Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-04-17
,,o,r,o, OBSERVATION-DISCLOSURES Gas-Plant

Natural Monopolies-Our Gas-Plant.
The Times has another article in its issue
of Yesterday on the subject of the electric
hight plant and the city's gas-plant. Our
heighbor, however, we regret TO say, has
not perceived the difference between
natural monopoly and river open to all
The world. The Tunes says
"The DISPATCH thinks there can be no private
rival electric plants in Richmond because the
electric-lght consumers will have to pay for
zach one, and therefore all at last, win be clec-
tric plants constructed and maintained by the
oeope of Richmond. According to this idea, II
there were two lines of steamers plying the
James river between Richmond and Norfolk
they would not be rivals, because both would be
hupported by the travel and traflc between the
xwo places"
On the contrary. James river is the very
reverse of q natural monopoly. 1t Is open
10 all corners. If it were open to only two
lines of steamers the competition between
them might be a real competition. Not so
with our passwords. The principal streets
are already occupied by all the pipes the
city can or ought to allow to be put down.
Nobody would seriously propose to CON-
pete with our existing gas-works II they
were sold out TO company of private IN
dividuals. A real competition would not.
we insist, be possible under such circum-
stances. A natural monopoly IS uncon-
trollable except in the hands of the people
or their representatives or agents. We will
try to make our position so clear to the
Times that it will not again suspect as Of
not knowing the difference between river
which invites the whole world OF vessels
20 its bosom and natural monopoly
which has the power to prevent all CON-
petition with itself. Try to imagine what
competing gas-works in Richmond would
be.
II the case supposed--tbat il. the sale OF
her cas-works by the city-there are but
two results possible. One of thetwo must
necessarily follow. Either the company
purchasing the gas-works would have no
competition, or else the competing CON-
pany's new gas-holder. new pipes. new
bitches. and all its other serviceable pro-
perty would have to be paid for by the
consumers of gas. Somebody would have
70 pay for them. and we all know 1t would
not be the spectators in gas-works who
would do il.
Again: The city would either receive fol
Its gas works a price 80 low as to enable
che purchasers TO shut out all companies
which might desire to compete with the
new purchasers. or else the city would re
ceive prico 50 high that the new pur'
chasers would have to transfer the cost Of
the property from their own pockets to the
pockets Of the consumers OF Gas. Allow price
the city could not afford TO accept. A higt
price would only result IN causing the
new purchasers 10 transfer the extra pzic'
20 the peoples pockets. If the city sells
at low price. she loses money on bel
plant. II she sells at high price, the
purchasers must look to the consumers O.
gas 10 pay the money for them. Here
again, we should have no competition /
the new purchasers could control the mat
Ger; but even if We had new bitches, new
pipes new holders, and new competing
fixtures Of all sorts, the consumers Of tn
gas would have TO pay for them. In
word. II two gas companies compete ant
each one buys plant. the consumers 0
gas will necessarily pay for both plants.
one company fails. or Is bought out o
bought over by the other. there is o.
end TO competition. and natural monopo
ly stands revealed before our eyes, mo
nopoly which viii become the peoples ser
want only when 1t becomes the people
property