Henderson daily dispatch., 1942-04-02
Courts May
Decide
M a Intim a S
Further Action in Be-
half of Gas Company
Customers; Service
Ends r e e a d | e j..
However, April IS.

However, April IS.
Summing up procedure of the last
two months in connection with CeS-
SatlOn by the Henderson & Oxford
Gas Company of service in Hender-
son, Mayor Henry Powell minated
in d statement today that the city
might enter court procedure to see
that the company pay a reasonable
. price for equipment forcibly dis
carded by customers of the gas COM
pany.
Since the Utilities Commission has
held that the gas company should
use every effort to avert loss to cit
lzens, and since the gas company has
failed t. take what we felt were
reasonable steps" to reimburse Gus
TONERS for discarded equipment, the
city has excepted to the findings Of
the commission with the idea pf
having the court say what is a rea-
sonabl@ price for the equipment, and
whether or not the gas company
should be required to purchase the
same, a. far as they have assets :
The mayor warned, however. that
exceptions filed against the commits
sion's rulings will not affect the
discontinuance of the gas service on
April Is, but will only tie up re-
moval Of the property until a judicial
decision can be had"
In making his statement and sum
ming up events, the mayor said that
lin view Of the conflicting state
ments issued about the Henderson
gas company stopping the service
here April Is, | feel that the cit
liens should be informed step by
step just what is happening"
The statement then outlined the
steps that had been taken and action
contemplated by the city. 1t follows
in full:
In view of the conflicting state
ments issued about the Henderson
gas company stopping the service
here April Is, fee" that the citizens
should be Informed step by step just
what is happening. These steps are
as follows:
l. We found that under the State
and Federal laws. the company be-
ing insolvent. that it was impossible
for us to force them to continue
service.
2. We next attempted to negotiate
with the gas company to voluntarily
purchase the equipment Of the Gus
toner on the theory that by its
franchise, which run until 1947, that
the customers having purchased
equipment that they were creditors,
superior to the bond holders to the
value Of the assets Of the gas COM
pany, which in their offer to sell the
City OF Henderson they listed at
$4,000, plus the difference in cur
rent assets and liabilities. But we
were V able to get beyond the
suggesting stage with this idea.
3. When the petition to discontinue
service was filed and the hearing
held on the same, the City of Hen
derson, through its attorneys, argued
that the equipment held by its cit
lZens was a superior lien than that
OF the bond holders,
4. The gas company through Mr..
Sturkey disclaimed the liability and
stated that they would be glad to
buy certain equipment from individ-
ual owners but that they would not
zeal with a group.
5. In reply to this, the record OF
the hearing shows, the Utilities Com
mission, through its chairman, Mr..
Stanley X. Winborne, stated that it
was his opinion that the gas COM
pany. by taking a franchise in Hen
derson, had held itself out as con-
unulng in business in Henderson and
that 1t was his opinion that the gas
company should reimburse the GUS
toners for all disable appliances. not
At junk value but what they were
worth for use on a going concern.
And re ordered the Henderson gas
company to furnish him a list of all
equipment in Henderson that was
usuable and what they thought 1t
was worth, and that he would then
rule on the question of what they
8 Guild pay for the equipment. or
this is not a verbatim copy OF the
record, and it is not, it at least is
fully the substance thereby
81 e. AT the same time the Utilities
Eommis ion entered an order allow
ing the gas company the right to
discontinue service on April IS and
20 the only question remaining was
ltthat of whether the consumers would
pc paid for their property or not.
Ind if so, how much.
N 7. We were informed over the 'tele-
Shone on Friday, March 81, by Mr.
inborne that the gas company had
aprnished him a list Of usable equip
'ment and had valued it at $1,1OO.
.. The Utilities Commission, not
being a judicial body, cannot issue
. binding order to pay money, but
can report its finding and it is then
4 question for a court Of law to de-
termine. And they found that in
their opinion the customers of the
Henderson gas company should be
reimbursed. But not being a judicial
body he could not order the gas com.
pany to pay any specific amount.
8. We inquired from Mr.. VIM
torne and the gas company as to
the value of specific pieces of equip
nent, which we knew had hereto
fore been sold and knew the price
4 :. ined therefor, and found in each
instance that the value placed on
3he same in the list furnished Mr..
Winborne was in no case more than
one half the value placed thereon
A1r IN o-I - -,o,k