The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-05-12

Following its policy of frank and open dealing with
the public, the Virginia Railway and Power Company
desires to state briefly its position pending ap-
plicatons of the Richmond and Henrco Railway Com
pany for franchises in the city OF Rchmond:
The interests present controlling the VIRGINIA Rail
way and Power Company acquired such control in De-
ccmber 1902 a large portion OF the properties were
then in very bad physical condition as the result OF the
active competition which had existed for number OF
years preceding In the eighteen months which inter
vened before the Rccevershp those in control advanced
over 100000 in cash. in addition to their original
investment the requirments of the properties
including than 100000 expended for improve
ment Of physical conditions.
In JULY 1904 when the properties were placed In the
hands OF Receivers, the investment of those in control
aggregated over S4,5ooooo which they had received
no return and much of which unsecured. The Re-
ceivership lasted five years during which time the in
teres on this investment accommodating the
of S25oooo per In the reorganization those in
control OF the property received nothing for their stock
and unsecured investments aggregang large sums and
received only stock for large portion OF their
bonds The bonded debt OF the property was cut from
SI9oooooo to S95ooo,ooo largely the expense the
controlling interests The only hope OF recovering their
investment through making the common stock of
the new company valuable.
In the face of these conditions the controlling inter
cts have spent money freely the DEVELOPMENT OF the
properties and have given to this community service
both in street railway and light and power unsurpassed
in any similar city in this country and have asked moth
ing from the city except fair treatment
In 1900 certain persons in Richmond applied to the
Council for competitive franchise and pending the
nearing thereon the interests that time in control
OF these properties paid those applicants large sums
i'll securities to abandon their application Some of the
parties most largely interested locally in the Richmond
and Henrico Railway Company were among the appli-
for this franchise
In 1902 OF the same parties applied for and ac
qured in the name OF the Citizens Rapid Transit Com
pany, the franchise being exercised by the Rich
mond and Henrico Railway Company This franchise was
extended from time time and was not exercised for
period OF eight years, but stood as constant obstacle
and embarrassment to the reorganization and financing
of the properties of this company The final construction
OF this line beng unnecessary the public service con-
stutes an economic and financial without corrc-
spending benefit to the community
The Richmond and Henrico Railway Company is now
applying for four franchises one to do light and power
business and three for extensions its railway lines
in which it proposes parallel long distances the
lines of this company, only block away
The Virginia Railway and Power Company is opposing
the granting OF these franchises on two grounds. (
that the granting of such franchises is contrary to the
interests OF the city OF Richmond would not promote
its welfare Co that it would be unfair and unjust TO
the invested capital in this company
l. THE GRANTING OF SUCH PROPOSED FRAN.
IN
TEREsTS OF THE CITY OF RICHMOND
In ordinary industrial enterprises not subject to pub
Tic regulation and control the presumption is in favor
of competition. 1t has become the established policy
however, in all advanced communities with respect TO
public service corporations to substitute public rcgua-
ton and control for the expensive and disastrous
method of control through competition
private enterprise discontinue business when it
becomes Improbable The prices which charges Tor
its product in its discretion Ii the enterprise be-
comes Improbable the may change the invest
nlent
The public service corporation is compelled to render
the service and the public through legislative bodies and
commissions can require that service regulate the
rates at which is to be rendered Competition in such
service therefore unnecessary Tor the protection Of
public and is economic waste.
This is generally recognized At a meeting OF
the National Municipal League in this city in Novem-
Der the Committee on Franchises submitted report on
Model Franchise for street railways which it said:
lie we do NOT favor tho n