Alma record., 1920-02-19
STATE TO HANDLE
GAS PROPOSITION
Franchise Revocation by City
Commission Now Seems
a Certainty
ORDINANCE WAS INTRODUCED
Mayor Calls for Public Hearings
That Opinion of Taxpayers
May Be Had.


are made by the people Of Alma at
two public hearings to be held at the
commission meetings during the next
two weeks, it is practically a certain
ty that the city commission will re-
woke the franchise of the Gratiot
County Gas Company, and then join
with the officials of the concern in
making an appeal to the Michigan
Public Utilities Commission to es-
tablish fair gas rate for the corpo-
ration.
This decision on the part of the
majority of the commission, which
may be changed by the events of the
next two or three weeks, has been
reached after weeks of argument on
the question, and has been made that
the gas proposition may be disposed
of one way or the other in the very
near future.
The confession" Of the company,
as Commissioner Creaser termed it,
which was received from the com
pany last week and placed on file,
which admitted that the company had
not kept, performed and executed all
Of the terms of its franchise granted
in January Of 1913, and granted the
waving Of the ninety day clause in
the franchise in regard 10 its revo-
cation, was spread on the the records
on motion Of Commissioner Glass,
and was followed by a resolution Of
fered by Commissioner Chick that
whereas the Gratiot County Gas Co.
had filed its admission of default un-
der the present franchise, an ordi-
nance be- adopted revoking the fran
chise.
Commissioner Chick then intro
duced the proposed ordinance to re-
woke the franchise, which was placed
on hle, and will have its first reading
before the commission next Tuesday
evening.
There was a long discussion Of the
matter before the resolution was put
TO vote and the proposed ordinance
filed, and while secmingly every
meber OF the commission was in
favor of the action commissioner
Creaser objecting to supporting it
until the city attorney was present
to go over the legality Of the matter
It was pointed out that the city at
torney, James G.. Kress, had rawn up
the resolution and ordinance. but the
commissioner was obdU ate, continu-
ing his stand that the matter should
rest until Kress could be present, and
advise in the matter. His was the
only vote against the resolution or
the introduction Of the ordinance.
Mayor Charles r. Murphy stated
that he would issue a call for a pub
lie hearing on the matter at the next
TWO meetings of the city commission
that a full expression Of the citizens
of Alma in regard to the matter
might be obtained. before the final
action on the proposed ordinance to
revoke the franchise was taken.
If the franchise is revoked, it is
extremely probable that a joint reso-
luton will be passed by the city
commission and the officials of the
Gratiot County Gas Company, asking
the Michigan Public Utilities Com
mission to step in and fix rate for
the company.
The proposition which is now up
before the city commission started
some few weeks ago, when r. b,
Wagner Of the Gratiot County Gas
Company, appeared before the city
commission and pointed out that the
company was not only desirous of
making some improvements, but that
the improvements were badly needed
to allow the company TO take care Of
the demands which ,--ore Being MADE
upon it for service. ;;e stated that
these improvements would cost
around $780, 900, and that the company
could not borrow the money because
of the temporary rate which it nov
has, under which interest on the bor-
rowed fund could not be guarantee
He then asked that the rate be made
permanent. so that the company
could make extensions needed to bet
ter supply the people.
Following an investigation it was
brought out that perhaps the best
way to handle the matter would be to
revoke the franchise and take the
matter Of the utilities commission for
decision.
The action of Tuesday by the city
commission is the first step in this
direction.
II is now expected that Manager
Wagner of the Gratiot County Gas
company will now take up the matter
with Ithaca, st. Louis and Brecken-
ridge. the three other communities
that the gas company is now serving,
and ask that the councils in those
places take the same action that is
being taken by the city commission
in Alma.
CDI,f.faV GEDxrIrE