Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-06-25
PURCHASE OF GAS
PLANT IS FAVORED
BY CITY OFFICIAL
Owners of Franchise Admit
Deal Is Ready for Con-
summation.
ASK UTILITIES COMMITTEE
TO CLOSE NEGOTIATIONS
Each Councilman to Receive Copy
of Report Made by
Director.
URGES SERVICE BE IMPROVED
Asserts That Sale OF Fuel ut Present
Kate VIII Take Care OF Operat-
ing Charges.
ASK UTILITIES COMMITTEE
TO CLOSE NEGOTIATIONS
URGES SERVICE BE IMPROVED

prospects for the purchase by tho
CITY OF the Henrico County Gas Com
nany reached high point last night,
when Director of Public Utilities Traf-
ford, al the meeting of tho City Coun-
CHS Committee on Public Buildings.
Properties and Utilities rendered re-
port favorable TO the purchase, and
a H. Sands. counsel for the owners OF
the franchise. declared that the city
and company were so close together
that he believed the deal could be con-
summated
Alderman White moved that the COM
mittee refer the matter TO the Finance
favoring purchase. but ",,E1i couneiim1m nam
umlaufs substitute motion tha; the
Utilities Committee consider the mat
ter at meeting TO be called by the
hairman prevailed. In the meantime
each member o; the committee will be
furnished with a copy Of Director Traf-
lords report.
Point. Out Conditions.
In his report Director Tranord de-
clares that II certain conditions are
the city may take over the property
and make the necessary improvements
thereto. with the assurance that the
income from the sale of gas. at the
same rate as sold in other parts of the
city, VIII be sufficient TO pay all proper
by the city during the ensuing i've
year period. The conditions referred
10 by the director are contained in his
conclusions. which are as follows:
c,r,1a. That no plan of acquiring the
s!dered unless provision is also made
for improvements and bettermcnts to
me system 10 the estimated cost OF
That in order to prevent loss to the
city city the purchase price to be paid the
exceed the sum OF $4,000. '''
That the useful physical property
OF the company, consisting of mains.
services and meters, but excluding
msed d be worh he
That In view Of the fact that busi-
ness canno, be built up without ex-
given TO the company's organization
expenses and the losses sustained in
the first few years OF operation"
Opposes Pnrchsse OF Tools.
After discussing the value of the
oompany's distribution system. the
director says: The remaining prom;
estate. buildings. plant equipment.
tools etc, is stated BY. the company
To-, 70 have cost sso,l4o5t do not think
"a The our mas
and we could not operate the cornpany's
plant proittably. Consequently, The
] do not think that larger sum than
100000 would be realized by the city
from the, sale OF this real estate and
The company recently estimated the
value of its plant and entire property
at se64.640.26. Director Trafford esti-
mates its value to the city at s23o.oOo.
but eliminating property not required
by the city brings the figures down to
$4,000. which. with the necessary
total expenditure $4,000. which will
probably be provided by floating util-
ity bonds
New Homes Require Fuel.
In urging immediate action on
the recommendation, Alderman White
stated that construction of over 100
buildings was going on every day in
the North Side, and something must
he done al once TO assure these people
Il sufficient gas supply.
Councilman Umlauf stated that he
favored giving the North Side relief,
but thought that the committee should
cordingly. 1t was agreed that Chair
man Batkins should call a special
meeting Of the committee for some day
between the next meetings OF the Com
mon Council and the Board of Alder
men.
Put Deal Up to Sands.
Alderman Nielsen asked A. H. Sands.
counsel for the company, whether or
n2to not the conclusions ;9,1n as arrived at by
agreeable to the company.
Mr.. Sands, in reply. said that he felt
sure that the city and company could
lay in the fact that Mr.. Trafford elimi-
mated the value of the real estate and
supply plant. He believed that the
company could mako a satisfactory
sale OF these parts of it's proDerty
and then it would be in a position to-
get together with tho city. He de-
clared that 119 houses were being con-
structed in the North Side, and that
his company would have to expend
100000 to supply additional demands
unless the city made the proposed
purchase.
IDIou EAhEnN nj Al nnhH