Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-21
BYRD ASKS RATES
CURB ON UTILITIES
Emergency Legislation Is
Sought by Virginia Governor
in New Message.


RICHMOND, Va. March 2t.-Public
utility companies should not be al
lowed to increase their rates until the
courts so permit, Gov. Harry F. Byrd
today told the Virginia General AS
sembly in recommending amendments
of the law empowering utilities to
charge rates unauthorized by either
court or State corporation commission
pending a final decision Of their va
ldity.
Appointment OF commission of Vir-
ginians to make a survey of the sea
food industry looking to re-establish-
ment of the oyster as a great natural
resource of the State also was recon-
mended by Gov. Byrd. sweeping
survey by a disinterested agency pre-
liminary to an investigation by COM
mission OF citizens. and the adoption
Of law changing the period for alloca-
ton of road funds, were advocated in
the executives message.
Declaring that Virginia. should short
~ become second OF the States in
apple production. the governor recon-
mended passage of a law vesting In the
Department of Agriculture the right
70 establish apple grades so that Vir-
ginia apples shall be accurately
branded, and thet the contents Of each
closed package shall conform to the
grade indicated on the label.
Gasoline Refund Frauds.
The State is being defrauded in
many gasoline refunds. the message
pointed out, declaring that some other
method of more efficient audit and
supervision must be provided.
The message reported receipt of
resolution from the State Farmers
Union and the farm bureau Of Rock
ingham County requesting action TO
bring about A reduction in railroad
freight rates. II is not the province
OF either the governor or the general
Assembly to interfere with the State
corporation commission in its rate
making functions, said the executive,
who recalled that the commission has
already summoned the railroads to
hearing of their interstate rates. The
interstate commerce commission has
charge of interstate rates, so that the
State has no control over the railroad
rates that are most important and
most vital TO the shipper" Mr.. Byrd
pointed out.
In my message which I read to
YOU on the opening day of this SEES
sion" the Governor said, II con
centrated attention upon the principal
work that called you here: the reor-
sanitation OF the State government
o promote efficiency and economy. and
the amer dment Of the Constitution
both to make this orga MIA ton pos
sihle and to adjust the organic laws
10 the !. eeds OF today.
The unusual importance of these
matters alone justified this extra ses.
sion. and will demand, / am sure. your
time and thought TO the Exclusion of
much other less important legislation.
Realizing that your attention will be
fully occupied in considering the main
purposes for which this assembly was
convened. | am yet compelled by the
emergency character Of other public
matters to ask leave today TO submit
10 you a supplementary message.
Would Amend Utilities Act.
Il respectfully recommend the
amendment OF an act to amend and
fe-enact Section. ] Of an act entitled
an act imposing public duties on heat.
light. power, water and telephone com.
panies, and providing for the control
and regulation OF such compa MES bv
the state Corporation Commission, ap.
proved March %. 1914. as amended bv
an act approved March %, 1918, as
amended by an act approved March
20, 1924, as amended by an act an.
proved March 90. 1925.
This law empowers certain public
utility companies to charge rates un.
authorized by either court or cor.
poration commission pending a final
decision of their validity The com
pany may even set aside the rates
nxed as reasonable by the corpora ton
commission after decision has been
rendered and place into effect rates
fixed by itself until the higher courts
finally decide what the rates shall
be. II is true the company under
takes 10 refund any excess collected
above the rate finally fixed. and Gives
A bond 10 support the underi aking.
hut the collection of the higher rates
rejected by the State CORPORATION
Commission during the period The con
troversy may linger in the courts liz
unfair to the public arJ weakens the
confidence in the machinery We have
established to hold the balance true
between the utility companies and
the public.
I'm effect the law permits the
utility companies 10 make a forced
loan from its customers without pro
vision for the payment OF interest
even though the excess charged Is
finally rejected by the court OF last
resort. A good rule should work both
ways. Under the present law If the
people complain that existing rates
are too high IL would be unfair TO the
utility company to reduce those rates
until determined by the courts. Like
wise. IL the utility company asks
higher rates than those prevailing. #
is unfair 10 the consumer to force
him 70 pay the higher rates until the
rnflY~f rom m aston cOrpnatpnt
Jurisdiction SO determines"