Min 08/10/1931968
Wichita Falls, Texas
Ylemorial Auditorium.
Building
August 10, 1931
The Board of Aldermen of the City of 1 ichita " all s met in
regular session on the above date with the following members present:
5valter Nelson, Jr., lk;Iayor
J. i;. Prothro, j
J. b.1. Spoonts,
C. E. EcCutchen, i Aldermen
R. 0. Harvey, j
V. F'. Smitham, City Fanager
W.
E. T_cBroom, City Clerk
Thelbert I:=actin, City Attorney
The 11inutes of the previous meeting were read and approved.
OR:)IJiANCE NO.1066
AN ORDII�AXCE AMENDING SECTION 2 OF ORDINANCE NO. 241 PASSED
AND APPROVED Ohr THE 1ST SAY OF MARCH, A. D. 1917, ENTITLED "AN ORDI-
NANCE REGULATING THE SALE OF FRUITS, BERRIES, VEGETABLES, AND OTHER
SIMILAR PRODUCTS BY ADDING TO SAID SECTION 2; A PARAGRAPH PROVIDING
FOR CEILING FANS IN LIEU OF SCREENS IN CERTAIN INSTANCES" AND DE-
CLARING AN IIIIERGE19CY.
Loved by Alderman Spoonts that Ordinance I'o. 1066 be passed
on its first reading.
T:Iotion seconded by Alderman ,,-,cCutchen and carried by the
following vote:
Yeas: Aldermen Spoonts, ?'cCutchen, Prothro and Harvey.
Nays: None.
Moved by Alderman Spoonts that the proposition of the
Little Theatre organization represented by J. C. Straus, Jr., be
referred to the City L:anager for investigation and report.
T.:otion seconded by Alderman McCutchen and carried.
ORDINANCE NO. 1065
AN ORDINANCE PROVIDING THAT ADVALORNA TAXES DUE AMID OWING
THE CITY OF WICHITA FALLS FOR THE YEAR 1931 AND SUBSEQUENT YEARS
SHALL BECOME DJE ON THE 1ST DAY OF OCTOBER OF EACH YEAR, AND PRO-
VIDING SAME MAY BE PAID IN TWO EQUAL INSTALLLENTS, ON OR BEFORE THE
31ST DAY OF JANUARY AND ON OR BEFORE THE 31ST DAY OF JULY OF EACH
YEAR; PROVIDING FOR PENALTIES AND INTEREST ON DELINQUENT TAXES, AND
DECLARING AN MERGENCY.
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Moved by Alderman McCutchen that Ordinance i o. 1065 be passed on
its first reading.
Llotion seconded by Alderman Prothro and carried by the following
vote:
Yeas: Aldermen McCutchen, Prothro, Harvey and Spoonts.
Nays: None.
Moved by Alderman Prothro that the Surety Bond of V. R. Smitham,
City Manager, in the amount of :i20,000.00 be approved.
Motion seconded by Alderman McCutchen and carried.
ISoved by Alderman I'cClltchen that the bond of G. D. Fairtrace,
former City Manager, be returned to the American Bonding Company f can-
cellation as of July 1, 1931; it being understood that said bondin',� e
held liable for acts of said G. D. Fairtrace up to and including June 30,
1931.
Motion seconded by Alderman Harvey and carried.
Moved by Alderman 111cCutchen that the City Treasurer be authori
and instructed to make the following transfer from the .. ater Fund to the
r�fater Interest Fund:
Transfer from «ater fund to Refunding "Waterworks,
Series 1930A Bond Interest fund '52,586.30
Transfer from ?vater Fund to Refunding ,:aterworks
Series 1930B Bond Interest "Fund 3,216.04
These transfers being necessary to meet payment of semi-annual bond
interest due August 10, 1931.
lJotion seconded by Alderman Harvey and carried.
