The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-09-27
RATE RAISE
IS FAVORED
|, BY BANK
HEADS
Say Receivers Certificates
Wanted by Gas and Electric
Company Won't Give Relief
Needed. HI,
SOME ALSO THINK THEY
WILL BE HARD TO SELL.


Granting OF increased rates rather
than the issuance Of receivef,s certifi~
Gates as measure OF affording tern~
porary relief to the Memphis Gas ana
| Electric company is the method
Il favored by a majority OF Memphis
bank presidents.
| OF those bankers who favor In
Creased rates the majority declare
that these increases should be granted
with the distinct understanding that
they would prevail only during the
existence of the present emergeucy
and purely as a means OF assisting
the company to render more efficient
service 10 Memphis patrons.
That the receivers Of the company
VIII have difficulty in disposing of
Inc certificates. in the event they are
authorized by the federal court. Is the
opinion Of more than one bank prest-
dent. This is attributed TO the fact
that the company is not earning any
money and that the plants are inS
dire need of rehabilitation.
something has got To be done,ss
Abe Goodman, president of the Com
mercial Trust and Savings Bank said.
Perhaps II would be well to increase
rates and also issue receivers cerfi-
ficates, Unless the gas and electric
hcompany is given some kind OF re-
lief Memphis patrons VIII undoubt-
edly suffer this winter. Increased
rates, however, should come down as,
soon as the purposes Of the increase
have been served" -
Theo. Reid, president of the Seq
lcurity Bank. expressed the opinion
that funds for emergency uses should
be raised solely by the issuance OF
Ireceiver's certificates. mo rate In
crease should be given until the mat
ter IS permanently settled" he said.
Receivers certificates would take
care OF their present needs.
Il haven't given the matter much
thought but every concern is entitled
to live and earn q rerhrn upon their
Investment | am not In favor OF
too susingent regulations and think
| perhaps that rate increases for tenn =
Iporary relief. given with the under
standing that they would be reduced
whenever the situation tustlfled.~
was the opinion expressed by P.S.
lSmithwlck president Of the First Ma
tinnal Bank a*
"The Gas and Electric company
must have assistance or II viii go
! under" said Harry Cohn. president
IUt iN6 GdNlnHS LeAIlk anu
Trust company. AS IL is, the com :
pany can not go on without some
: way of raising money to build up
their plant. Our sights went out four
, times Sunday evening between 8 and
o'clock. The sale OF receivers Gers
tificates would provide a way to in
crease and improve the service. and
? increased service will Increase tho
revenue without material increase
: in charges to the consumer"
The gas and electric company IL
going to have mighty hard time
disposing OF receivers certificates
lied s. w. Portlock. president .Of
the Peoples Bank. They are earn
ing no money and while the certifir
( Gates are perfectly good. l don't be-
lleve they viii be able to get rid ~
! them very quickly. Their only
chance is a temporary rate Increase
and it is absolutely essential tnAt
they get some kind of relief quiriSlxsN
IT. O. Vinton. president of the
Bank Of Commerce and Trust com.
nany. said:
-They have got 10 have increased
rates. The receivers certificates viii
: only get them further fn debt and
some day there will have to be. an
should be- such that owners Of the
; company would be assured of re-
Z turn on their investment. The stock
was floated at a time when the mar
ket was low and they are justly en-
S Titled TO a guaranteed return on the
money they have put into the com
S lrany"
e THE city should ascertain fully the
condition Of the company and its
Ineeds and rate increases should be
u ample to take care of the emergency
r needs. | don't know that receivers
Il certificates would help matters 10
, any great extent and can see no
reason why there should be a change
In receivers" was the opinion Of
S. T.. Ragland president of the CeR~
trail State National bank t
"A sliding scale of rates that would
increase when the company needed
the money and would be reduced
when the emergency had passed
would be the best arrangement the
gas company could make" said John
r. Walsh. president OF the North
Memphis Savings Danx. THAI
. would be much better than receivers
| certificates and would protect the
| public as well as the gas company"
/ Mr. Walsh indicated that his ideas
OF the state utilities commission were
such that such body should not
n exist or at least not be able to con
n troll affairs affecting the people Of
Memphis
G w Thompson. president of the
h National City bank. said:
n Pate increases are perhaps not as
Is quick but are much better hut should
i- be made on the distinct understand
Us ing that they would come down III
" soon as the present high prices come
n Gown 10 normal and this latter, I be.
ID lieve, TO be n certainty"
l. NJ. G. Bailey president of the LIN.
X erty bank declared that he had neve
h gone into the matter close enough 1,
be able TO express an opinion on tn,
subject.
From opinions expressed II WIN III
II seen that the course OF the gas ant
: electric company in abandoning thel
>, plea for temporary rate increase an,
1 asking authority to issue receiver,
= certificates is contrary to the opin
/ ions Of a majority Of Memphis bank
0, ers
/ The entire situation now IS a,
lie emergency proposition inasmuch 4,
the state utilities commission WIN
i probably he in position to fix the per
l. manent rates by January l. 1921. q
, which owners of the plant win X
/ lgiven a guaranteed return unon TX
l. physical valuation which Appraiser
are now fixing.