The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-05-18
ctry's BENEFIT THE BA>5c QUESTION.

III RETAINING from positive recommendation
II ttts
pIioatIoa Of the RisRHfond AMI Henr1co Rail-
ea8 coHpoae for Il light aud power franchise
Considering tbs importance of the question
raised aud in the light of the history Of pub
lie service corporations in Richmond It's Fes-
soned reference OF tho trancIse to III FuI1
committee would seem the part Of wisdom 1t
nov becomes the duty OF thar committee TO
spare no time. trouble, or study 10 the end Of
doing exact justice between The existing and
16o applicant companies ana tho city OF Rich
aond
In approaching the question OF competing
light and power company, the central endeaFor
should he to determine as nearly o. possible
the eHeet Of such action or the city. Public
service corporations are necessary factors in
.yery municipality Rat they are creatures
OF privilege ana not 50 70 speak OF right, ex-
cent in far they are entitled 10 square
eeal based on the needs of the public In
sfressine the rights OF invested capital in such
ii should always be borne in mind that
even blow 10 invested capital is justified.
when The public convenience is 10 be consid-
cred In tle newly realized relationship he
tween sbe public and public service corpora
items this is the hxed and definite condition
precedent,
Second to the interest of the public and the
pablic benefit. The committee viii, OF course.
consider the present service. the present rates
the possibilities OF lower rates in the future,
ATOMS with expanded service to meet the
Reeds 81 growing community. After inyes~
tigaion OF prevailing rates in Richmond based
uHon statements from both the Virginia hdtl-
seaa and Potcer CompdnN aud the Riehm0nd
dad Hs0T76o FdIT71dV Company the snb-com-
mittee concludes that they are reasonable and
L. tact lower than those charged in many
other cities OF similar grade II finds rhat
ihc service is adequate. and that there are on
foot progressive plans TO meet increasing de-
mand. II finds. also that the granting of a
new franchise TO a competing company would
necessarily. TO some extent. impair the returns
on invested capital and would tend to dis
courage extensions and improvements. and
generally 10 precptate the bad economic CON
dition of multiplication OF plant in The supply
Ct a service already sufficient.
These are the opinions. rather than the def-
rite findings OF the committee. II does no
more than suggest them to the consideration
OF the committee sitting as 3 whole. And Il
must be said that such conclusions are borne
ont by the volume of experience OF other com
quantities. The phrase natural monopoly" may
be attacked with the pal assertion that No
monopoly II natural or right irr the eye of
Justice But ii mus' be recalled that the ques-
ton Mt bottom is not justice to the corpora
I is,ss, esft irprtt> .faor M
community get justice unless II view the
problem of It's public utilities from a strictly
selfish view point When city is well served
by one company II is to the interest OF the city
IS we'll as the company, to that nothing is
done TO weaken the confidence of the corpora
tion III rs investment with the power OF
control of rates and manner of operation in
ITS hands it is the sound argument" that 10
subject satisfactory service to paralyzine
competition operate only to redtict profits
which would go into extensions or 10 justify
the maintenance OF rates which would other
wise be reduced It is a question az the city
getting the same, or worse service either at
higher price, or at the loss Of additional ser
vice
The Rtchmond end Henvico Rolttoqy COM
panp. maintains in Richmond a well equipped,
well operated, and useful line OF street cars
At considerable expense 1T built vaduet
which Is of great value 10 large portion OF
tho population But il has no present
Investment in light and power equipment II
the full committee on streets shall come to the
conclusion that the city will he benefited IN
this particular by competition. II ought unhesi-
fataEs to grant the franchise asked il il sp.
pear chat such action would mean no more
than equal service at present rates IL should
do both itself and the F4r0inia Eatheqg ana
Pore. Company the justice OF respecting the
iatter's investment Both in provision ia the
franchise and under the powers granted the
corporation commission, the rates for power
and lighting are subject to legal regulation
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