The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-10-16

Increased gas and electric rates
will become effective in Memphis on
Oct, 2S, and at the same time #. Gfi
Proutt, consulting engineer, viii as
sumo the duties Of local represents
ative of the state utilities commits
sion with supervisory powers over
the operation and management Of
the gas and electric company.
The state utilities fcontnission
Saturday entered an order making
possible the operation Of an agree-
ment reached between the city and
the cas- pnd elsctFies sconpasly u eanHs
formity with the proposal rs outlined
at the public hearing by the 6ity
commission Thursday At this meet
ing the memorandum agreement hee
tween the city and the gas and eIec{
trio company was adopted by the
city commission.
The rate increases range from 20
per cent to 35 per cent, the lower
figure being applicable to small con-
sumers while the rate OF increase
mounts with the amount of electricity
or gas consumed. The largest COM
sumers of either commodity will b1
called upon to pay the higher figure.
The rates are only temporary and
unless there Is some disagreement
between Mr.. Proutt and the gas
company as to operation or man
agement, will remain,in effect unttl
the permanent rate Is fixed by the
state commission after the hearing
on the appraisal and the rate base
is fixed.
The objection on the part Of the
gas company as stated at the public
hearing Thursday were that the utili-
ties commission would not agree to
delegate its authority to one man nor
would the federal court agree TO
have an outside man with powers
exceeding those OF the receivers.
Walter p. Armstrong, city at
torney. wired Federal Judge A. N. J.
Cochran and the utilities commission
asking whether or not they would
agree to such an arrangement Both
gave favorable replies and Mr.. Arm-
strong and Lovick +. Miles. attorney
for the gas company, resumed con-
ferences
Terms were agreed upon Friday
and the matter was put In proper
shape and forwarded to the utilities
commission. The order was entered
by the commission Saturday and MIR.
Armstrong and Mr.. Miles we're ad-
vised by telegraph.
The rates which became effective
! under the new order follow:
Gas rates: $f.75 per 1000 cubic feet
with a minimum bill of 80 cents per
month.
Electric rates.
First>b0 XVIII. per month, 80
per XVIII.
Next $50 XVIII. per month. 70
per XVIII.
Next 300 XVIII. per month. SC
per XVIII.
Next 500 XVIII per month. SC
per XVIII.
Next 1000 XVIII. per month. 40
| per XVIII.
Minimum bill 80 cents per month.
The order of the commission pros
vides that the above rates are net
| and the receivers OF the gas and etec@
trio company are authorized to bill
for gas at rs cents per thousand feet,
and for electricity at one cent per
| XVIII in excess OF the net rates.
| the excess to be refunded or dis
| counted if bill is paid within 10 days
| from the date bill is delivered.
As to the receivers certificates au-
thorized by the federal court. the
order of the commission provides that
the owners of a majority of the stock
shall purchase them and the funds
to be expended for making additions
to gas and electric plants and for
making connections for consumers
and for improvement of service.
Mr. Proutt's authority as outlined
in the order is limited ito investiga-
ton and recommendation into and
concerning the construction work.
plant operations, gas and electric SER
vices OF the receivers. and shall not
include any right 10 direct or control
the management OF the said receiv-
ers or the conduct of their ems
ployes."
| Discussing the matter Mr.. Arm :
strong stated that the city had made
no concessions whatever other than
those contained in the memorandum
adopted by the city commission az
| THURSDAYS meeting