Daily press. [volume] (Newport News, Va.) 1896-current, 1910-12-07
Common Council Instructs
Committee to Undertake a
Searching inquiry,
HAS CITY AUTHORITY
TO FIX WAFER RATES?
Attorney Massie Advises That Cues
ton Is One for Court TO Pass Up
information from Other Cities TO be
Obtained for Comparison With Lo-
cal Rates and Conditions.

After a debate consuming more
than an hour. the common council
by unanimous vote last night sent
Councilman Harris water ordl-
nance" to the committee on fire de-
partment and water with instructions
TO make full and complete inyesti-
cation OF every phase of the matter
and report at subsequent meeting
of the council. This measure, which
provides that water companies sup
plying water to consumers in this
city shall furnish such consumers
with meters and charge only $3.50 per
quarter as an advancement payment
instead OF 81 per quarter, came TO
the council from the committee on
health without recommendation. Its
patron. Mr.. Harris, moved its adop
ton. but after hearing other members
discuss the measure. he withdrew that
motion.
There was question in the minds OF
come of the councilmen as to the leg
atty OF the measure. and City Attor-
ney Massie was called upon for an
opinion on the subject before the gen
eral discussion of the ordinance had
progressed very far. Mr.. Massie dis
cussed the ordinance at length and
said that 1t involved ques tons upon
which he would rather let III, courts
pass. He went on 20 say that the
matter of rates which shall be
charged by public service corpora
nj Qtfonftnn
OF late and that 1t has been generally
held that such corporations are en-
titled to their expenses and reason
able and fair dividend on the money
invested. That dividend in Virginia,
he said. has been fixed at six per
cent
Measure Fixes Rates.
Mr.. Massie said that the ordinance
as drafted fixes the rate which the
company shall charge for its water.
He was not prepared TO say that the
council had right to do that, de-
ciaring that he would rather let the
courts decide that matter. However.
he said that he does not think there
is any question about the right OF the
city TO say that the company snail
not charge a consumer for water
which he does not use.
Councilman Ford advised the coun-
ell TO go slow in the passage of any
measure regulating the water COM
pany. He said that he believed that
many of the patrons OF the company
are paying for more water than they
use and that there should be come
legislation to relieve that condition.
but that any action the council may
take along that line will be fought in
the courts by the water company and
he wanted to see the council act wise
ly and judiciously and not be thrown
out of court
Compare With Other Cities.
Continuing. Mr.. Ford said that he
thought IL would be wise before action
is taken for the council 10 compare
the rates charged here with those
charged in other cities and compare
the cost of production and plant here
with the same costs in other cities.
He also thought il would be well to
examine the books of the company
and see whether or not the company
is making a fair return on its invest
ment
After Mr.. Ford concluded, Mr.. West
moved that the ordinance be referred
to the committee on fire department
and water with instructions TO furnish
the couucil with such data as he had
mentioned and that motion ultimately
prevailed without dissention.
Speaking to his resolution. Mr.. Har-
ris said that when the committee
considered the ordinance. representa-
fives OF the water company appeared
before the committee and talked
about new industries coming here
and that any action by the council
would tend TO hinder tie landing Of
those industries. lie said that this
same plea was made by the water
company whenever any legislation ef-
feciing II is introduced in the coun-
Gil. .
Referring 20 Mt. Ford's suggestion
to examine the conipany's books. he
said that no one coald get any def
mite information from the books as
TO what the company makes and what
a. has expended. The books could be
fixed ne said so tia; none Of the
details desired could be had.
Mr.. Nielsen taxes Exception.
Mr.. Nelson took exception to the
statements OF Mr. Harris and declared
that Il would be possible to get the
expenditures and receipts Of the com
pany from their books and TO get
any information the council desires.
And he said that Il would be an easy
matter TO verify all Of the data OBJ
tanned.
Cosnciimen Hundlcy and Reynef
spoke against the resolution Mr.
Reynes declared that The company is
not making one penny Oh us invest.