ORDINANCE NO.1067
AN ORDINANCE FIXING THE RATES TO BE CHARGED BY THE MUNICIPAL GAS
COMPANY OF WICHITA FALLS, TEXAS, FOR NATURAL GAS SOLD TO DOMESTIC CON-
SUI4ERS WIWIIN THE CITY OF WICHITA FALLS, 4'WTCHITA COUNTY, TEXAS, REPEALING
ORDINANCE NO. 301 AND ALL OTHER ORDINANCES IN CONFLICT HERENTTN:
KEREAS, on the llth day of September, A. D. 1920, the Board of
Aldermen of the City of itichita Falls, Texas, passed and the mayor ap-
proved Ordinance No. 301, authorizing the North Texas r'as Company to
charge, beginning September 21, 1920, for natural gas furnished to domes-
tic consumers within the City of Wichita Falls, Wichita County, Texas, the
sum of Seventy-five cents (750) gross per thousand cubic feet for natural
gas for domestic purposes, provided however, that this rate should be subje
to a discount of ten percent (10%) if payment is made before the loth day
of each month for gas consumed the preceding month; and
9,;�O
WHEREAS, the ''unicipal Gas Company has acquired the proper-
ties, franchises, and contracts of the North Texas Gas Company, and
did, during the year 1923, file an application with the Board of Alder-
men of the City of Wichita Falls, for authority to collect a service
charge or readiness to serve charge of fifty cents (50¢) per month
from each of its customers using natural gas in the City of Wichita
Falls, which said application was not acted upon by the said Board of
Aldermen; and the said I unicipal Gas Company appealed said matter to
the Railroad Commission of the .Tate of Texas, under the provisions
of the "Gas Utilities Law", which provides that where a municipal
government fails or refuses to act upon an application for a change
in rates for a period of sixty (60) days, the utility seeking the
change i_ay appeal to the Railroad Commission; and
WHEREAS, after due consideration and after hearing attor-
neys for the gas company, and for the City of - ichita Falls,, the said
Railroad Commission authorized by its order, entered on the 29th day
of December, A. D. 1923, the said gas company on and after December
21, 1923, and until otherwise ordered, in addition to existing rates
charged for natural gas in the City of Wichita Falls, to charge and
collect for service to gas consumers in the City of "ichita Falls,
the sum of fifty cents (50V) per customer per month to be known as
a "customer's" charge. Bills rendered each month to each customer
to include such charge in addition to the charge made upon meter
readings, and providing that the use of minimum charge be discontin-
ued; and the whole of the revenue derived from the charge therein
authorized should be retained by the I..unicipal Gas Company; and that
if, by any contract, decree of any court, or otherwise said revenue
shall become in any part the revenue of the company or companies
which supply gas to the Municipal Gas Company, the charge of fifty
cents (50V) per customer per month should be discontinued and said
order become void; and further providing that the assessment of such
customer charge should not apply to the service of industrial gas
and that the collection of a minimum charge from industrial customers
be not prohibited by said order, and
HEREAS, the Lone Star Gas Company which at said date was
furnishing natural gas to the Municipal Gas Company has at this date
acquired either directly or by and through a holding corporation
known as "Lone Star Gas Corporation" all or practically all of the
stock of the Municipal Gas Company and now owns and has owned for
several years past the said L.Unicipal Gas Company and has during
said period of time received said fifty cents (500) customer's
charge or the greater part thereof; and
IHEREAS, the said Lone Star Gas Company as the owner of
the said unicipal Gas Company has demanded and received from said
Municipal C-as Company two-thirds (2/3) of all monies received by
said Company to compensate it for furnishing natural gas at the City
gate for distribution to the customers of said I"unicipal Gas Company
until on or about December 1930, on which date a contract was enter-
ed into whereby the Lone -'tar Gas Company is to receive forty (40¢)
per thousand (1000) cubic feet f or domestic gas at city gate; and
HEREAS, gas may be purchased and transported to the city
gate at a cost of not more than eighteen cents (18V), allowing for
a reasonable profit and may be purchased and transported to the city
gate for ten cents (100) per thousand cubic feet; and
WHEREAS, gas pipe lines are now purchasing and transport-
ing to the City of -Wichita Falls natural gas and selling same for a
profit at rates ranging from seventeen cents (170) per thousand
cubic feet to eleven cents (11¢) per thousand cubic feet; and
WHEREAS, the present fair value of the distribution plant
of the I.:unicipal Gas Company used and useful in tYE service of gas
to its consumers within the City of Wichita "alls, Texas, does not
exceed the sum of "893,196.65; and
'`IHEREAS, considering all the facts and circumstances, the rate
now charged domestic consumers in the City of '?ichita Falls, is exorbitant
excessive, and unreasonable and has been for a period of several years pre
ceding this date; and the said Lone Star Gas Company and the said Municipa:
