The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-12-22
BEACH FAVORS
BILL PROVIDING
FOR GAS PLANT
Second Senator From Shelby
Swings Info Line to Swat
Corporation for Outrageous
GaS-Liuht Bills.

L. d. BeJach, senator elect and
| member of the Shelby county dele
cation. announced Wednesday that
| he would favor the passage of a bill
through lhe legislature giving the
people the right to determine in q
| referendum election il they desire to
issue bonds for the erection and op-
| Grafton Of a municipal gas and cleo
| trio light plant.
| Mr.~Be jacn was a member of the
legislature in 1918 when a similar
| bill was passed, the purpose of which
was defeated by the surrender Of
the city administration to the COR
| porate interests when the two COM
panies were permitted to consolidate
1t Is practically certain that the en-
tire legislative delegation will sup
port an enabling act such as the one
proposed by Senator Chandler and
Senator Bejach.
Bejach's Statement. ss
In his statement regarding the
situation Mr. Bejach said:
You have asked me, as one OF the
senators from Shelby county in the
1921 session of the legislature, to
make a statement with reference to
the proposed bill to authorize the city
| of Memphis to issue bonds for the
purpose of buying or building its own
gas and electric light plant
II take great pleasure in giving
such statement. | am heartily in
favor of the measure and will do all
can to assist in its passage. l was,
a member of the lower house in the
1913 legislature and at that time the
members of the Shelby county dele
| Ieyn - - IL
/ authorizing the issue of million
and a half dollars, worth of bonds
! by the city of Memphis for the pur-
pose of buying or building an cleo
| trio light plant.
II was very> much interested in
this bill at that time and helped to
| get it passed In the house after it
had passed the senate. The people
| of Memphis later voted for the bonds
authorized by this act and voted in
favor of issuing them by a majority
of more than ten to one.
1T was great disappointment to
fme when the will of the people was
| thwarted by the compromise plan
which later city government effect
ed with the gas and electric light
companies. The people of Memphis
are at the present time realizing the
| full effects of the agreement which
killed the city light plant and
thwarted their expressed desire.
Il sincerely hope that IL we are
successful In passing q, similar bill
in the 1921 Legislature and the people
again vote for the municipal plant
as / am sure they will, that the .mu-
| nicipal plant will not be killed sec
ond time by compromise agreement
of any kind"
The resentment of the public was
| in no way allayed Wednesday by
| the statement OF Mr.. Il. M. Proutt,
representing the city, urging the
utilities commission to fix rate
! of $3.50 per 1000 feet for gas instead
of $1.75 as temporarily agreed upon
by the city and gas company. The
! city also has agreed that the rate
for electricity shall remain un-
| changed.
1t is recalled that when the city
| abandoned the proposal to construct
! gas aud electric light plant, con-
sumers were paying 80 cents for gas
| and 5 cents for electricity The
| price of gas was increased to $1.10
and the price of electricity was in
creased to cents The city admin
istration recently agreed to a further
increase to s1y5 for gas and 9 cents
for electricity, representing 60 per
| cent increase for gas and so per
cent increase in electricity.
The total revenue Of the company
was increased by the raise in rates,
100000 for gas and $1,O00,000 for
electricity by this change on a basis
of a total revenue OF 81 900, 900 for
gas and 100000 for electricity.
The gas and electric company has
insisted all along that it was making
| considerable money on electricity,
but that its profits were being used
to care for the deficit In operating
| the gas plant