The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-10-14
GAS COMPANY AND
/. CITY UNABLE TO
REACH AGREEMENT
tContinued from first page)

Continued from first page)
commission specifically states that
any change in rates shall be made
by the commission after hearing.
The city is endeavoring to have
Mr.. Proutt vested with the authority
to suspend the temporarily increased
rates without a hearing and with
out notice whenever there is a diff
ference Of opinion between Mr..
Proutt and the receivers as to man
agement, plant operation or eXpendi-
ture of money.
At Wednesdays hearing there were
approximately rs persons present. or
those who spoke In support Of the
city's attitude were Mayor Paine,
Walter p. Armstrong. city attorney,
and ]. NJ. Walker, first vice-presi-
dent of the Chamber of Commerce.
Opposing the city and upholding
thef contention of the gas company
that only the state utilities commits
sion could change rate after notice
and upon hearing were w. II. Fitz-
Hugh, attorney for the receivers;
I,ovick p. Miles, attorney for the ma
iority stockholders and associate
counsel for the receivers; Henry
Wetter and DR.. H.. p. Hurt.
T. X. Riddick, attorney, declared
that the whole thing was much ado
about nothing. He agreed with the
attitude of the gas company and at
the same time leaned perceptibly to-
ward the city's viewpoint. r. M.
Metcalf, attorney for some of the
bondholders, was another who con-
tended that the city should concede
a point in order to reach an agree
ment.
Mr.. Miles, representing the owners,
stated clearly the limitations that had
been placed upon him by Mr.. W. M
Flock, president of the company
which in substance were that the
gas company would not agree to have
delegated to Mr.. Proutt or any other
one man the authority which the
law plainly says shall be exercised
only by the state commission acting
in a judicial capacity after a hear
ing,
Mr.. FitzHugh, as attorney for the
receivers, stated emphatiCally that he
would not advise the receivers to
make any agreement whereby their
authority as vested in them by the
federal court should be delegated to
a third receiver, not appointed by
the, court.
The City's Attitude.
The attitude of the city as outlined
by one of the commissioners is that
w. M. Flock, president OF the com :
pany, who resides in New YORK, Is
interested solely in return upon ms
investment; that he cares but little
about the service rendered and be-
cause of this the city wants man
Of its own choosing in complete
charge with power to penalize the
company for failure to carry out his
ideas and orders.
In reply to a question seeking 10
ascertain why the city objected to
the state utilities commission per
forming the function outlined for 1t
bv the law under which it exists,
Walter p, Armstrong, city attorney,
declared that the city did not feel
that the three men on the commits
sion, none Of whom is an engineer
or familiar with local conditions
could reach the proper decision as
could an engineer familiar with the
gas and electric plant and local con-
ditiOnS.
Mayor Paine became somewhat
agitated during the course OF Mr..
Miles' remarks, and asked why it was
that Mr. Miles had agreed to the
city's proposal one week ago and now
opposed il. Mr., Miles stated eX-
piicitly that the owners of the COM
pany had telegraphed him the con-
ditions under which they would
agree with the city's proposal, and
that was that increased rates could
he suspended .gonly by the commits
sion after hearing. The mayor
declared that he would insist upon
Mr.. Proutt having the authority TO
suspend the rate increase without a
hearing. Mr.. Miles then left the
room.
Z The arguments pro and con con-
tinued for some time Thereafter, con-
&luding when Walter p. Armstrong
Offered the memorandum prepared
INV Mr., Miles one week ago, and
moved the commission that this be
adopted. The mayor almost forgot
10 put the motion to vote hntli
!prompted to do so by John b. Ed
gar, commissioner of fire and pollce.
when it was finally put to vote,
commissioners Allen, Edgar ana
Johnson concurred with the mayor.
& The fifth clause of this memoran-
dun over which the disagreement
arose, and which was prepared by
mir. Miles before RECEIVING instruc-
lions from Mr.. kEfollows:
THE city shall request the state
commission in it's order granting the
increases to appoin6' and the receiV-
ers shall consent to the appointment
of f. G. Proutt as the representative
of the state commission so long as
permanent rates shall not be fixed
to investigate construction work
plant operations and the gas and cleo
,iric services of the receivers, 10
make recommendations in the prem =
Uses and so long as such construction
work, plant operations and measure
of gas and electric services are prac-
tically and generally in accord with
his views, and recommends said IN
creases in rates shall continue as pro
yided for in section 4, but II and
when the same shall not be so in ac-
cord with his views and recommen-
dations and Mr.. Proutt shall so elect
and declare such increases shall be
suspended"
Armstrong Wires WEIGH.
In order to ascertain whether or not
the utilities commission would agree