The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-10-14
FEDERAL JUDGE
APPROVES C|Ty'S
.GAS AGREEMENT
Cochran Wires City Attorney
He Has No Objection to
City'S Plan to Get Light and
Gas Service.

The principal objections Of the
Memphis Gas and Electric company
to the agreement submitted by the
city were swept aside Thursday when
Walter p. Armstrong. city attorney,
received from Judge A. NJ. j. Coch-
ran. federal judge, message stating
that he had no objection to the re-
ceiVers entering into such an agree
ment as Is proposed.
This message came on the heels OF
a telegram from the state utilities
commission In which they stated that
they would enter no objection. The
action of Judge Cochran and the
! state commission leaves the matter
/ squarely up to the gas company.
Failure to reach an agreement
means that the consumers OF gas
| and electricity in Memphis win he
without service. Agreement to the
proposal made by the city indicates
that the people Of Memrt.is will pay
increased gas rates temporarily, but
in return win be given full and
adequate service as soon as the two
plants can be put In condition to
handle increased business
Mr.. Armstrong; telegram to Judge
A. Nj. J. Cochran. ad interim Judge of
the federal court for West Tennes-'
see, follows:
Judge A. NJ }. Cochran. United
States District Court. Maysville,
Ky:
III the receivers OF the Memphis
Gas and Electric company, which re-
Ceivcrshin is pending in the United
States district court, here. and city
Of Memphis should agree that tenn
porary increase in rates may be had
and that clty's representative shall
be appointed representative Of state
utilities commission to supervise the
management and service and eXpen-
ditures for new construction Of re-
Ceivers. and that the temporary rate
granted should be withdrawn without
lanV hearing before state utilities
commission whenever its representa-
tive disapproves management or
| service or new expenditures Of re-
! Ceivers, and the state utilities COM
mission should agree to enter an or
! der. embodying this agreement, would
Z you have any objection to such action
on Part of your receivers .fhiS
agreement not Vet made but city
, sugg 1t Wire answer my eX-
pense Immediate answer extremely
important.
( tSigned)
"WALTER j. ARMSTRONG;
| City Attorney"
Mir, Armstrong Thursday received
/ the following reply from Judge CoCh-
ran:
Walter T.. Armstrong. C,t Attor-
ucy Memphis, Tenn;
Il have no objection To- the action
/ referred to in your telegram"
( tSigned) "A. NJ j. COCHRAN"
/ Whether the state utilities COM
mission or +, G. proutt. as repre-
sentative OF the commission. should
have the authority to suspend tenn
, purarily Increased rates constituted
\ he difference between the Memphis
I Gas and ElCctrlr company and the
city Of Memphis at the r"hliC hear
( ing Wednesday afternoon.
Unless there is an agreement be-
! tween them resulting in immediate
! rehabilitation Of the plant and in
! SpaSed revenue to the company
I a adequate service which Is needed.
Al the hearing both sides agreed
10 the appointment of Mr.. Proutt in
Il supervisory capacity. that the ma
iOtity owners OF stock should pur
chase the receivers certificates and
t thai immediate steps should he ta-
/ ken to Improve the gas and electric
I plauts but representatives Of the
! owr1rs of the gas tomrany contend
ed tAat the iaW creating the utilities
Continued on Page l3, Column H.