The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-03-24
GAS RATES CO UP:
INCREASE IS FROM
3OTO66PERCENT
Flat Rate $1.10 After April t,
Instead of 80 Cents to ST..
Fifty Cents Monthly Added
to Every Bill.

ne net rate Tor gas IN Memphis
after April / will be $1.1O per 1000
cubic feet. IN addition the Memphis
Gas and Electric company is author
lied to add to every bill a special serv-
Ice charge Of SO cents a month, or at
the rate Of So a year to every consum-
er, in addition to the charge for the
gas consumed.
The old rate, fixed by contract with
the city in 1917, was 81 per 1000 for
the first 2,000 feet and 80 cents per
1000 for all gas in excess of 1000 feet
A minimum charge of SO cents month
was permitted if less than 1000 feet
was used
An order fixing the new rates was
made by the state railroad and public
utilities commission Tuesday night. The
rate Is to be temporary one, the conn
mission having ordered an appraisal Of
the cornpany's properties to ascertain
the actual value on which Y Will hh
be made by two experts, one to be paid
by the state commission, the other by
the company. The city is permitted
also to employ an expert but at its
own expense. No date is fixed in the
order for this appraisal
A strong fight against the service
charge" Of so cents was made at the
first hearing on the companys request
for higher rates last November by FL.
j. Livingston, who was then city at
torney That fight was continued by
w. p, Armstrong. present, city attor-
ney,' when the second hearing was held
during February of this year. but the
commission allowed 1t to be included.
How It Goes Up.
In actual results, small consumers
will therefore pay the company an in
crease of much more than 10 per cent,
which is the advance permitted on the
flat rate for 1000 feet or less.
The small consumer who uses less
than 900 feet will pay 81 month, in
stead OF 60 cents, or an Increase of 66
| per Cent. 't-
Users of 1000 feet, who paid 81, will
| now pay $1.60, or so per cent increase.
A bill for 1000 feet. which has been
! 81, will now be made out for $2.70, or
So per cent increase.
If 5000 feet is used monthly the old
cost of which has been $40, the con-
sumner will now pay So, or about SO
| per cent increase.
There are about $4,000 to 10000 fami-
lies which use gas, according to the
compahys reports, The so cents a
month service charge alone therefore viii
give the company a revenue Of $3.50 600
a year.
The commissions order was signed
| by all three members. George N, Welch
added a statement in which he held
lnal the city SnOuld De permitted TO
employ an expert at the expense OF the
| gas company.
The company made two unsuccessful
! efforts to secure higher rates before
| the recent hearing. One was refused
| by the city commission last July and
| the other by the state commission last
| November.
Since then tile company was %iaced
| In receivership and the receivers
statements indicated that the company
| was steadily losing money IN the gas
| department gas costing II was claimed
| $l02 per 1000 feet. The electric and
| gas departments it is claimed are op.
! Grated separately. The company claims
| an investment of more than $40, 00G, e0A
| one-third of which is in the gas plant.
| After the appraisal the state commits
| sion will be in a position to fix the
! value for taxation purposes which has
in past years been considerably less
than $5.000000
| Mayor Paine and Mr. Armstrong will
confer within the next few days as to
the employment of an expert to repre-
sent the city in the appraisal of the
Memphis Gas and Electric company $
properties,
| The mayor believes II will be wise to
employ an expert as was done in the
street railway rate case and appraisal
! 1t was due largely to- the clear, expert
analysis made by Ross W. Harris III the
street car rate case that the city was
| enabled to secure a temporary rate OF
| 6 cents instead of the rate first agreed
1lnon nv the commits Sinn centS~