The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-09-26
Baltimore Company Is
Willing to Pay $4,20O,-
600 for 30 Year Lease.
FURNISH GAS AT
rs AND 80 CENTS
Proposal of Southern Gas and
Electric Corporation Goes to
Council, and Must Be APP
proved by People-Plan
Meets With Decided
Opposition.

The competitive gas situation took
now and unexpected turn yestei iay
with tho nling OF communication by
the Southern Gas and Electric Corpor-
alton TO the Council and Administra-
tive Board Offering TO lease the City
Gas Works at an annual rental or
$4,000 plus . per cent OF the gross
receipts.
The Southern Gas and Electric Cor
poration, of Baltimore. is the holding
company for the Henrico County Gas
Company. which now supplies Ginter
Park. Highland Park. Barton Heights
and other northern suburbs. In addi-
ton to the local plant. the Baltimore
company controls also the gas nltili-
ties I'm Suffolk. Sumter. :. o. ana Blue
field. w. Va 1t is capitalized at $2.-
100000.
Besides the interests Just enumer-
ated. the Baltimore company has re-
Gently become Interested In the pend
ing application Of the Manchester
Light, Heat and Power Company Tor
a thirty-year extension Of its fran
chise to manufacture and supply gas
on the Southside.
Unexpected Turn.
subcommittee OF the Committee on
streets composed OF Councilman
Moore. chairman: Councilman Wonder
lehr and Alderman Gunst. has Tor some
lime had under consideration inc ap-
plication of the Manchester Lish''
Heat and Power Company for thlrty-
Year extension of franchise, and met AT
I o'clock Yesterday afternoon TO hear
q statement from the companys couh-
sol Instead OF addressing h'msett 10
the franchise application Attorney a.
H. Sands, for the company. mace 'he
formal request that all applications oi
Ms company be held in allowance ui't't
me Council passes upon the oHcr OF
m. baltimore company To lease the
whole citye plant. -
N the lease Is made, Mr.. Sands told
the committee, the pending applica-
tiop. ns well as the lease which the
Manchester company holds. Will be
surrendered. The deal, he saio. VIII
also carry with II the surrender OF
,he franchise held by the Henrico
County Gas Company.
Thc committee held that II had no
au,horitv to enter upon the considera-
lion OF the leasing proposal, and upon
:, motion offered by Councilman Won
derlehr. laid the pending application on
the table and adjourned tc ince' again
at the call OF the chair.
Plnn Gets Little Approval.
without exception. Councilmen VINO
we're interviewed yesterday with re
gard to the Baltimore company oAc'
10 lease the Gas Works. expressed uh :
qualified disapproval OF the plan me
nronosal is the fifth or sixth Of It's
kind since the city has owned IT'S Gas
Norks one Councilman said that ne
.o,,d under no circumstances vote TO
sell or lease the plant. which was one
OF the citys chief assets as a money
maker and az basis for credit
THE city could make no greater
mistake. In my opinion. than to lease
the Gas Works for thirty years sa'u
Superntendent Knowles. our output
ia increasing by hundreds OF thousands
cubic feet annually. and no man living
can tell TO what proportions II VIII
grow I'm the next twenty or thirty
years"
Mr.. Knowles declined to go further
into the matter at this time. put ihdl-
Gated that II the proposal should reach
tho Council he would have further
statement to make. lie was not Sc
riously Impressed with the probability
OF the city's parting with its valuable
gas property for even term or years
Must Go Before People.
Section 10 OF the City Charter pro-
yides that there shall be no lease or
sale Of the City Gas, Water, or Electric
Works unless the proposition shall first
be submitted to the voters OF the city
of Richmond at some regular election
and receive n majority OF all votes cast
1T such election"
Assistant City Attorney George
Wayne Anderson, when asked as to
tho machinery of submission. said that
the prospective lease would nave 10 De
submitted in the form of joint reso-
luton or ordinance to tho Council, and
N. II passcd, with the recommendation
that the Judge OF the HustinSs Court
order a special election for the purpose
OF ascert:iining the public will
Attorney SendE, representing both
tho Manchester and Baltimore compa-
mics said that In his opinion tho city
chartor did not clearly define tho
course to bo taken. and that he Will
ask that the matter be submitted to
the City Attorney for ruling as to
M
DuplicntiOn Not Economic.
with the permission OF the commit
tee. Mr. Sands read to IT the offer OF
the Southern Gas and Electric Corpora
ton, prefacinS Ii with statement of
the considerations that led 1t to make
tho OFFER. The company realized. he
said. that duplication OF plants In
wolves an investment that must be
taken care of by tho public, and is.
therefore, unsound economically.
In the belief that the city would
welcome an arrangement that would
reserve to 1t It's rights lessor. and
Mt the Same time make possible the
.upplyinE OF gas Mt Il cheaper rate
than that now charged. the company.
said Mr. Sands, was moved to offer
to lease the city's holdings. commit
ting itself to supply gas at so cents
for tho next ten years. and at rs cents
for tho twenty years succeeding. The
city price Is 80 cents.
Should the leasing OF the property
be erected, said Mr. Sands. the COM
many would retain in it's employ nll
the present officers and employees OF
tho Gas Works. 1t would also take
over all existing contracts made by
the city of Richmond.
Time to Consider Change.
.Richmond has reached her cross
roads on tho gas situation" said Mr.
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