The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-06-11

cents. average 6.s6s; Baltimore, max
imum 10 cents. average SOS; St. Louis.
maximum IL cents. average 5.5: Chi
cage. maximum IL cents. average So;
Boston, maximum II cents. average sc;
Richmond. maximum 10 cents, average
4.i4
This shows that the average gem
cral rate charged in Richmond is near
~ 20 per cent. less than the lowest in
this list. 1t is my honest opinion. all
though the officials Of the company MAY
not agree. that the company is losing
money on its lighting and power bus
mess at such a general average rate.
Ii is not what is regarded as an nde-
quatc return.
How II worked Elsewhere.
II was once with the East River
Gas Company, of Long Island. which
was turned over to ihe Consolidated
Gas Company with Increased capital.
Some OF the streets we tore up had
eleven or twelve pipes where ono
would have been sufficient There has
come a constellation; there Is all
that dead capital. The consolidated
company is protected in it's rates by
the courts in earning fair return
on the total of capital fairly invested
by the various competing companies
There is now over fifty miles of USE
less gas pipe in the streets Of Balti-
more. There were three plants where
one would do the work, and the Pub
lie Service Commission of Maryla nd
allows the consolidated company to
charge rates to earn a fair return on
the entire investment. So the com
Inunlty is paying the bill.
THE electric situation in Baltimore
is similar. II has been the experience
of every large city first in gas and
then in electricity. Baltimore is now
saddlcd with 100000 bonds for USE
less duplicating plants. with wires
criss crossin'D Zach other. and the COM
pany is protected In its charges and
earnings in earning only fair re-
turn on these bonds. AS usual the
public is the goat.
In St. Louis 1t was the same thing.
Capital has been piled up in four or
five plants They have consolida ted.
increased capital. and the company is
now allowed in fixing it's rates to
earn fair return on miles of useless
wire.
Chcnpcr TO Reimburse Them.
What would happen here? There
would be a tight. lot OF useless capt.
tai invested. the streets torn up. q
consolidation ana the public pay in
creased rates to pay interest on double
investment. No one gains. The city
would save a great deal moro money
by reimbursing the applicants for what
they have already spent.
The nuisance value" of a Compel
ing franchise has become n we'll re-
cognizcd term in discussing compcti-
| ton. II is an economic crime to re-
open doors to competition with
| the mistaken notion that the COM
munitv will benefit"
! Mr. Anderson followed in a clear
argument. reviewing briefly points
outlined before the subcommittee
when the franchise was being framed.
He urged the committee not to grant
| a franchise out of sympathy for those
! who had built an unproftablc railway
line parallelling within a block eX-
listing lines and developing no new
! territory. When the old traction
| company came into the field, he
| showed. the old company was not
rendering a proper sevice to the COM
munity. AS to regulation, he believed
such power now lay with tho
Corporation Commission; il it did not
he ould gladly support bill tc
place 1t there. III any cf.se the ordi-
nance itself specified that the Coun-
Gil reserves the right to Impose suct
other regulations as It may from
time to time deem proper" wwhcl
ne contcnded was itself ample regula-
ton.
Frederick sburg Franchise.
Mr.. Anderson also explained the sit
uation in fredericksburg to which ref.
crcnce had been made in "a Service
talk" stating that Mr. Gould is now
erecting a concrete power house Their.
holding the only franchise In exis
tence. the old plant. once sold under
/ 1areslaaurA -tn1>-SshQ.-> haXina -anDiiaf