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and Power Company~ and its predecessors, and ~he following terms and conditions shall be appli-
<br />cable to the franchise heretofore granted to Virginia Railway and Power Company and its pre-
<br />decessors, any terms, conditions, limitations, restrictions or provisions in any or all of
<br />said f=mno~ses ~e~ ~which the Virgins Railway and Powe~ Co, any now op~mtes to the con-
<br />tr~y nevertheless ~d motwl~hs~ng. ~y amd ~1 of the terms, conditions, l~itatio~,
<br />=es~lc~ions m~d Dro~sim~ conmai~d in ~y mhd all f~chises heretofore ~ted to the
<br />vir~ni~ R~lw~y mhd Power Oo~any and ~y mhd ~ll of its p~edecesso~s which are in any
<br />wise in co~liot with the te~ms, co~ions, l~itmtions, restricti~ mhd pro~sio~ he~e-
<br />i~fte~ en~era~edare he=shy expressly ~ended, mo~fied, ch~ged and mb=o~ted to the
<br />of s~ch conflict, mhd ~he terms, con~tions, l~itmtio~, restrictlo~r~nd pro~sio~ of this
<br />or~ce sh~l govern m~ apply to operatio~ unde~ all pti,or franchises, hut where ~11
<br />te~s of ~d prior fracases mrs not so so,fled, the.z~e~hall r~n in force and efffect
<br />
<br />been ~ar to the G~an .......... ~ Y ~ ~llgations w~ch it would ~ve
<br /> mcr xx ~nxs zr~xse naa not been ~ted, exert so f~ as said ob-
<br />!lgatlo~ ~e altered or ~en~d by the followi~ provisio~ h~e~ contained. But the City
<br />of Portsmouth e~ressiy a~ees t~t it will ~t ~d of Vi=gila Railway a~ Power Oo~y
<br />the performance of any duty until it ~s existed its removes against the grantee, and ~11
<br />not then de~ ~ the Vir~ Railway ~d Power 0o~any the performance of any ~ty o~tted
<br />by ~tee, if the ~thorities of theCity of Port~outh sh~l ~ve violated any covert
<br />a~eement respecting the~ p*o~ection of grantee from u~air competition o= any other cove~n~
<br />and a~eement ~de herein fo= the ~rotection of grates..
<br />
<br />H~. Frank L. Crocker,
<br />Portsmouth, Virginia.
<br />
<br />Dear Mm. Crocker:-
<br />
<br /> We have carefully considered the proposition of the Council of the
<br /> City of Portsmouth providing for the retention of the obligations of the Virginia Railway and
<br /> Power Company in existing frmnchises, notwithstanding the proposed g~ant to the Portsmouth
<br /> Transit Company.
<br />
<br /> We have also carefully considered the fedmart made by you providing
<br /> that the Virginia Rmilw~y and Power Co~pany may not be called upon if the City of Portsmouth
<br /> shall have violated any of its covenants or agreements with the Portsmouth Transit Company.
<br />
<br /> Without considering the legality of such a provision, we have reached
<br />the conclusion that for the City of Portsmouth, under any condition to look to the Virginia
<br />Railway and Power Company to enforce obligations of the purely local and proposed Portsmouth
<br />Transit Company would be subversive of the main purpose which ~a~been in mind for the sepa-
<br />ration of the Portsmouth Tr~nsportation property 'and its development as a distinct unit~ The
<br />City of Portsmouth, it seems to us, shov~ld realize that no public service will survive, or is
<br />entitled to survi~, unless it cmn support itself unde~ proper regulation and efficient manmge-
<br />merit. The directors or-this company a~e willing to furnish the necessary capitsl for the
<br />Portsmouth Transit Company, in the hope ~Z putting the new company in a position to furnish
<br />an Adequate and efficient service, unde~reason~ble regulations, This oompmny~shows its good
<br />faith and oonfidenoe~Mn-the proposition by providing the necessary credit and capital to
<br />the extent of $~55,000, an~ it seems to us that after this showingof good faith on the pa~t
<br />of this comps~ny, if the City of Portsmouth' is not willi~g to reply upon the Portsmouth Transit
<br />Company, operating as a separate unit to meet the requirements of the City in the mmtter of
<br />transportation, there is little to encourmge this company in going ahead. If the City of
<br />Portsmouth, am it may hereafter be controlled under the proposed amendment should fall to
<br />lend that co-operation which is necessary to the maintenance and development of a successful
<br />t~ansportation system for the City, this Company,would be called upon under the pla~proposed
<br />by the Oounoll, irrespective of the cost and burden, to meet the eitu~tion. The need or in-
<br />centive of co-operation by the mrnioipaX body with the local transit company would be entirely
<br />removed, for irrespective of the results from operation of the local company, the City Council
<br />wpuld have the right to call upon the Virginia Railway ami Power Company to make good the
<br />fmilures of the local company. If the local company prospers there will be no difficulty
<br />in e~forolng all ~f its franchise obligations.
<br />
<br /> Briefly in conclusion ou~ policy provides for the organization of a new
<br />company under a new franchise and with sufficient capital to secure for the City of Portsmouth
<br />efficient transportation. We believe that co-operation between the City and the Comps. ny will
<br />result in mutua~ advantage to the City and the Company. This Company is showing its good
<br />faith, as above stated, with cash and credit. I~, under efficient management and reasonable
<br />regulations, which will come from co-operation, transportation in the City of Portsmouth cannot
<br />be provided for, it must be recognized that the community will not have cheap transportation.
<br />Certainly, if it cannot support it, it ca~uot expect to have it. The City of Portsmouth should
<br />not look to outside contribution for the maintenmnoe of its public service any more th~n it
<br />should look to outside cont~ibution of money or aid in the ma~lntenance of'its streets, it~
<br />water supply, its sewerage, or any other public service, whether supplied by the City as a
<br />governmental agency or by private capital.
<br />
<br /> In conclusion, we could not recommend a divergence from'the policy
<br />approved by the board, and we do not feel ~hat irrespective of our recommendmtion the board
<br />will be willing to recede from its position.
<br />
<br />Yours v~y truly~
<br />
<br />E. R~ndo~williams~,
<br />
<br /> Vice President ~ndGeneral Counsel."
<br />Mr. ~ite moved that the bid of the Portsmouth Transit Company on the traction franchise
<br />
<br />
<br />
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