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unsound and is unfair to the oar rider as well as to the company; It is intended, of course,
<br />that the revenue received from the car riders shall bea~ this expense, and in addition mllo~w a
<br />just and inviting return on the value of the proper~y used to serve the public. This require-
<br />ment was originally by way of indemnity to the city for actual damages done to 'the pavimg in
<br />the horse car franchises and when incorporated in the electric railway framchise is an addition-
<br />al tax burden for the use of the stree~o The imposition of this burden tends to make the cost
<br />~ street railway tra~uspor~tation excessive and is a serious o~stacle to financing the c~pany
<br />for the reason that it is an indefinite obligation which deters the investor from putting his
<br />money in st~vee-t railways, aud..tends to make the rate of interest required much higher thau it
<br />would otherwise be. The principal wea~ upon the pavement of the streets occupied by the com-
<br />pany comes from the use of other vehicles amd the oar rider ought not to be penalized because
<br />other vehicles wear the pavement aw~y; ~ this custom of re~u~ring the transpiration
<br />system to pave, was inaugurated, the horses smd mules ~rdr~ened the pavement in a way that the
<br />street ca~'s do not now, and it was in order to make the company pay for the damage that it
<br />occasioned to the pavement that l~is provision was originally required. Now it is a tax on the
<br />ca~ rider Who, in riding the ca.r, m~ke the most economical use ~:f.~ the highway, and the company
<br />is compelled to collect for something that benefits the other PAr% of the.!~blic than itself.
<br />All that the company or the c~ rider ought to be. called upon to 'pay is Sbt ~he expense actual-
<br />ly incurred because of the occupa~uoy of the street by the rails.
<br />
<br /> I.n/order ~o:~enmble the company to finance the improvements for the City of P6~tsmouth.
<br />presen~and prospective, and to put the obligation of the company and the car rider as to
<br />paving Upon a sound basis the company requests that existing franchises be amended so tha.t
<br />the obli~atlon of the company with reference to streets and pavement be stated as follows.
<br />
<br /> 'PAVING ~ND REPAIRING. The company shall pay the city the cost of repaying and making
<br />~ood all Such faults or breaks in pavements ~etween and ~wo feet outside of the tracks,
<br /> or which the presence, operation or maintenance of its tracks is responsible, and in the
<br />case of original track construction pay to the city the excess cost of all paving or repaying
<br />necessarily incident to said track construction.'
<br />
<br /> ~n order to avoid the frequent misunderstandings which have occurred in the past, it
<br />will be noted that the city will assume the responsibility of doing the work, instead of.
<br />having a divided responsibility, and the comply will promptly reimburse the city for any
<br />expense ino~Arred under ~the provision just named.
<br />
<br /> The State Corporation h~avSn~ fixe~ the ~alue of property of Portsmouth Street Railway
<br />as o~ October 31, 19~1, at $1,A~f ,000, and the Norfolk and Portsmouth Traction Company ~
<br />bonds allotted to this company bein~ $1,000,000, ~he Portsmouth Transit Company will ms-sums
<br />t~me obligation of PmYlng the interest and sinking fund on these bonds, smd will issue ou~a-
<br />ulative preferred stock fromm, time to time in sufficient amoumts to provide the funds neces-
<br />sary for the rerouting and future capital expenditures, the Virginia Railway and Power Com-
<br />pany will exchange all of %ts p~operty and rights in the Portsmouth Street Railway with the
<br />Portsmouth Transit Compamy for $~,000 of the common stock Of the Portsmouth Transit Company.
<br />
<br /> By way of compensation to the City for the amended obligation ~l~n reference.to paving,
<br />the company will agree with the city, after the payment of operating expenses, (including
<br />property taxes, proper reserves flor inJttry and damages, depreciation and renewal reserves),
<br />interest and sinking fund on bonds, guaranteed dividend on preferred stock smd ~6% on the
<br />cSmmon stock, to divide equally between the City and the company the remaining surplus im
<br />lieu of all other taxes and paving obligations, other than the cost of repairing defects
<br />in pavement adjacen~ to the tracks occasioned by the presence, operation or,maintenance of
<br />the said tracks, and the excess cost of paving or repaying necessarily i~cident to track
<br />construoti on.
<br />
<br /> On page 6, pass,graph 2 (g) r~fers to school fa~es, As s&id above, the company' can not
<br />make any agreement which will curtail the power of the State 'Corporation Commission but the
<br />Company will a~ree that it will not request the State Corporation Commission to increase the
<br />school fasces.
<br />
<br /> On, pase 6, paragraph2 (h),: the Council proposes that the ~ c~nt fa~e continueuntil
<br />the worx ox construction and reconstruction is completed and that a 5 cent fame be put into
<br />operation and continue £or m period of one year.
<br />
<br />C .... _A?~h~.'~b~een. sa.lc~.~eze, th~. com~p~ny is unwill~ing to ottrtail the authority of the State
<br /> ~-p~z~a~n ~OmmlSSXon, nor c~ ~ne ~p~y undertake to ~t into efffect m 5 cent
<br />~y p~ti~ time. It is well known th~z the State Co=permtiom Co~is~ion has
<br />~thorized the comp~n~ tO charge ~ fmrs off seven 'cents in Porte,th .~t, mt the reques~
<br />off ~e C~p~y, the S~te ~CorDo~miion Commission consented ~h~t this ~te be not put into
<br />$~fec~_ Th~.Comp~y wil~ ~ee ~tto =e~t a fare of o~r.6 cents for the Period of
<br />~ mon~ns ax~e~ the c~pAe~ion ot' the wor~ OT construction aha ~econstructlon and he, es
<br />that the =e~lta of ope~atiom ~i~ s~id 12- months Neriod will m~ow thmt m 5 cent
<br />will be adequate thereafter, ~t on mcco~t ef the 1~ expe~tu=e read=ed on
<br />of' the: cos~ of c~structio~, reconstruction and :operations off the tm~ge ~ount of
<br />sea,ice that will ~e p~ovided under this plan, the ~omp~y could not now u~de~t~e to desig-
<br />nm~e a p~=ti~lm: ~ime mt which it will :e~es~ ~thority f~om the Stmte Co=~r~tion Oo~ls-
<br />sion to pu~ i~to effect the 5~ o~t ~. Of co, se, it ts ~ways within ~the powe~ of
<br />Cit~ a~ m~ time ~ re~es~ the State Corpo~tio~ OoEissiom to re,ire m re~ction i~ fm~e.
<br />
<br />the W? .w~uld r?mind?gu that the fa~e:charged on the ca~s in Portsmouth is now much lower
<br />~ n_zn? ~are 9~argea. xn man[ oth~r_oommunities, tn April of this year'.She ~ver~ge fare of
<br />~ eAec~rlc raz~Aways zn the unltea ~tates, as tabulated in Acre, was ~.3~ cents.
<br />
<br /> On page 6 it is suggested that paragraph 2~ (i) be modified to read as follows-: "~ee
<br /> transfers will be issued in one direction from c~ to c~r, trolley bus to trolley bus, t~o~ley
<br /> bus to ca~, and car to troiley bus, at regularly established transfer points, Nhere lines
<br />'intersect, such points to be approved by the City Council.'
<br />
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