Gas Company, which in truth and in fact are one and the same, have made
enormous profits for their stock holders from excessive charges; and
rHEREAS, on or about the 30th day of April, A. D. 1931, the
Board of Aldermen of the City of INichita Falls, requested the Punicipal
Gas Company to agree to a revision of its rate and reduce same to a reas-
onable charge that would produce a fair return upon the value of its prop-
erty in the City of !''ichita Falls, used and useful in the public service;
and
1I,1IEREAS, said Municipal Gas Company after having been given an
opportunity to voluntarily reduce said rate and to be heard upon the ques-
tion whether or not said rate should be reduced, did on or about the 1st
day of June, A. D. 1931, refuse to reduce its rate; but in writing propose
to the said Board of Aldermen to substitute for the present rate charged
for gas furnished to domestic customers, a rate which was an increase over
and above the present rate and agreed to discontinue the fifty cents (50¢)
readiness to serve charge, which in fact has been illegally collected by
said company for several years, which said proposed rate was to become
effective June 1, 1931, if same met with said approval of the Board of
Aldermen; and
HEREAS, the said Board of Aldermen having investigated the
facts and ascertained that the rate proposed by the said Municipal Gas Com
pany is unreasonable; and that a charge of fifty cents (50¢) gross, or a
net charge of forty five (450) cents per thousand cubic feet to domestic
customers together with a minimum charge per customer of one dollar ($1.00
per month would produce a fair return upon the present fair value of the
property owned by the said Municipal Gas Company, in the City of T,ichita
_galls; and that said ready to serve charge of fifty (509') cents can no
longer be legally collected by said Municipal Gas Company, and, whereas,
the Charter of the City of _.,ichita Falls and the Laws of the State of Texa
authorize and empower the Board of Aldermen to fix the rate to be charged
by the said Gas Company in the City of-;ichita Falls;
ITOW, TI-EREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE
CITY OF FI IC HI TA FALLS, TEXAS:
Section 1. That the 1unicipal Gas Company and the Lone Star Gas
Company shall be entitled to charge, beginning the 1st day of October 1931
for natural gas furnished to domestic consumers within the City of y ichita
Falls, Wichita County, Texas, not more than the sum of 'fifty (50¢) cents
gross per thousand cubic feet for natural gas for domestic purposes; pro-
vided, however, that thisrate shall be subject to a discount of ten per
cent (10%) if payment is made before the loth day of each month for gas
consumed the preceding month and that a minimum charge of one (.$1.00) dol-
lar per month may be charged for each domestic customer.
Section 2. That the said companies shall deliver such gas to
customers through meters to be furnished by the companies without cost to
the customers, provided the companies may require customers to make a
reasonable deposit to secure the payment of monthly bills which deposit
shall draw interest at the rate of six percent (6%) per annum, payable
on the 1st day of January of each year.
Section 3. That the rates authorized by this ordinance may be
charged and collected by the Municipal Gas Company and the Lone Star Gas
Company until the expiration of the franchise granted to i:. * " . Baham and
his associates by the City of F ichita Falls, Texas, and now ovined by the
Yunieipal Gas Company and the Lone Star Gas Company.
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Section 3. That Ordinance No. 301 passed and approved on
the llth day of September, 1920, entitled "An Ordinance granting to
North Texas Gas Company the right to increase its rates for natural
gas sold to gas users within the City of Wichita Falls, ?`ichita
County, Texas, and fixing the price to be charged by it for natural
gas sold within said City of Wichita Falls, Texas, and amending 'An
Ordinance giving and granting to I;. ?`,. Baham, his associates and as-
signs the right to construct and operate gas works in the City of
Wichita walls, Texas, and the right to lay mains and pipes and make
connections in the streets and alleys of the City of :ichita calls,
and to do all other things necessary to the operation of said gas
works,,!. and all other ordinances in conflict herewith, be, and the
same are hereby in all things repealed.
Loved by Alderman Spoonts that Ordinance ]-o. 1067 be passed
on its first reading.
Lotion seconded by Alderman Harvey and carried by the fol-
lowing vote:
Yeas: Aldermen Spoonts, Harvey, Prothro and L:cCutchen.
Nays: None.
I: oved by Alderman I1cCutchen that j,. E. TAcBrOOm, City Clerk,
be permitted to be absent from his duties during the next eight days,
ar.d E. W. Irvine be named Acting City Clerk during the absence from
the City of E. I.cBroom.
Motion seconded by Alderman Harvey and carried.
Moved by Alderman Spoonts that the meeting be adjourned.
Motion seconded by Alderman Prothro and carried.
The Board of Aldermen then adjourned.
READ AND APPROVED this the 17th da of August 1931.
Mayo r