The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-05-17
Richmond and Hehrico
Petition Is Adversely
Reported.
RATE AND SERVICE
F AIR TO PU BLIC
Subcommittee on Streets Urges
That Question Be Fully Con-
sidered Before Permission
Is Given New Company
to Enter Local Field.
Hear Matter Later.

While reporting d draft OF n ordi-
nance granting n light and power iran
chise TO the Richmond and ienrlco
Hallway Company. the subcommittee on
Streets. by a vote OF . TO :: yesterday
recommended that the full committee
carefully consider the advisability and
propriety OF granting any competing
franchise under conditions admitted
10 exist in Richmond. The report
statas that the evidence shows that the
service OF the Virginia Railway and
Power Company liz adequate, that ITS
rates are as low or lower than in cities
similarly situated. and the subcomn.it-
tee raises for serious consideration the
whole question of fairness TO invested
capital and the question as 70 whether
there would be any benefit to the COM
munity in again tearing up thc' streets.
installation OF duplicate systems OF
conduits. poles and wires. entailing q
duplicata capital charge on the COM
munity. with no prospect OF lower rates
and no guarantee Of better service.
and the probable result Of consolida
tion. proving n serious handicap TO the
existing company in the extension of
Its business and eventually bect ming a
burden on the community.
Special Meeting Called.
The Committee on Streets received
the report last night and directed that
within tho nest two weeks when II
can be considered. The report OF the
subcommittee was drafted by Council
man Gilbert X. Pollock and was offered
in the subcommittee as a substitute Tor
S motion of Councilman Ferguson to
the effect that the application for Il
competing franchise be rejected The
report was adopted b. the following
vote:
.ves->I.ssrs Adam, p6,,oo,, va,
: derlehr. Milier and Don Leavy; noes
Mcssrs Moore and FERGUSON. 1T was
explained that Mr. Moore thought the
report too drastic and Mr.. Ferguson
that II was not drastic enough.
Text of Report.
The report or this subcommittee fol-
lowe in full:
May nth. 1912.
To the Committee on Streets:
Gentlemen.--Your subcommittee to
whom was referred the petition OF the
Richmond and Henrico Railway Corn
pany. praying for the right &c con-
struct and operate plant for the
furnishing OF light and power TO the
citizens OF Richmond. with directions
TO report proper ordinance beg
leave TO return herewith an ordinance
marked "a" framed by your subcom-
mittee with the advice and assistance
Of the City Attorney. which is reported
Tor your consideration.
In the discussion Of this ordinance
several questions were raised. all Of
which were carefully considered by
your subcommittee.
Question Of Rates.
First among them was the question
as To the fairness of the rates of the
existing company and the adequacy
OF the service furnished BY IL, III this
connection. the applying company. as
well as the existing company. were
psked to nle such data before your sub
committee with reference thereto. as
would enable them to come to con-
clusion upon these points. Your sub
: committee Is OF opinion from the data
furnished that the service furnished
nv the Virginia Railway and Power
Company is adequate. and that its
rates are reasonable, In fact lower
than those charged in cities about
tho size OF Richmond and under SINH
lar conditions.
Fairness to Invested Capital.
Another question involved was
the question OF fair dealing with
panies. The Virginia Railway and
Power Company has invested many
millions of dollars in their stree:
railway system and in the d evclopmert
OF the light and power business, and
are at present increasing this amount
hy the eMpe nditure OF large sums here
In our midst In improving their rail-
way system as well as providing an
additional power house and equipment
to keep pace with the growing cond-
tions in Richmond in the furnishing
Of electric light and energy. This
Richmond and HenricO Railway Com
pany have constructed a well-eq,i'pp9d
street railway. including their via
duct, under a franchise granted sew
eral years ago. but which ranchise,
when granted. contained no suggestion
that il would desirs or nc permitted
10 enter the light and power field, and
this application therefore CONES In
the nature OF nav proposition. hav-
ing In view active competition in that
branch of the service Therefore, In
determining this second proposition.
It behooves the Council to carefully
consider whether to grant such COM
retitive franchise would be fair to
both companies and whether It would
be beneficial to the community
Contentious Urged.
IT has been urged by the Virginia
Railway and Power Company that in
view of the proof adduccd that It's
rates for light and power, re reason
able and the service adequate, 1t Is
unjust to the invested capital engaged
in that enterprise to subject II TO com.
petition. which would necessarily re-
tard It's development and handicap II
In the extension OF It's service. with
out beneit to the citizens or the COM
munity.
The applicants at this time have no
capital whatever invested in the light
ing and power bus SIS in this COM
munty, and the granting to them OF
franchise to do business as prayed.
might mean the investment here OF