The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-09-26
Baltimore Company Tells What
1t Will Spend, and STIMULATES
Rate to Consumer.

The offer of the Southern Gas and
Electric Corporation to lease the Gas
works. as submitted yesterday stimuli
taneously to the City Council and Ad-
ministrative Board. follows:
L. We hereby offer to lease the mu-
n'cipal gas plant OF the city of Rich
mond for period of thirty 900 years
at an annual rental OF one hundred
ana for.y thousand dollars (Sl4O,0OO)
plus Il tax OF one per centum Il per
cent? on the gross receipts OF the com
pany, such rental to be in lieu OF in
terest and all city taxes on the said
gas plant as now constituted and here
after extended or enlarged including
It's distribution system. Wo will pay
the State taxes. II any, that mnv be
imposed; or. in other words, exclud-
ing the gross receipt tax, we will pay,
as rent for the use OF the gas plant
Tor thirty 800 years. four million, two
hundred thousand dollars (s4,2OO, oO0)
IN thirty 900 equal annual install
ments
- we VIII agree to spend, as prompt
~ as reasonably possible, and at all
events within three years such sum
or sums as may he necessary to bring
the plant and distribution system to a
condition of the highest standard OF
efficiency and enable 1t to furnish gas
OF quality equal to that being fur
nished In any of the large cities of
the country. Our estimates indicate
that this Will involve an expenditures
OF not less than 100000, and. in
view OF the proposed annexation. pos
guarantee to spend at least one-half
million dollars (S500o0o) with the first
three years.
Standard of Quality.
3. We will agree to comply. fully.
win any standard OF quality for gas
and service which may from time to
time be reasonably provided by the
Corporation Commission of Virginia.
out, in the absence OF such regulation
VIII further agree that the service and
quality thereof shall at no time fall
below the requirements provided by
paragraph five OF the ordinance now
pending before the City Council Of the
CITY OF Richmond. in respect of extern
sion of the franchise of the Manchester
Light. Heat and Power Company; or.
alternhtively, at your election, we will
accept the recent standard established
by the Public Service Commission Of
New York State for the second district
as controlling us.
4. AT the expiration OF the lease we
VIII turn over to the city OF Richmond
ut tho fair valuation OF the physical
property included in additions, extern
sions, engagements and betterments
winch we may have made during the
term of the lease and I'm order that no
controversy may arise In respect there
OF, we suggest that the lease contain
n provision for the appraisal of the
municipal plant and an inventory of
the property turned over at the begin
hinS or the lease which shall be an
neXed thereto as part thereu! and that
this shall constitute tho basis of ascer-
tanning at the expiration OF the lease
what extensions improvements. better
made.
D. we VIII agree to surrender the
Manchester Light, Heat and Power
Company franchise, both for gas and
electric lighting.
Supply Suburbs.
q. Upon the annexation Of the north
ern suburbs we VIII secure a surren-
der of the franchises OF the Henrco
county Gas Company: will annex our
the leased municipal plant and will
furnish gas in the northern suburbs at
tne same rate as herein provided for
chises now existing for the supplying
OF gas in the city OF Richmond. as ex-
tended, Will fall in without cost to the
city.
Z. AT tho expiration of one % year
from the commencement OF the lease
we will make net price for domestic
consumption OF eighty cents (s0c) per
1000 cubic feet and at least within
QO years. OF seventy-fve cents (75c)
per 1000 cubic feet. which prico shall
not. for tho balance OF the term OF the
lease, be exceeded.
sliding Price Scnle.
S. In order to induce the location OF
manufacturers within the city Of Rich
mond, and to secure q rapid growth
and development OF the community,
we will agree. within one ~ year to
provide the following sliding scale for
First 10000 cubic feet, net price. 80
cents per 1000.
Next $4,000 cubic feet, net price.
70 cents per 1000.
Next. $4,000 cubic feet, net price,
IS cents per 1000.