The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-02-02
WOULD PURCHASE Or
LEASE CITY PLANT
PROPOSITION is MADE TO TAKE
OVER RICHMOND GAS
WORKS.
MAKES SECOND OFFER
SOUTHERN GAS AND ELECTRIC
CORPORATION ANXIOUS TO con-
TROL RICHMOND's GREAT
PUBLIC UTILITY.

Tho Council Committee on Utilities
will he called upon at its meeting to-
night to consider proposition from
the Southern Gas and Electric Cor
porati n. of the NorthSide. for the
lease or purchase of the city gas
plant. y similar proposition was pre-
scented Council two years ago.
The paper was introduced by Pres-
dent Peters. Of Common Council, at
the meeting of that body last night
by request, and was referred to the
Committee on Utilities, which branch
of Council meets in regular session at
O'Clock tonight. Here is the prupo-
sition in full:
To the President and Members or the
Common Council of the City OF
Richmond.
Richmond, Va
Gentlemen -On September "a,
1913, the Southern Gas and Electric
Corpora ton made 10 you and through
you to the city of Richmond, an or
fer to lease the Municipal Gas Works.
This offer caused much discussion.
both among the citizens and on the
part OF the press. but the matter was
not acted upon by the recent Council,
We fully understand hat the only
question which can he determined by
you at this time tn whether the mat
ter OF leasing the Municipal Gas
Works shall or shall not be submitted
to the people of Richmond, but APP
prehend that YOU would not be in
clined to vote in favor Of doing SO I'M
less satisfied that In the event OF the
citizens of Richmond authorizing a
lease n proposition Of substantial
merit would be Forthcoming. We are,
therefore. making herein alternative
propositions.
The first is substantially the same
as that orevie usly made by the South
ern Gas AMI Electric Corporation.
The second is an alternative propo-
sition whereby the city will. for all
interests and purposes. nave all Of
the benefits Of a partnership arrange
ment with the Southern Gas and Eiec-
trio CORPORATION without any of the
risks and burdens incident thereto.
and is in line with what is rapidly
being regarded as the ideal arrange
ment for establishing the best rela-
between the municipali and
the agencies providing II with public
utility service, In that the mutually
Of interests becomes u guarantee OF
harmonious cooperation. 1t repre-
adopted by New York city in con-
cago IN connection with It's traction
lines and compares with recently
adopted Arrangement between Hous-
ton. Tex, and it's electric light COM
pany.
Proposition No. I.
/. We hereby offer 10 lease the r1u-
nicipal gas plant of the city OF Rich
mond for a period OF thirty 600
years. at an annual rental Of one
hundred and forty thousand dollars
(si40, 00o). plus tax OF one per
centum Il per cent? on its annual
gross receipts, ard said rental TO be
in lieu of interest and all city taxes
on the said gas plant as now consti-
tuted and hereafter extended or en-
iarged. including its distribution sys-
tenn. In other words, excluding the
gross receipts tax. We will pay as
rent FOR the use of the gas plant for
thirty 900 years, four million. two
hundred thousand dollars (s4, 200. 0oe)
in thirty ts0l annual ins.allments.
.. We Will agree to spend, as
promptly rs reasonably possible, and
at all events within three years, such
sum or sums as may be necessary TO
bring the plant and distribution sys-
tenn to a condition of the highest
standard Of efficiency necessary for
with the best possible service. Our
estimates indicate that this Will In
volve an expenditure Of not less than
81. 900, 600, and. in view of the re-
cent annexation possibly considerably
more. We will guarantee to spend at
least s50o,o a0 within the first three
years
8 We will agree to comply fully
with any standard of quality for gas
and service which may from time TO
time be reasonably provided by the
Corporation Commission of Virginia,
hut, in he absence of such legislation.
we are willing to accept the recent
standard established by the Public
Service Commission of New York
State for the Second District.
T. At The expiration of the lease. we
will turn over 10 the city of Rich
mond. at Il fair valuation, the physi-
cal property included in additions ex-
tensions. engagements and better
ments which we may have made dur
ing the term Of the lease. and in or
der that no controversy may arise In
respect thereof. we suggest that the
lease contain provision for the APP
praisaI OF the municipal plant and
an inventory of the property turned
over at the beginning of the lease,