The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-06-18

protect tho interests of the city. 1t
does not guarantee competition that
| VIII in the end bring any benefits to
/ the consumers. II the recommends
| ton of the Committee on Streets IS
acted upon. the ultimate result can
l only be either an increased cost of
| light and power to all consumers, both
! large and small, or deterioration in
service. or both. This is vital mat
streets for an end that Will inevita-
bly, be to make the city's people buy
back the rights thus given away by
an increased cost of electricity. Rich
! mond must not assume this burden No
other interest except the inal good
OF the citizens should be considered.
This good Is the maximum OF service
at the minimum of cost
We do not believe that competi-
tion In any form is the proper means
OF controlling public service corpor-
atoms. But If il Were the franchise
as at present framed does not guar
antee even the possible Immediate
is passed, the Henrico company viii
be forced to offer no competition out
side of the profitable central district
unless compelled to do so by an act
of the Council. The franchise requires
that it offer routes for the approval
of the Council, not that it duplicate
the present service. The company
petition in the profitable central dis
,trict 1t will force the Virginia com
pany 10 meet its competition here. AS
result. the Virginia company Will
bc forced To raise its rates to the
Improbable outlying districts. or fail
to extend It's service because of the
cost of central competition. II the
council tries to force the new COM
pany to extend it's service into the
noncentral territory. the effort can be
contested in the courts. This is the F,
expressed opinion OF the Assistant
City Attorney. This litigation can be
continued through a long period of
years Meanwhile, the whole city will |
suffer through the failure OF either I
company 10 extend its service. If tho
city wins this litigation In the end.
the new company will be forced into
n Held which 1t now refuses to enter
because 1t cannot afford to compete.
If 1t cannot compete now. ii cannot
In the future, and the result will be
It's absorption by the Virginia COM
pany Then the whole cost of its du-
pllcated eQutpSient, the litigation and
all other charges will be added to the
capital investment of the old compa
ny and the consumer will be com
PEELED TO pay the interest on this
burden. The courts have held that
this extra charge is just
Any competition the Henrico COM
pany offers will result in a cripnlfnc
Of the ability OF the present comna.
NY to extend its lines or reduce its
rates. Any competition the nenrlco
can be forced to offer viii
re:mlt in It's absorption by tho OLD
company. And In each case the con-
sumner, the city. the man who wants
Hight and power. Will be forced to pay
all the costs. Nobody else VIII sui.
fer 1t will he the pubic.
The Council cannot afford to make
n gift of the right to exact tax
from the people. The interests OF the
city are its sole concern. The nnal
hope held out by this proposed fran
chise Is that the city will be compelled
to regulate two companies. or pay the
cost The present service is admitted
to be adequate at a fair rate. Why
not reserve the true right of regula
tion until it is demanded by condi-
tons?