The Chronicle-star combined with the Moss Point advertiser., 1947-02-21
New Power
Franchise Is
Protested
Public To Lose
II Law Passes
Petition Says

A protest charging that the pro-
posed new franchise between the
City of Pascagoula and the Mis-
sissippi Power Company would
permit the company to set its
own rates and charge for the use
of electric meters, and that the
effect of the new franchise would
be to place an illegal two percent
sales tax on the users Of electric
current, was filed this week with
the city council by f. j. Labbous
on behalf of himself and "all users
of electric current supplied by the
Mississippi Power Company"
The protest charges that the
present franchise will not expire
until October 6, 1850, and that it
is against the interests of the
citizens of Pascagoula to abolish
the old franchise and substitute
a new under which ethe con-
sumner will receive no benefits"
but instead Twill lose those they
have under the franchise now in
effect"
The new franchise to which
the Labbous petition refers was
introduced in ordinance form in
council Feb. 4. II provides for a
general election March rs to au-
thorize the city council to abro-
gate the old franchise and substi-
tute the new franchise. The new
ordinance has been held over
pending a public hearing of the
protest at 2 p. m, Friday, Feb
ruary 81 Following this hearing,
the council will meet on the ques-
ton of final adoption.
Two Percent to City
One new feature of the new
franchise is the provision that
tive Missiaaippipav Cesapan3
will pay the city a sum of two
percent OF the gross revenue of
the company for the sale of power
in the civ. Since the gross reve-
nue. of The company is estimated
TO run approximately 100000
a year, the sum to be paid TO the
city would amount to about
$4,000.
The Labbous petition charges
that this sum will probably not
be used by the city for any pro-
iect OF direct benefit to the cleo
trio consumers who will pay it,
and that this two percent pay.
ment to the city therefore am
cunts to a discriminatory and IL
legal tax on electric consumers.
Prominent among the points
included in the protest is the
charge that the wording of the
present franchise will be so
changed in the new franchise to
be voted on March 25. that the
company fill be enabled to set
its own rates rather than be sub
ject to rules and regulations
lawfully fixed or enacted by the
city" The petition also states
that by removal of the word
promptly" from n section, "the
effect is to permit the
Mississippi Power Company TO
take its own time in repairing the
streets and highways of the city"
which may be damaged in main
tanning or erecting power facili-
ties.
For Public Benefit
In a section referring to the
proposed payment by the COM
pany of a 2 percent sum to the
city, the protest objects in the
following language: Petitioner
would show that the primary OBJ
leet Of all grants of franchises
is to benefit the public, and not
the procuring of revenue for a
municipal corporation, and no
reason exists in law or justice
why the Mississippi Power Com
pany could not effect a 2 percent
reduction in the charge to this
petitioner and to the public US
ing electro current, instead of
paying said sum in the municipal
treasury where in all probability
it will be expended for purposes
having no relation to the use of
electric current
It adds that "the term of office
of the present Mayor and council
men of the city of Pascagoula will
expire prior to October 6, 1850,
and it is possible that new Of
fieials may be on the Council on
that date. and the new admins
tration Of the City of Pascagoula
might desire at that time to pro-
vide for a municipality operated
power plant
The petitioner is represented by
Attorney Karl Wiesenberg.
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