Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-05-14
HENR|CO COUNTY GAS
CASE IS FULLY ARGUED
ion Over Rates Fixed in Fran
chiscs Is Chief Question:.
NORTHERN SUBURBS AFFECTED
Company Says 1t Is Losing Money at
Present 00-Ccnt Rate, and Seeks
Right to Raise Price for Gas To
S1.10.

argument as TO tho jurisdiction OF
the State Corporation Commission over
rates charged by public utilities. which
have franchises from localities in
which maximum rates were iXcd.
consumed the hearing yesterday before
the commission on the application of
the Hcnrico County Gas Company for
an increase in its charges. Alexander
Ii. Sands representing the company.
contcnded that the commission has
jurisdiction. while Assistant City Attor-
ncy George Wayne Anderson argued
that the rates are matter OF con-
tract and cannot be abrogatcd by amy
power.
The rates were fixed originally by
franchises granted by the towns Of
Barton Heights, North Richmond. iim7
ter Park and Highland Park. all of
which arc now part of the city OF Rich-
mond. The old rate WAS Sllo a hum
dred feet. with discount ii paid
within ten days. which reduced IL TO
Slo5. In the franchises il was pro-
vided that within three years after
the towns had been annexed TO the
city. If such annexation ever took
place. there should be a reduction 10
90 cents. The three years expired in
1917. and the company reduced it's
with Increased costs of operation it
cannot make expenses. and requests au-
thority 10 resume the old rate. II is
claimed by the company that when 1t
agreed TO the franchise provision re-
ferred to- it was the understanding
that no attempt would be made at
annexation OF the territory served by
it until just before the 1920 census.
ANDERSON HOLDS FRANCHISE
AS BUILDING CONTRACT
Assistant City Attorney Anderson
rested his entire case on the franchise.
which he termed a contract which can
not he set aside. MIR. Sands argued
that a contract OF this sort was evil
IDENTIFY intended by the makers of the
constitution 10 stand only until
changed conditions demanded its mod
itication by the Corporation Commits
sion.
He contendcd that rs his company's
business is not confined to the County
Of Henrico. where it IL located. no To-
cality has jurisdiction, which is lodged
with the commiss ion. Cases decided
elsewhere were cited in which il was
held that no city or town council or
county board OF supervisors has au-
thoriiy To grant Il franchise to pub
lie utility in which maximum rates TO
the public are fixed, unless such power
has been specifically granted to il by
law in each Individual case.
Both sides are 10 file briefs on the
subject AZ I'm early date. The COM
mission designated its 6ne iueer. Jud-
son G. Dickcrman, TO take evidence as
10 the rcasonablencss OF the gas rate
now charged by the company. and Mr.
Sands flied papers as to its financial
condition including an amplihcd copy
Of tho comm '.sion's questionable.
This uucstior Of jurisdiction is re
Eardcd by the Corporation Commits
sion. il l., stated. as perhaps the most
important since The orcaniza ION Of
that body. The Virginia Western
Power Company. which presented what
will perhaps be the test case, has fled
printed brief: supporting Tho jul'i:dir
;ion OF the commission, while the "ari-
oUs cities and towns served by il VIII
NJ" theirs in :. few days.
In the cHSc of Martin & Sons against
! the Norfolk < Western. Seaboard Air
+ Line and Atlantic Coast Line heard
/ Thursday the commission has rendered
an opinion 20 the effect that the rate
/ now charged on uncomni essed cotton
/ between Petersburg aud Norfolk is
not unreasonable. and that to make q
I decidedly lower rate would he 10 create
/ n Pe,ershurc. a. the expense oF tho
( carriers. an Unm2 tur.:l cotton market
/ not justified nv productive and manu-
i F.r.,-i,U .or1i,iprS