The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-10-12
Mayor Paine's Statement.

Mayor Paine Tuesday issued the
following authorized statement con-
cerninR the new agreement which
has been tentatively accepted by
both the city and the gas company;
The receivers of the Memphis Gas
and Electric company, some weeks
ago. announced that they could not
furnish adequate service in the city
of Memphis unless they obtained an
increase in rates. The city admin
istration was only interested in this
because it felt II to be it's duty to
use every possible means to obtain
proper gas and electric service IN
the city. II such service could be
assured, 1t was inclined not 70 OBJ
feet to such. an increase In rates
as might be necessary to obtain this
service. In order to insure that the
increase in rates would mean better
service. It made three suggestions, IN
substance:
r--That the owners Of the prop
erty furnish a sufficient amount or
money to install needed improves
ments as fast as possible. 1t being
suggested that approximately q hair
million dollars would be needed.
"2-That proper and efficient man
agement and expenditure OF this
of some person in whose selection
the city had voice.
"3-That all service possible, in
view of the physical condition or the
plant, be rendered. and that the ban
be lifted against no new installa-
tions,
"The receivers and the city admins
istration failed TO agree ON this plan
when first suggested, A tentative
plan has now been worked out, which
seems 10 obtain the result desired BY
the citv, In that its adoption would
insure the obtaining of sufficient new
capital to make the needed improves
ments, would give an engineer elect
ed by the city, supervision OF tno
expenditure and would give tnin
same engineer the right 10 pass on
what service shall be rendered. rms
plan Is:
1.-THE owners Of the plant are
TO furnish the money 10 purchases
S45O 600 worth Of receivers certttt-
cates. issuance OF which has been
authorized.
"2-That +. G. Proutt, engineer
now representing the city, Is TO %
appointed by the public utilities COM
mission of the state OF Tennessee as
it's representative, for the purpose
Of supervising management. serves
and expenditures.
"3-The city is not 70 oppose z
fair increase in rate. which snail
only exist until the establishment or
the permanent rate of the state utiii-
ties commission. This temporary
rate shall only be effective so long
as the quality Of the service render
ed, the method OF expenditure OF the
new money and the management OF
city engineer, +. @. Proutt When
ever any OF these things does not
meet with Mr.. Proutt's approval, the
increased rate will Immediately be
suspended.
'Whne the city Administrations
looks favorably on this plan, be-
cause 1t believes that its effect will
be to better the service, yet IL has
not definitely agreed 10 It. and will
no do so until a public hearing Is
had, and a full opportunity accorded
to all citizens and civic bodies to
be heard. With this in view, spe-.
cial meeting OF the city commission
will be held in the council chamber.
on Wednesday, Oct, 13. at p.n.s
when the matters win be thorough-
ly discussed. the proposed rates an.
nounced, and all persons interested
given an opportunity to be heard.