Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-08-25
COMMISSION RULES
RATES MUST STAND
Has No Power to Change Those
L Fixed by City Fran-
chises.
ALL UTILITIES COMPANIES HIT
Supreme Court Decision in Rap
Pahannock Railway Case
Sets Precedent.

ancc in Virginia. the State Corporat}on
CoEamiGsion yesterday uled that il Is
without Jurisdiction to authorize tho
Raising of rates of light, power, gas,
water and other public utility COM
panies when such rates hlv. been
lxed IN franchises grantei tile COM
Dan,es by the cities or towns i'm which
th"y C,rrate.
While the decision Is based upon the
case of the Commonwealth Of Virginia
at the relation Of the city of Clifton
Forge dgainst the Virginia Western
Power Company. it's effect is not only
10 DENY an Increase in rates for light
and power in that city, but also In
foivcs the entering of orders denyiny
similar proposed increases by the sa
company in the city OF Buena Vista and
inc towns or Lexington and Coyinx-
ION ION ~ operates 70 prevent putting
into erect the rate increase proposed
by the Henrico Gas Company. and the
raise in street car tare. i'm Staunton
asked for by the Blue Ridge Lirht n nd
Power Company
The opinion handed down by Char
that wIiie under the Constitution. laws
and SIpreme Court decision Of this
Ssatc. The coipmission cannot raise or
such power should, in the public inter-
est; be given to the commission.
), i, ~ hates t ithe opinion states. "tsat
years ana mat were reasonable when
the ordinances were adopted nave be-
come unreasonable and insufficient. ow-
ing 10 the mounting cost OF labor
material and other operating cXpsnsns.
What the future Will bring 10 III.
utllity companies IN the next few years.
no ~, one can predict and, therefore. it
Is clearly Tor the oest interest of the
State that the commission should have
the power TO regulate the rates and
grant ready relief where the condi-
tions demand it,
RETAINS JURISDICTION OVER
OTHER THAN FRANCHISE RATES
The same reasoning applies IN the
reverse direction according to the
opinion, which proceeds as follows:
Looking at II fiom anoti:rr asD.ct Il
Il c,is" clear that. IL :. fr,ncnis. w,r.
sol" L.iner rate uhi.a would lie
reasonable at the present time it
70 have such rate fixed for thirty
years. If. after the CLOSE of the war.
the price OF labor and materials should
decline. rate, reasonable at this time
might prove disastrous TO the com,
munity under more normal condltions."
Therefore. says the opinion. If the
ought to be. 1t would be disposed 10
ADOPT the policy OF holding the con
sui,u'aonai :nn, II, ana anu stat Statutory provisions
business OF the country and to en-
danger the development of the utilities
put ather as grants of power. subJecf
to the control OF the State in the de-
Nelopmeni OF its police powers" But
me commission finds it necessary to
customs and apparently is strongly in
iiuenced by the action of the Supreme
court In the Richmond and Rappahap-
mock River Railway case, involving TIE
Seven Pines.
1t is quite evident from Chairman
4 IN No
retains full jurisdiction over all ra tes
Or public utilities except those fixed
by contracts with municipalities:
Realizing that city and town gov
erhmcniS are not usually equipped with
experts 10 enable them to pass on ap-
plications for increased rates where
poration Commission. in it's opinion.
tenders to local governments the AS
spectors and rate experts
RHEA DOES NOT AGREE
WITH GARNEI'I"S REASONING
COMMISSIONS Forward concurs In
siomer khea states In footnote that
while he does not agree with all the
reasoning IN the opinion. he concurs
without jurisdiction in the case al par.
In the opinion. the following PROPOSE
tons are stated as the basis of the
l. The power OF the State to regu-
late the rates OF public service cor
power of the State and is a part of
it's sovereignty.
.. The State maX authorize a NUM-
cipal corporation To establish by an
inviolable contract the rates to be
charged by public service corpora
tion. not grossly unreasonable in point
of time. and thus suspend during the
life of the contract the sovereign pow
er of the State to fiX and regulate
rates.
3. Since the contract between the
municipal corporation and II public SER
vice corporation. fixed for term of
years the rates to be charged by a
public service corporation within the
limits of the municipal corporation.
has the effect of distinguishing the SOW
ereign power OF the state within the
territory affected by the contract the
claim of authority must clearly and
Enthusiastically appear, and all doubts
must be resolved in favor of the con-
tinuance of the power.
RAILWAY CASE
PRECEDENT TO BE FOLLOWER
4. The methods by which the State
may authorize a municipal corpora.
tion to enter into an inviolable con.
Dnh1ic