The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-06-16
no Nor GRANT FRANCHISE.

Company should not be granted the
electric light and power franchise
they are now seeking. The Richmond
and Hcurico Railway Company, after
celebrating for eight years. finally
decided to build and operate a street
car line in this city in competition
with a company that was already
furnishing adequate service. The in
ycstmen; Of tho Richmond and Henrico
Railway Company in this competing
street cart line IS not believed to be
profitable.
The Richmond and Henrico Railway
Company now seeks to enter the field
OF supplying light and power to the
people Of Richmond. In asking for
Henrico Railway Company does not
allege-nor does any one else ancge-
that the rates now paid by the citizens
OF Richmond for light and power are
eXorhitant' or unfair. Nor does the
Richmond and Henrico Railway Com
pary offer promise. or hold out
any benefits 10 the people, OF Rich
niond by a reduction In such rates.
The Richmond and Henrico Railway
Company has so far contentcd itself
with the argument that It was on
titled TO the right OF competition in
citizens OF Richmond. This principle
The Ttmes-Dispatch wholly and alb
solutely denies. There is no Inherent
right OF competition for supplying
public utilities. The experience OF
the world bears ont the statement
that competition. where 1t does exist
in municipalities between local pub
lie service corporations. only lasts for
a short while. and the temporary ad-
t'antages gained by the consumer in
Improbable rates are ultimately more
than paid for by the public.
This is how /, works out The
competing companies after more or
less extended show of active compe-
tition. get together pool their bust
ness, sell out the one to the other.
al load upon the public in the shane
OF bonded debt the whole cost of
'-'V N'''pc''A'o'l' mere Is no alchemy
In competition which can reduce the
cost OF production below the price nx-
e1 by Intelligent and successful opera
tIon. Nor could competition give 10
Richmond or any other city n Steady
rate lower than that which is nXod
by the cost OF supplying the service.
In the case before lis the sole and
only guiding principle should be the
welfare of tttA citizens. In the light
oil experience. there is no doubt that
tnst welfare Will be better served by
regulating the Virginia Railway ana
Power Company througr, the Corpora-
lion commissLon, or through the City
Council 'lan. by 'opening the flood
gates to q competition whose end Is
already foreseen, and whose result
VIII be to load upon the shoulders Of
thIs community the interest charges
:oF the sums paid by that company.
wnich with or without the waste OF
me rate-cu'ting war. acquires the
other.
The people OF Richmond must bear
IN mind that the rules OF business
are Just as fixed as the law of cravi-
tauon Neither company viii linden
n'te!y. furnish l!ght and power at a
loss They Will find a means 10 d..
vide the city, or to divide the cus-
toners or raise the rates. or TO con-
foidate the companies. and so save
themselves from hnaaci-l destruction.
TING Is the experience OF the worla.
and even 81 II We're not the experi-
eucc OF the world II would be the fore
seeaoic and Inevitable re.uit OF what
10 now being attempted in Richmond.
Law 10 law. Business is business.
Ana prctestations before the Council
cannot, and Will not. proven; conson-
cation afterwards. Waen such con.
soi!dat!on takes place, the cost OF
the whole undertaking--that IS 10 say,
the cost OF the money wasted in du-
1.icn,ion OF plants; tho money ex-
PENDED In securing franchise: the
money Loot In operation--are ali gath.
cred into a heavy and crushing bur.
den ana laid upon the defense!es.
backs OF the ultimate consumers.
Why should Richmond bow its bach
10 receive this burden? why shou.t
we restr!c, 1he opportunity OF mi.
city 10 grow BY placing an obviou
and unnecessary cost upon the grea
and important Industry of supplyin.
electric power?
II has been stated, ana not denied
That the rates for light and power 70,
Richmond to-day are lower than ,hos.