Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-02-24
HOMER EXPLAINS
GAS LEASE OFFER
President of Southern Gas and
Electric Corporation Addresses
Subcommittee.
WHOLE COMMITTEE TO ACT
Believed That Time Will Be
Saved by General Hearing of
Important Proposition.

Holding the opinion that saving Of
time will be effected by referring the
whole matter to the full committee. the
Public Utilities Subcommittee. to which
was referred for report the propositions
OF the Southern Gas and Electric Cor
poration Offering TO lease the Gas
Works. voted unanimously last night
TO send the papers back TO tho parent
body with the recommendation that
the full committee conduct the invcsti-
cation.
This conclusion was reached after
the subcommittee had been addressed
by Francis 7. Homer, OF Baltimore.
president of the Southern Gas and
Electric Company. who devoted n forty
five-minutc talk to the main features
of the company's proposition and the
advantages it held out for the city
and public not now enjoyed by them
under municipal administration.
WILL SAVE TIME ny
HAVING ONE HEARING
Tho motion to refer the matter to
the whole committee was made By
Councilman jefferson G. Powers, who
expressed the belief that such a course
would result in saving OF time. The
matter was important enough. he said.
10 merit detailed examination by the
full committee. Chairman Atkinson, in
a statement to The Times Dispatch on
Monday. had expressed the same view
The motion was adopted unanimously.
Chairman Mitchell. Of the Council
Committee on Public Buildings. Prop
critics and Utilities. will probably call
a special meeting Of the committee at
an early date TO set an evening for a
public hearing. /; was intimated last
night by members Of the subcommit-
tee that a number OF hearings will
probably be necessary.
Mr.. Homer. who appeared before the
Public Utilities Committee of the pre-
cedinG Council in support OF the COM
pany's hrst leasing proposition. made
an able exposition of the advantages
that may be expected TO follow the ac-
ceptancc Of OF the two pending
leasing offers. following closely the line
OF argument presented by him more
than a<:car ago.
MUNICIPAL OPERATION
PREVENTS ECONOMY
Conditions that surround municipal
operation of any utility. he said. pre-
vent as economical and satisfactory ad-
m!nistration as is possible under private
direction. Under either one OF the lcas-
ing plans suggested, he said. the city
would enjoy the direct benefits OF pri-
vate administration, combined with the
benefits that flow from municipal
ownership.
Taking recently published estimate
OF Chief Inspector Shelton that the Gas
Works would in the next thirty years
earn for the city at least $1,000 900,
Mr. Homer undertook to show by ref
ercncc TO the company's first PROPOSE
tion for an outright lease Of the plant
at annual rental of $4,000. that the
return to tho city in the same period
under a lease would be not less than
SS.00O.000.
An instance OF the failure OF mu-
nicipal administration as compared with
private, said Mr.. Homer. is afforded
by the circumstance that the ratio OF
complaints fled with the Henrico
County Gas Company. the private cor
poration that supplies the recently an
neNed northern suburbs. Is less than !
per cent q year. while the complaints
filed with the Richmond municipal
plant total 40 per cent in Il like period
COMPARES HENRICO CONDITIONS
WITH SOUTH RICHMOND
The disparity I'm aggressivencss and
trated by the fact that the suburban
company although little more than
two years old. has / 900 gas users in
population of $500. that resides in
the territory In which il enjoys fran
chise rights. as compared with about
$50 gas users that the city has been
able TO attract in South Richmond.
which has an estimated population of
from 10000 TO $1,000 The private
company's score is one out OF five,
while the city's score in South Rich
mond is one out of thirty.
Mr.. Homer made 1t clear that he had
no criticism to make OF the Gas De-
partmcnts administration. compli-
mcnting II, on the contrary. on its
operation OF n plant which is admitted
In the country at large to be the best
instances of we'll operated municipal
utility. The fault. he said lay not in
the authorities Of the Gas Department.
hut in the disabilities that are in
separable from municipal operation
CLAIMS CHEAPER GAS
AND BETTER SERVICE
The acceptance of one of the leas-
Ing ofers. he said, will mean better
and cheaper gas and better service for
the residents of the city. These and
other benefits that are promised, said
Mr.. Homer. should warrant the Council
In submitting the question of leasing
the Gas Works TO n referendum of the
people. who, in the last analysis. are
the stockholders OF the city and. as
such, have right to pass upon a
question of this kind
MFR. Homer read to the committee
written statements secured by repre-
sentatives OF the Southern Gas and
Electric Corporation from prominent
citizens. approving n reference of the
leasing question to tho people Among
those who were quoted as indorsne
such submission were: oliver !. Sands.
president of the American National
Bank: Colonel John B. Purcell. prcsi-
dent Of the First National Bank; Cap
tain Gordon w. McCabe, and w. i.