The Chronicle-star combined with the Moss Point advertiser., 1947-02-28
Power Franchise
Debated BY Local
Group, Company

Alleged advantages and disad-
vantages of a proposed new 25-
year franchise for the Mississippi
Power Comapny in Pascagoula
were debated last Friday at a
public hearing in he Pascagoula
city hall by representatives Of the
company and by a group of citi-
Gems who objected to the new
franchise.
The company now sells power
to local consumers under a fran
1925 ana which does not expire
until October 6, 1850. The com
pany has asked the city council
TO abrugate the old franchise and
to sign q new one covering OPP.
erations for the next rs years. If
the city council should grant the
new franchise, this action would
have to be ratified or rejected BY
the qualified electorate of Pasca-
goula.
One feature Of the new fran
chise not contained in the old one
is the provision that the compa-
ny will pay the city two percent
of its gross sales. 1t is estimated
that If sales were maintained at
the present rate of about $780,
900 a year the two percent reve-
nue. to the city would amount to
$4,000.
Sales Tax"
A citizens group headed by
+. l.. Labbous and represented
by Attorney Karl Wiesenberg
filed a formal protest at the hear
ing Friday charging that the
company should cut its rates
by two percent for all consumers
rather than pay two percent into
the general fund. The two per
cent payment into the general
fund would arnollntto a dis
criminatory" sales tax on eonsum-
ers siNoe the money would be used
for general purposes like road re-
pair and not for services of dl-
rect benefit to the power eonsum-
ers who make up the company's
revenues, the petitioners said.
The petition also charged that
changes and omissions in the Ian
guage of the old franchise, as
carried over into the proposed
new franchise, might have the eff
feet Of permitting the company
to set its own rates without ref
erence TO city rate ordinances;
that it might permit the company
to charge users for electric me
ters, instead of providing them,
without charge, as at present is
required; and that by omission of
the word promptly" the COM
pany would be permitted to take
its own time" about repairing
streets and sidewalks which might
be damaged in erecting and
maintaining power poles and
lines.
The petition charged that the
principle of all public utility
franchises is to sccure maximum
benefits for the consumers rather
than 10 raise money for the mu-
nicipal corporation for general
purposes. But under the propos-
ed new contract, the group charg-
ed, the consumers will receive
no new benefits, but instead will
lose some benefits they have
under the franchise now in eff
feet" Other signeps of this pc
tition in addition to MI. Lab
bous were
bous we're II. l. Hatten, II. NJ.
Bowman. John Vlahos and G.. E.
Briggs.
The company vas represented
at the hearing by Attorneys
James S. Eaton, John 7. Dalier
and r. M. Shearer, of Gulfport,
and by }. f. Stone, manager of
the Pascagoula office.
Mr.. Eaton. reading the com
pany's formal reply, made gener-
ii denial that the new franchise
sought to withhold any benefits
its consumers at present enjoy.
and offered a point by-point re-
huttal of the allegations contain
ed in the protest petition.
lie denied that the company
would be enabled to set its own
rates under the new franchise
without reference to city author
ity. He said Section 3433 of the
Mississippi Code of 1912 gave in
c%orporated municipalities the
right to prescribe maximum
rates and charges for water, pow
er, lights or gas" and to seek
review in ehancery court of COM
pany rates which the city coun-
ell considered unfair. This mu-
nieipal right would exist wheth-
er or not il was stated speeifi-
cally in the new franchise. He
stated also that as to the question
of repairs of city streets damaged
by the company, the courts would
hold the company obligated %
make such repairs "within a
reasonable length of time" wheth-
er or not the word promptly
was contained in the franchise.
He said the company had no in
tention of charging for the use
Of electric meters He said that
meters are still hard to get and
that many new customers are
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