The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-08-18

That where any existing contract be-
tween any public utility and any. mu-
thnss tothepr pe'ss than 'hae Charging ceTtain
rates, tolls or fares) shall continue TO
be done by such public utility, or the
nature, kind and quality of any par
ticular service to be rendered by the
public utility to the municipality or its
people, nothing in this section nor in
this entire act shall be construed to
authorize this commission to excuse
such public utility from continuing to
do such specified things or from con-
tinuing to render and perform the ser
vice of at least the nature, kind and
quality specified in any such existing
contract. but, all these things involving
the cost OF the service shall be taken
into consideration by the commission
in exercising its power to pass upon
the reasonableness Of any rate, fare or
charge hereafter to be, made by such
public utility"
Commenting upon this. Mr.. ARM
The franchise contract of the Mem
phis Gas and Electric company requires
1t to make extensions proportioned to
the number of consumers. / think that
this provision is enforcible and on ap-
plication to the public utilities commits
sion, they will require the receivers
to furnish this service"
Will Seek Advice.
While at the meeting of the Ameri-
can Bar association Mr.. Armstrong will
endeavor to secure the advice and coun-
sci OF prominent attorneys on legal mat
ters pertaining to public utilities. The
experience of other attorneys in deal
ing with these matters win be brought
to the attention of that particular sec
ton of the convention and Mr.. Arm
strong expects to secure some valuable
information that will greatly assist him
IN both the gas company case and the
street railway case.
The Chamber of Commerce, Tuesday
held meeting to discuss the ultimatum
or the receivers of the gas and electric
company in which they declared a dis
assigned as their reason lack OF
funds. There was no definite action
taken at this .meetingf
Receivers for the gas company
which they pfInt oat the financial diff
culties under which the company Is OPP
Grating. The increased rates granted
earlier, In the year are not sufficient,
with increased cost OF coal oil and
other items to permit any Improvement
or enlargement of their plants.
The money derived from the increased
rate. they declare, barely takes care OF
maintenance cost and this fact added
its antiquity and increased burden
greatly jeopardizes the efforts of the
company to continue gas and electrical
service to Its present number of con-
sumers and they point out that any adj
ditional load will result in complete
breakdown Of the plants which would
cripple the whole city.
Coercion Denied.
Denial of any attempt to coerce the
city authorities to grant increased rates
IS made In a lengthy statement issued
by the gas and electric company fol-
lowing the conference with Chamber
of Commerce officials The statement
enters INTO voluminous discussion of
the condition OF the company at this
time and purports to show where ONLY
some public Inconvenience" is being
caused by the no-meter connection
order, where on the other hand a ca
lamity is averted by not straining the
power plants to the last ditch.
completion of certain emergency ad-
ditions Is assured under an increase OF
rates, according to the statement. No
credit is established for the receivers
and 1t is declared that the company Is
in default of 100000 in interest and
certain taxes are delinuuent.
1t Is alleged that II the additions are
forthcoming repairs may be made to
maintain better service this winter The
statement closes with an expression OF
appreciation to the Chamber Of Com
merce for its aid ana interest in the
matter.
Vice President Walker, of the Cham
Der OF Commerce, said Wednesday.
nothing would be done by that body nm,
til after report had been received
from the gas company and then the
merits OF the situation would be dis
cussed. -~