Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-07-27
A Questionable Procedure

| EANlNG ont of the discussion any legal
l. rights ii might be able to establish in
the courts, ii is doubted gravely If Rich
mond would he doing a wise thing should
it appeal from the decision of the State
Corporation Commission permitting an in
crease OF rates TO the Chesapeake and Po-
tomac Telephone Company. The courts
already have ruled that the commission has
jurisdiction in such franchise matters. al
though from that decision an appeal on the
part OF Richmond is now pending. a fresh
appeal from the latest ruling OF the COM
mission might result of course in delay
ing the inauguration of the new rates or
even i'll defeating them, but the question
arises: Would it pay? Should Richmond
stand on legal bubble TO defeat an award
that is generally admitted TO be just?
The case OF the telephone company. in
the character OF its service and in its nnan-
cial difficulties, is largely parallel with that
OF the street car company, which has been
forced almost 10 tho doors Of bankruptcy
by more than Il year of inaction OH the part
OF the city in granting it an increased fare.
The telephone company has not been inn
mune from the astounding increases in costs
that have forced other businesses to a re-
adjusted basis of operation. New construc-
ton, maintenance. wages every item that
enters into its rendering Of an cXacting pub
lie service, have increased anywhere from
90 10 500 per cent. In the face of these
undcniable conditions. ii is worse than folly
to expect public utility corporation to con-
tinuc business on basis OF revenue in
fcXibly fixed before the war began and costs
started on their long upward flight. AS
Commissioner Forward points out in his cX-
haustye and masterful report, concurred in
by all the commissioners, the company gave
a less-than-cost service 10 Richmond before
the governments wartime rates were i'm
posed and even had there been no war an
increase OF the local rates would have be-
come mandatory. He also remarks peril
nently that hard and fast rate fixed in n
local franchise ten years ago will bankrupt
any utility today" and similarly, Il hard
and fast rate fixed today will prove an in
tOierablc burden 10 the citizens ten years
from now. Hence the need Of flexible
rate under the control OF il central regula-
tive body
Should Richmond appeal and win its case
in the courts it still would have TO make its
choice between raising the telephone rates
and submitting to n progressively impaired
and inadequate service. For the facts will
not down Increases granted by the COM
mission are eminently reasonable There is
no complaint that score. Rchmonds
only possible complaint is that one of its
rights has been invaded, and
the courts already have ruled that it has
not Would il not be better, then, TO &C
cept tine decision gracefully, permit the in
creascs TO become effective without Il con-
test and assure the city OF Il permanently
improved service by financially contentcd
utility corporation, than TO stand on legal
teChnicalty and for the sake of municipal
right that is questionable contribute fur
Their To n delay that is aggravating. unrea-
sonable and costly?