The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-01-06
Argument Had on Bene-
fits and Disadvantages
of Competition.
OTENOT REACHED
B Y G 0 M NJ | L T E E
Final Action Is Postponed-An-
derson Opposes Franchise to
New Concern, While Martin
and Crenshaw Present
Arguments in It's
Favor.

Argument on the proposed franchise
ior operating = System Of poles wires
and condu!ts in the streets OF the city
by the Richmond Power Corporation
ior the sale OF current generated at
the Midlothian coal mines, In Chester
held county. was completed before the
council Committee on Streets last
nlBht. All parties appearing for or
against the proposed franchise were
neard, and the committee rose at mid
night TO meet shortly at the call OF
chairman Adams to take final action
Attorney Henry W Anderson appear
cd for the Virginia Railway and
Tower Company. opposing the granting
81 competitive rights. which he stated
could only lead to duplication Of plants.
double systems Of poles wires and CON
duits. possibly disastrous competition
Tor time. and an eventual cons olida-
ton. when the public would ba left 10
bear the burden imposed
Major Miles NJ. Martin represented
the applicants. taking W III some de-
tall the proposed amendments 10 the
franchise as arst offered ana :. Dab
ney Crenshaw. one Of the promoters
OF the new enterprise, made state
mcnt of his connection with Il and OF
the proposed Developments
Bond Not Needed.
An opinion vas rendered b. City At
e"iHe- fo!Iatu, on POINT raised at Il
former meeting. TO the effect that the
committee nigh, proceed with con
sideration OF the franchise before
bond was put up. the bond to be given
before action by Council
MIR. Anderson opened the argument,
saying that the only reason as yet adj
vanced for granting such 4 franchise
vas the beneht to the community from
the competition in power. but said that
the city had no assurance as yet that
the Power Corporation would ever
build the plant proposed. or that II
erected would furnish any competition
In price. and that mere paper franchise
might be held over the head OF his
company TO prevent II from marketing
us securities and providing for bet
terments The theory that competition
Is the life OF trade. Mr Anderson said.
was too generally accepted-thnt in
the case of public service corporations
broader experience had shown that
such competition was not beneficial to
the community. but Was destructive OF
its best interests
Claims difference.
lie drew broad distinction between
private and public corporations, CON
ceding that IN private enterprises com
pctitian was beneficial. the owner be-
ing at liberty TO retire a any time;
but held that In the case OF quasi
franchises granted by the State or mu-
nicipality, the company could not re-
tire even though its business was con-
Quoted at loss. The modern idea OF
public control over corporations. he
held. tended 10 guarantee adequate
service at reasonable rates.
Holding that the interests Of his
client were tied up with the best in
tcrcsts of Richmond and with its
growth he urged that tile city give
fair treatment and adequate protec-
lion to Invested capital The persons
applying for the franchise. he said had
failed 10 show that the existing COM
pany was not giving adequate service
al reasonable rates AS to invested
capital. he stated that his company
had spent in the last year more than
the entire capital proposed 10 be In
vested In the new company in better
;ncnts of It's system.
Major Martin Replies.
Major Martin responded in some de-
tail, admitting that while his proposed
plant would pay the bulk of its taxes
In Chesterfield county. yet most of the
money would come in trade to Rich
inond. He said that his company only
asked Il fair and square ordinance on
tho same. terms as those oil the exist
ing company, and that the city should
not build Chinese wall and have It
so out that Richmond was 2 finished
city. and wanted no further Invest
mcnt OF outside capital for it's de-
vclopment" He asserted that since
l90i the rates OF the old company have
been increased from - to 40 per cel...
and that the old company is earning
handsome return on its bonds lie
said he had submitted the proposed
amendments to his principals and they
had agreed to accept them.
in re ininHnr oh
acterized Major Martins speech as ono
of "glittering general.ties, containing
no statement of fact or argument
which il; Is necessary for me to an
swer." He defended his company on
several points. however, and also his
own position from illusions BY Major
Martin as TO his argument some years
ago on the question of parallcling the
Richmond, Fredericksburg and Po-
tomac Railroad. saying that the cases
were widely different. the interstate
tiaflc of that railroad not being under
State control.
Answering Major Martins statements
as to competition in furnishing power
in other cities, he stated that In many
instances the competition was merely
on paper. different companies being
held by the same interests, as was the
case here previous to the rece!vership.
The five plants at Niagara, he stated.
supply different communities. and are
not in competition: in Boston there are
seven companies. but all arc under
one ownership control. In San Fran
cisci Buffalo and st. Louis. points
cited by Major Martin, he assorted that
the same conditions prevailed.
Louisville was tho only city In his
knowledge, he stated. whore there were
competing electric light plants. MIR.