September 12, 1922
<br />
<br /> The Compa~y'in its desire to fully co-operate with you in working out the problem at hand
<br /> is willing to modify its answer of August 8th, on the four essential propositions mentioned
<br /> by you, in the following manner:
<br />
<br />- (a) JITNEYS: The C0~pany accepts your propositi~on not to allow other systems of urban
<br />transportation to operat$ in competition with the Company nearer than two blocks from the
<br />~ortion ?f mny street on which the Company operates, or may operate, its s~reet oa:s or t=olli-
<br />bus~ses, (~bject to the exceptions c~tmined in your res61ution~, mnd the operation of the
<br />~two jitney lines, one on Cowry Street, mnd the other on Sou~ Street, ~ith the understanding
<br />that it Jitney ~ines, or other syst~ of urban transportation should upon a reasonable trial,
<br />p~ove to be.really competitive, ~he Council will so re-route or re.late them ~ to make
<br />them non-competitive, the determination of the question whether sucHlines are c~petitive
<br />or not being left to arbitration. In this co~ection the Comply sug~sts thmt the ~wo
<br />jitn~ lines mentioned ~bove ~e operated from May 1st, next, when it is hoped our re routing
<br />pl~ will bec~e effective, for six months, mhd that m record be kept so as to msoertmin
<br />whether they mrs really competitive or supplementS,
<br />
<br /> (b) PA~NG: The Comply ~o rem~n liable for all paving which it is now le~lly liable
<br /> for under e~sting franchises, but not mt ~is time ~o oremte ~ny new obligation for p~ving
<br /> whish i~ not provided for by existing franchises, ~e Comply no~ %o be require~ to pmy mny
<br /> pavi~ ohmrges for one ye~ ~ter ~he completion of improvements ~d in~gurmtion of improved
<br /> service~ ~e Compmny feels ~=e that y~ will mpprecia~e the diffioul~ which co.fonts
<br /> it in mttempting to m~ke ~n mocurmte forecast of the results of Wpermtions, ~nce i~ is im-
<br /> possible to calculate ~efinitely on the mmoun% of the gross receipts, ~d Quite ~ffi~l~
<br /> to es~mmte the opermti~ cos=s, and more especially when there is alsys hmngi-ng over it
<br /> ~certmln paving ob~i~tien i~volving expensive track const~otion, ~ioh may be in any one
<br />~ear a s~ of from $1,0~ to $~00,0~. ~e CO~, therefore, begs to brin~ to ~our mttentiom
<br /> how essential it Is that i~ should have fr~ the city m fixed mhd definite annual ~ount above
<br /> which the Compa~ will not be required to make expenditures for paving, in ~ny one ye~, so
<br /> ~h~t the Company cmn state with ~s ~ch accuray ms possible its fixed li~ilit~em, ~s this
<br /> is essenti~ in o~der that it may make the necessary fin~ci~ arrang~ents to provide an
<br /> ~equm~e ~spqrtation system a~ present, as well as i~the future. Of course if suc~
<br /> mrrmngement should~be made mhd the Comply should still be ~able for ~'paving, the ~roposition
<br /> for ~ division of surplus proposed in the ~mpan~'s ~nswer of Au~st 8th, would be considered
<br /> ~s wi thdrm~.
<br />
<br /> (o) FA~S: The jurIs~=~ion of the State Oorpormtion Oo~ission for the re~l~tion of
<br /> fares is not only conferred upon it by the State Consti~tion, ~t the ~estion hms also been
<br /> ~efini~ely settled b~ the decision of the Oo~ission in the Portsmouth omse, mhd by ~he
<br /> cision of the ~pre~ C~rt of A~s of the State of Virginia, in t~ Ric~ond Telephone
<br /> o~se, ~nd the Company h~s be~n ~dvised by its ~ttorneys that the j~is~ction of the Co~
<br /> mission ig not ~fe~ted by 'the ~estion ms to whether the franchise w~s entered int~ bef~e
<br /> or after the new Constitution of 19~2 went in~o effect. T~s hein~ ~ue, the Company,'. ~
<br /> well ms the Oit~, is bo~d by the law of the l~d, mhd it om~o~ by contract, or otherwise,
<br /> mbrogmte or ohan~ ~hmt lmw, ~d ~y contrao~ whfch it might enter into wi~h the Oity, fixing
<br /> the f~es for mny n~ber of ye~s would not be vmlid. It necessmril~ follows from wha~ has
<br /> be~ said, that the O~pany cannot m~quiesoe in the statem~t of ~e ~rd paragraph ef the
<br /> letter ~ef Gemerml Jervey, of Auger 28th, that a well real.ted monopoly is one which Is
<br /> r~ulmted by the local go~erni~ body.
