The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-11-04

1sbLvTc0 JuuuhtS 81 AsVos AZ fssDs
~ aecond.class matter under NC: OF Con-
Eress OF March 3. 1s7a
FRIDAY. NOVEMBER 4, 1910.
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THE GOOSE AND THE GOLDEN EGG.
City Attorney Pollard was entirely
right in his suggestion that in grant
Ing a franchise to the new electric
light and power company. special pains
should be taken to guard the interests
of the city, providing in the charter for
the prosecution OF the work under
conditions that would impose no hard
ship upon the new company, and at the
same time would protect the interests
of the city, as well as the rights of
the company now operating its lines
IN Richmond. In encouraging the In
svestment of new capital here, care
should be taken not to Impair the
value OF capital that has already been
invested. and in drawing the contract
with the new company proper regard
should be had for those who have al
ready planted their money in this soil.
There is disposition oftentimes In
efforts that are made to induce the
Investment OF new capital in public
utilities to estimate rather lightly
obligations that have been assumed
IN sense. by communities. We have
in mind another Southern city, in which
q very large amount of Baltimore and
Philadelphia capital was invested in
providing a water supply. The bonded
debt OF this particular town had
reached the constitutional limit. The
town had a wholly inadequate water
supply; 1t could not build its water
works by placing any additional bur-
den OF taxation upon ;ts people, none
of whom would venture their private
means In the enterprise, and it was
dependent, therefore, upon the attrac-
ton OF outside capital for the con-
Estruction Of a system which would as
sure the safety of property and the
health of the community. After much
negotiation and careful investigation,
something like a million dollars of
Baltimore and Philadelphia money was
Invested IN the building OF system
of waterworks that would furnish an
adequate supply for domcstic.uses, fire
protection and sanitary purposes. The
money was invested, and from the day
that the reservoirs We're built and the
mains laid down to the present time
there has been almost constant agita-
ton against the purchase of the sys-
TEN by the city, with the result that
the people who were induced to put
their money in the undertaking have
realized nothing upon. their investment.
In the same community. a year or SO
ago. active effort was made to induce
the investment or a large sum OF money
in the building of now street rail-
way system, where there is hardly bus
iness enough for one system. The
argument made by those who favored
this enterprise. in which they did not
have one dollar Of their own money,
was that the town would get the bene-
ht of the investment, whether the in
5vestors made anything by 1t or not.
It locked TO us.as If this was very bad
policy, regarding the subject from
broad point of view.
The moral Of these stories is that
Q community cannot be too careful in
The protection it gives to capital in
vested in what might be called COM
5nua!ty' enterprises A business house.
may fail BY bad management or by
disturbed commercial conditions, butt
in such case the failure is attributed
to the individual rather than to the
tcomnunity. The difference is obvious.
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