Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-05-18
WILL NOT DEDICATE
V|ADUCTS TO CITY
Power Company Withdraws Of
fer to Transfer Strategic
Steel Bridges.
AMENDS ITS APPLICATION
Asks That Committee Disregard
Original Petition and Con-
struct Franchise Itself.
AMENDS ITS APPLICATION

Because Of new and unexpected forms
OF competition arising from the FREQ
use Of the streets by jitney busses, and
veloped in certain quarters to the city's
taking over these properties. the vir-
ginia Railway and Power Company.
through Vicc-President and General
Attorney Henry w. Anderson. last
night withdrew its offer to dedicate
to tho city three steel viaducts and
Forest Hill Park in partial exchange
for new blanket franchise, and asked
that the tentative ordinance submitted
to the Street Committee in November.
1914. be withdrawn, and that the whole
matter OF framing n new franchise be
taken up by the Council anew. City
Attorney Pollard was not present at
the meeting, but at the request of Mr..
Anderson the statement was received
and heard. Others present for the COM
pany were Thomas s. Wheelwright,
president, Fritz Sittcrding, vice-presi-
dent and Captain y. 3. Guigon, general
attorney. a large number Of citizens
listened to the statement.
MEMBERS COMMEND
FAIRNESS OF PAPER
Several members OF the committee
expressed an appreciation Of tho fair
ness OF the paper, and Edgar B. English
offered a motion that actual considera-
tion OF the company's position and
statement he deferred to n meeting to
be called by Chairman Gilbert X. Pol
lock, and that the committee request
Of City Attorney Pollard his opinion
IS to the legal rights of the Council to
grant the franchise asked by tho COM
pany.
Preliminary to the reading of the
statement. Mr.. Anderson made a short
talk. laying emphasis on the statement
that the company could not operate and
exist without the assistance and CO.
operation OF the people, and that it was
willing to afford the best service it
could. compatible with a living reve-
nue..
In brief form, Mr.. Anderson recited
the history of the railway company
since July l. 1909, when It acquired
the street railway. light and power
properties in Richmond at a foreclosure
sale. "At that time" he said, these
properties had been in the hands of
receivers for five years. and during
that period had only paid interest on
S2.l50.0oo of underlying bonds, the re-
mainder OF the capital invested receiv-
Ing no return whatever. and the sur
plus earnings being put back into the
property in improvements"
EXPERTS HAD RECOMMENDED
NEW AGREEMENT WITH CITY
Prior to the acquisition Of these prop
critics, Messrs. Ford, Bacon and Davis,
OF New York. leading traffic experts of
the country, had said that the Rich
mond franchise requirements were such
as to prevent the company from earn
ing fair return on its physical prop
erty, and recommended that new
agreement be entered into with the
city to enable the company to give the
best service to the community, and to
develop Its business along lines of rea-
sonable profit.
since July l. 1909" recited Mr.. An
derson. this company has expended
approximately s2,50o.000 of new capitali
in the development of these properties,
and bringing them up to a state Of eff-
cheney which enables the company to
render the present service to the com
munity, which. it is submitted, is un-
surpassed by that enjoyed by any other
similar community in this country, and
at rates which are lower than those
existing in any other similar COM
munty.
SAYS HARSH PROVISIONS
HAVE EMBARRASSED COMPANY
The harsh provisions of the exist
ing franchises. which were the results
of struggles between competitive com
panies. and the short term for which |
they have to run, have been a serious
embarrassment to the company in its
operations and in securing the ncces-
sary capital for these DEVELOPMENTS |
An instance of this will be found in |
the fact that when the company made |
Its last sale of bonds to cover the cost |
of it's new power station and other eX-
tensive improvements. the bankers pur-
chasing these bonds offered to give 5 |
per cent more for the bonds If reason
able franchises could be obtained than |
they could pay under existing condi- |
tions, which meant an immediate loss
of not less than $4,000, with benefit
TO no one. These conditions are con-
stantly growing worse"
In addition to the new competitive |
conditions which have arisen TO en-
barrass the company and have required
of 1t larger investments Mr. Anderson
said that the outbreak Of the struggle
in Europe had made 1t manifest that
1T would be extremely difficult even
oiiuSi liic must laNOTdDle C1ECum-
stances. to secure money for the de-
velopment of local transportation sys-
TENS for some years to come. and that
1t would be impossible to do so where
the franchise conditions were such as
to make such investments unattractivc.
EUROPEAN WAR MAKES
COOPERATION NECESSARY
Under these circumstances" said
Mr.. Anderson. the company felt inn
PEELED by a sense Of duty to its security
holders and to the public which 1t was
endeavoring to serve, to present the
facts to the Council of the city of Rich
mond and ask for modification of
existing franchise conditions and cx-
tension of franchise limits which
would tend to remove this embarrass-
ment and place the company in a posi-
tion in which it could continue TO de-
velop these properties. render an ade-
quate and efficient service, and con-
3continued on Eourth Page0