their bill they claim the exclusive privi-
lege to make and veDd gas to all the in
habitants of Memphis; and, also, TO the
streets and alleys. The Chancellor, with
out hearing, refused to grant the injunc-
ton. To use the language of his fiat. {"