<br /> The 9~mny h~s not Understood thmt the principle ~nouneed in the Co. oil's resolution
<br /> of July l$~h,~ tha~ mn md~mte system ~f ur~ transportation must of its nat~e be m
<br /> !mted monopoly ~s subject %o such m construction. ~e Company, however, is willing, wlthou~
<br /> in mnT wmy m~t~pting to surrender or imp~r the juris~ction of the Stmte Corpormtion Com-
<br /> mission, t9 ~ee, ~ter ~he re-r~ting ~s completed ~d contemplated service installed,
<br /> say mbout H~y 1st, 1923, that it will stmrt out with m six cent fmre ~d school tlcke~s, ms
<br /> ~t present, ~a that for m y~ from that time it~ will not, apply to the State Corporation
<br /> Co~ission for ~ny chmnge in the f~re, ~d if mt the end O~ the yemr the Co~cil and the
<br /> Company should m~ee 'that economic conditions ~d the ~ainess of the Company w~ran~e~
<br /> m deoremse in the f~e ~o ~ve cents, the Oompmny will itself mpply ~o the Commission to
<br /> mllowe~ ~o charge a five cent fare.
<br />
<br /> In view of the fact that the State Commission is ~ oDen %o any r~es~ of the Cit~ .
<br /> ms it is ~o m request of ~he Comply ~nd that the City will always have the right to re.ire
<br /> that the Comply prove ~o the Commission .that it h~s the right ~o chugs ~y spec%fie
<br /> the Comply c~ot ~ree, without ~alifiomtion, to the proposition that if fares in the
<br /> City of Port.curb mrs in~emsed mt mny time beyond seven sents that the Council mmy ~n
<br /> loose on it ~oh jitney or other competition ms it mi~t choose. The Compmny ~esires if
<br /> it enters upon this ~'d~aking, ~o carry it t~ou~ not only for one ye~, ~t ms
<br /> years ms it m~Y be necess~y~in ~e spirit in which it Is ~tered into, that is, of sincere
<br /> oo-operm~i~n wi~h the City to furnish it mn adequate trmnsportation s~s~em, mlwmys m~ such
<br /> fmres ms ~e justifie~ by existing conditions. ~e Comply is willing to s~y ~d does
<br /> ~hat it will not mt any time mppl~ to the Cofpor~ti,on Oo~ission for ~n in. ease In f~es
<br /> unless ~oh increase is necess~y in or~der that the~ompm~ may furnish ~ mde~te system
<br /> of transportmtion ~o the City ~d mt the s~e time reoeive m fmir re~urn on its investment.
<br />
<br /> To further show, however, i~s Spirit of oo-opermtion, in o~se the f~e is ever mdvmnoed
<br /> beyond seven cents ~ the S~mte Corporation Commission, it ~11 fully ~d thor~ghly ~ls~uss
<br /> the ~estion of other ~d competitive means of trmmsportation with ~e City, givi~ f~l
<br /> ~ccess to its records mhd if the City mhd C~pmny mrs then unable Zo reach m satisfactory
<br /> underst~dl~, the Comply will-be willing to leave the entire question of the intro~ction
<br /> of competitive ~sportmtion to mn ~p~rtial board of ~bitra'tion.
<br />
<br /> (d) SCHEDULES: What has been said above in relation to the ju~isdlctlon of the State
<br />Corporation Commission, applies to the power given the Commission to regulate the service
<br />of public utility companies.~ The Company is, however, willing that the maximum time interval
<br />he~ween oars and trollibusses on the several_routes shall be fixed in the agreement, and to
<br />further a~ee that the service shall alwa~e~b~ such as traffic conditions.requir~e~, ~a~.d that
<br />if the Council mud the. Company c~nnot ~g~ee on what service is necessary ~o'mee~axzic
<br />
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