Detroit evening times. (Detroit, Mich) 1921-1958, 1941-02-03

fDo|f
Bind|y, Says
Voolfolk

voolfolk
If the people of Detroit want to
buy the Michigan Consolidated
Gas Company, the gas company
will be glad to negotiate for its
sale" William G. Voolfolk, presi-
dent of the company. declared
today.
However, he said. the peopls
should understand thoroughly
what municipal ownership means.
He charged Council President
John w. Smith, leading prepayment
of the municipal ownership plan,
with attempting to befuddle and
mislead the voter with political
claptrap, half truths, Justification
and scurrilous attacks on entire.
prises and individuals"
Councilman Smith, even al
lowing for political license,
ought not to misrepresent the
facts as to rates charged I'm De-
troit and other Cities" Voolfolk
declared.
WOOLFOLK'S ANSWER
After analyzing the recent de.
ciSion of the public service COM
mission increasing the rates to
those using gas for house heating,
Voolfolk said:
THE house heating customer,
in all probability, owes his In.
crease to the action of the gas
committee of the City Council,
headed by Councilman Smith"
Woolfolk's reply to criticism Of
the Gas Company was issued while
eight of the nine councilman ex-
pressed themselves as favoring
submitting the question of munich
pay ownership to Detroit voters.
Councilman Smith said he will
ask, at tomorrow's council meet
/ Iiles tIldl tiG quCStfOIf NC SUI
mitted on the April 7 ballot. e
Councilmen Charles E. Doraiss
James H, Garlick, Harry I Dinge>
man. Hamilton, Sweeny and Smith
are fortnight in their support OF
the purchase. .s.--
Eugene /. Van Antwerp said he
wished to hear more about tho
plan before coming to a definite
decision. and John Lodge said he
did not believe in committing HIM
self in advance of voting. Council
man Henry G.. Ewald could not be
reached for comment.
RFC AUSO INTERESTED
IT was also learned that the pro-
posal of city officials to buy the
company has attracted a large
New York financial institution to
gree to underwrite the city's bond
issue. The Reconstruction Finance
Corporation is also interested, and
special representative of the
RFC is coming here this week for
preliminary examination of the
project.
In his anhwer to the advocates
of municipal ownership, Voolfolk
said he has deep respect" for the
convictions of such citizens az
Mayor Edward ]. Jeffries Jr., who
believe in the principal of munici-
pay ownership.
whether I agree with them
or not, 1 fully recognize their
right to urge the voter to follow
Them" he said. But Voolfolk
attacked Councilman Smith for
his alleged falsifications Of the
gas situation.
HOW RATES CHANGE
Therefore 1t might be well
for the people to look at the rec
ord before turning this $70,0O0,-
900 property over to the city to
rum" he said.
He pointed out that since 1924
the gas company has not fixed a
rate to its consumers. At that
time, rates were fixed by board
of arbitration on which sat the
present justice of the Supreme
Court, Frank Murphy. The rates
were reduced by the company
S1,O00.000 during the depression
and increased TO the arbitration
boards standards in 1885, Wool.
I folk said.
In 1886. natural gas was brought
in and the rates were fixed by the
city's own engineer, Frank p.
Fisher, retained by Councilman
Smith. chairman of the city's gas
committe," Voolfolk said. These
rates weer part of the Detroit plan.
the child of Councilman Smith"
APPEALED BY McCREA
Duncan c. McCrea, then prose-
icutor. appealed the rates and u