The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-08-27
The Gas and Electric
Situation,

Situation.
The state utilities commission has
announced that II will grant no in
crease in rates to public utilities in
Memphis unless the application for in
crease has the approval OF the city
administration. The effect Of this ruI-
ing Is 10 place responsibility for the
relief Of the gas and electric company
directly upon the mayor and city com
missioners.
There are many conflicting reports
concerning the condition OF the gas ana
electric light plants Statements that
are known to be accurate are that the
company is operating far in excess OF
its normal capacity and each day ex-
ceeding the danger line in production
and that II has not the equipment 10
install In new enterprises and Is I'M
able to assume the additional burden
that would be imposed upon It II 1t
should extend its service to residences
that are being completed. other state
ments concerning the condition OF the
plant may he verified or disproved by
reference to figures and records that
are readily available.
This paper Is no corporation batter.
IL realizes the value OF efficient and
well-equipped public service enterprises
to a community. 1t has always en-
deavored to protect the rights OF the
public whenever It believed that cor
poration was endeavoring TO grab
franchise, use a techncality in further
ance of its designs or otherwise take
advantage of the people, This has been
the attitude OF The News Scimitar and
1t will continue to be.
The gas company presents new sit
uation We do not advocate an in
crease in rates. We do not know that
the company is entitled to an increase,
but II the company is operating at a
loss and II by reason of this fact can
not extend its service and Is in con-
slant danger OF total collapse. some
thing should be done about IL, The
obligation very clearly rests upon the
mayor and city commissioners to de-
termine what are the real facts. II
tains. then the public Ia more likely to
suffer because Of lack Of service than
1t is to suffer from reasonable In
crease In rates
We do not know about the conflict
ing interests in the company. each Of
which is commonly supposed to be en-
deavoring to freeze out the others and
obtain control. We do not know why
the company can not secure equipment
necessary to take care OF the demands.
We do not know how much money the
company is losing. or why, We only
know that no concern operated eco
nomically and intelligently should be
required to serve the public at loss,
At this time a large number OF homes
are nearing completion. They have
lost great deal more than they would
have cost few years ago, MosL OF
them are owned by persons who have
been compelled TO build in order to
escape the clutches OF the rent profiteer,
and the inflated values placed upon
real estate on the market These peo-
pie are entitled to gas and electric
current They can not he expected to
get along without these necessities
New industries every week are seek
ing location in Memphis They find it
good distributing point There Is
no difficulty IN securing satisfactory
sites. and yet many Of them turn away
from Memphis after definitely deciding
- ~arra bere whom n IA discovered
that they can not secure light or power
at the present. or any assurance OF II
in the future.
There is indication already Of unem-
ployment Every concern that Memphis
loses means loss not only Of the in
stitutlon, but the number Of persons
employed by IT,
No criticism is made Of the utilities
commission In its decision not to grant
an increase in rates unless the applica-
ton has the approval Of the MAYOR
and city commissioners 1t should have
taken this position in the outset and
1t would have escaped the criticism
II complains Of now.
Mayor Paine should take up the ques-
ton of gas and electric current service
at once. 1t Is not necessary to wait
on long and tedious survey, lie can
gather such facts as are pertinent In
a few days. and having these facts
in his possession should announce at
once what attitude the city intends TO
take. The several ways for relief will