Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-12-17
DENIES DAVIS PLEA FOR
RATES TO STATE
Corporation Commission Holds
Treasury Will Gain Through
- +. New Freight Charges.
100000 MORE IN ExcnEQuEn
Commerce Counsel Mnnghum De-
clarcs Preferential Schedules for
~ Institutions and Departments of
Commonwealth Unconstitutional.

On both legal and equitable grounds
the state Corporation Commission yes
terday denied the motion of Govern.
or. Davis that freight rates to Stat,
Institutions and departments be re-
turned to the level existing before
! the recent general advance. The Gov
ernor based his request on the fac,
thgt the General Assembly. in making
its appropriations at the las, session
did not take possible freight increases
into consideration, and that the bud
get will he exceeded accordingly.
In an opinion By the commission
as a whole. IL is set forth that be-
cause, OF the rate increase the state
treasury Will gain 100000 in in
creased franchiS. taxes on the rail
roads on their gross receipts dur
Ing the period between the effective
ton OF the present budget period on
'Eebruary rs. l9c2. of this sum. ten
eighteenths will be actually paid in,
and the remainder Will have accrued
The commission further points out
that the state is the only shipper
lbenefttsng in dollars and cents from
the freight increase. and il VIII hem
the extra freight charges accruinr
intrastate will cost it. The opinion
regrets that the budget will no, hal
';,nce,l but shows that Virginia profits
greatly in her treasury by the rate
advance.
7, I, Holds 1t Unconstitutional.
lin. addition. the commission presents
an opinion by its commerce counsel.
upon Virginia decisions. IL the state
were given n preferential rate. just
because she is state. IL would be
Unconstitutional because II would be
n N N w. len al.
without just compensation.
Further. the state Corporation Com
mission, In its opinion. outlines the
recent rate increase proceedings. AZ
ter showing that the Interstate Com
mercc Commission authorized certain
increases largely because the United
States government had been losing
millions Of dollars per day. on it's
being paid by all the citizens out
of the national treasury. ana With
the return to private control some
body had 10 pay this loss. the State
things. One was to follow the CON
illusions reached by the Interstate
Commerce Commission after invcs,i-
cation. The other was 10 value Tn.
property of all railroads In Virginia.
take evidence as to the operating en-
penses and revenues OF every line.
INQUIRE into competitive conditions
and long and short-haul violations.
and upon a finding to fix intrastatc
rates without regard to those pre-
vailing Interstate.
Would Take Several Years
THIS would have taken all the time
or the State commission for two or
three years. To have refused to grant
me same increases Inside the state
that had been given by the Interstate
commerce Commission would have re-
suited in discrimination in favor Of
those having purely interstate husi-
ness and against those VirGinians
VINO have occasion to travel or ship
between States
The commission also points out that
AZ ,ts public hearing there was no
opposition whatever TO the general
rate advance, and that on :he con-
trary II was urged by most virginia
.hnnners OF commerce and many
Shippers to grant the increases