Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-03-03
One Of Our Natural Monopohes.


CUrsHAw's estimate OF the cost OF an cleo
trio plant such as would do credit to this
city. The committee receiving this esti-
mate regarded IL as one of the most COM
plete that had ever been seen. For conve-
nience sake. let us assume that. including
the value of the ground TO be used, the
new electric-plsnt will cost $4,000, anu
then let Us ascertain whether we detect IN
the possibility that the city will abdicate
her right 10 manage that plant the begin
ming of the existence of natural mo-
nopoly," such as Professor Ely objects TO-
What rate of interest would the city have
TO pay upon si5o,OOOf -Four per cent per
annum, OF $4,000 What rate of interest
would an outside company charge up 10
the account OF the electric-plant when that
company was called upon TO report its con-
dltion2 Six per cent, or $1,000. Ana we
oil know who would have TO pay IN the END
the extra $1,000 year.
The reader. must not lose sight OF the
fact that any city under the control OF a
natural monopoly is independent OF the
municipal authorities. In other words, the
choice we have. as we have said heretofore,
is between owning the gas-works, water
works, and electrlc-works and being owned
by them. The hundreds of employees
would in the latter case, instead OF being
the city's servants, be the city's masters.
We cannot be too careful in protecting our
white laborers who have 80 manfuliy stood
by us for so many years. And we must re-
collect in this connection that huge COM
pany is very apt TO try to control the votes
even Of its white employees.
A natural monopoly admits OF no COM
petition. viii our new electric-plant adj
NIT of competition? Of course not. Inc
City Council would not allow the streets
to be dug up day after day by two COM
panies. II would be an intolerable null
sance. And with only one company there
could not be any competition. 1t would
simply be impossible There is no use nor
sense in talking as il company could or
would compete with itself. But suppose
| that two companies were authorized 10
dig up our streets, each TO have an electric
plant costing $l50,OOO, where would the
money come from to pay these S3OO,OOO
From the patrons Of the plant necessarily.
We should have to pay twice as much IN
order TO have competition as we should
have to pay the city itself for providing
| her own rights.
In his book on the Economic Value OF
Electric Light and Power" A. IL. FooTE'
of Cincinnati saws;
Electricity and gas NAV be generated
| from the same source-coal, heat 10 DC
made helpful servants for the uses Oh
| light, heat, and power, they must De sent
on their mission of service through the
same streets. Why not from the Same
| central ststion?" r
| electricity and gas" Where the gas in
| terest does not unite electricity with its
service the electric interest will become
| strongest and absorb the gas interest"
That last remark is worth bordering.
We quote again:
"Whenever it electricity Is brought
into use 1t has proven an educator IN the 1
use of light and has caused an increase IN me
consumption of gas" "Gas has not super
seeded oil in fifty years.
We quote once more Mr.. HICKENLooPEB.
| president of the Cincinnati Gas-Light and
Coke Company:
"If even to supply an imaginary want
| the citizens of any city desire the intro
| duction OF electricity why should gas-menl
stand idly by and see citizens imposed
| upon by the introduction OF cheap, IN,
secure, and dangerous system operated
with view not to accommodate the pub
! lie and earn a dividend, but rather by de-
preciatIng the value of gas property to
| force the purchase of worthless plant at an
exorbitsnt fgure?"
Hon. THOMAS TURNER, president of the
American Gas-Light Association. says:
Illuminating gas - must remain, as
il has been in the past, the light best
adapted, all things considered, for unlver-
sal artificial illumination and heating"
This last is sweeping but most slgnih-
cant remark. 1t warns US at any rate &c
| make haste slowly in arriving at conclu'
sion as to the worthlessness of gas.
Hon. A. NJ. NORTON, president of the New
England Association of Gas Engineers
says:
I'm the essential elements of cheapness
reliability, and adaptation to general use
gas retains decided superiority owe
| electricity"
This was said February a, 1889.
We quote these opinions not as askinI
our city fathers to adopt them, but as re
minding them that there are two sides eve
| to the electric-light question.
|