Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-02-02
NEW OFFER IS MADE
T0LEASE GAS WORKS
Company Would Pay Annual
Rental of $4,000 and Cut
Price to 80 Cents.
CITY NOW CHARGING 80 CENTS
Proposition Binds Company to
Spend Large Sum in Max
ing Works Efficient.

Through Councilman n. l.. Peters. of
Clay Ward, the Southern Gas and
Electric Corporation, Of Baltimore.
last night filed with the Common Coun-
Gil second proposition looking to the
leasing OF tn" municipal gas plant to
the private company OF basis com
bining the elements of municipal
ownership and private control.
The offer, as submitted to the Coun-
Gil. is signed by Francis r Homer,
president of the Southern Gas and
Electric Corporation. who. when the
company's first proposal was being
considered by the Council in 1913, APP
peared in person before the committees
to support the proposition.
The petition was referred to the
Council Committee on Public Buildings
Properties and Utilities. which Will
probably announce shortly a date for a
public hearing, when proponents OF tn.
measure will be given an opportunity
to explain their offer in detail.
PROPOSES SUBMISSION OF
QUESTION TO VOTE OF PEOPLE
In the preface of it's newest com
munication, the company assumes that
the only question that the Council can
matter OF leasing the Gas Works shall
or shall not be submitted to the peo-
pie of Richmond. In order to satisfy
the Council of the substantial merit
OF the proposition that would be forth
coming in the event that the citizens.
after proper action by the Council,
should authorize a lease. two alternate
propositions are presented
ig S,ih St.,u ia11 ha
same as that made by the company to
the Council on September %, 1913, and
which was never reported by the Com
mittee on Public Buildings, Properties
and Utilities. although the committee
held several lengthy hearings. 1t pro-
vides for the leasing of the Gas Works
for period of thirty years at n
rental of $4,000 a year. plus tax
OF j per cent on the annual gross
receipts, the rental to be in lieu of
interest and all city taxes on the gas
plant as now constituted or later en-
larged.
WILL SPEND sI.O00.ooo
TO MAKE PLANT EFFICIENT
II this proposition is accepted, the
company undertakes TO eNpend $1,000
600 In bringing the plant and distribu-
tion system to the highest standard Of
efiiciency. and guarantees 10 spend
100000 OF this amount within :he first
three years. At the expiration of the
lease the extensions and enlargement s
are 10 be taken over by the city at a
fair valuation.
An integral part of this proposition
is the company's agreement to put into
effect. at the expiration of one year
from the commencement of the lease.
reduced schedule of gas rates. be-
ginning with. an S0-cent rate for do
mestic consumption. TO be reduced
with ten years to 30 cents 900 For
mest!c consumption. to he reduced With
In ten years 10 40 cents per 1000. For
sliding scale. beginning with 50 cents
ana railing TO 20 cents per 900. accord
ing TO the volume of. gas consumed.
The rate TO the city. from the accept
ance of tho lease. is to be 40 cents
per 1000. The city is now charging
90 cents
PROPOSITION
SHARES NET EARNINGS
This was the proposition which was
considered by the Council Committee
on Public Buildings, Properties and
Utilities, of the preceding Council. and
which found so little support that it
never emerged from committee.
The alternative proposition now pro-
posed by the company offers to lease
the Gas works for term of thirty
years under an agreement which in
cludcs these principal conditions:
The payment to the city annually
of 100000 out OF the net earnings
realized from the operation of the Gas
Works. the amount to be i'm lien of
all interest and all city taxes ON the
gas plant as now constituted or here
after extended, including it's distrihu-
tion system.
In addition. the company agrees Ia
eXpend, as promptly as reasonablv no.
sible, and ut all events within three
years. such sum as may be necessary
to bring the plant and distribution svs-
TEN to the highest state of efficiency
the preliminary estimate being tha,
this outlay shall he not less than 81
100000. and, in view OF annexation
probably considerably more.
After the payment of 100000 renta,
specified in this proposal and interest
on the fairly expended OUTLAWS for en-
largements. 1t is proposed that the re-
naming surplus profits be divided
equally between the city and the com
pany At the expiration of the lcas.
Dettermcnts are to be taken over by
the city at an appraisement of their
actual value.
In this proposal the company agrees
TO comply with any standard of quality
OF gas set by the State Corporation
Commission, and In the absence of such
regulation to adopt the standard re-
Gently adopted by the Public Service
Commission of New York State. Further.
the company offers to give n bond of
100000 for the satisfactory perform
ancc OF the term of the lease. I'm the
second proposition no mentin is made
of the price that is to be charged for
gas.
MI l1,a.