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Ayes-- Brooks, Esl,,ok, White,
<br />Nays-~ Hutchins, Smith~ 2.
<br />
<br />On motion,
<br />
<br />adj our ned~
<br />
<br />AugUst 11, 1922
<br />
<br />CiTY CLE..
<br />
<br />August 15, 1922
<br />
<br />At a special meeting of the City Council A~gust 15th there were present:
<br /> Hessrs-- Vernon B~ooka, R. B. Esleeck, R. A. Hutchins, Jr.,
<br /> J.~ Alden Cast, J. C. Smith, R.E.B. Stewart,
<br /> L, G. White, 7.
<br /> Also the City Manager.
<br />
<br />The following directions were res~i for
<br />
<br /> L. C. Brinson,
<br />City Clerk & Auditor, City.
<br />
<br />the sp~ecial' meeti~:.
<br />
<br /> ,Portsmouth, Va., August 12th, 1922.
<br />
<br />"Dea~ Sir :--
<br />
<br />August
<br />
<br />The "call" having been re~l,
<br />
<br /> You will please call a special meeting o~ the City Council for Tuesdmy,
<br />at 8 o'clock P. M., to consider the reply from the Va. Ry. & Power Co.
<br /> Very r espeotfully,
<br />
<br /> R. A. Hutohins, Jr., P~esident."
<br /> the followl~ reply was read from the Va,.?y.' & ~ower
<br />
<br /> "TO THE~HONCRABLE CITY COUNCIL .OF THE CITY OF PORTSMOUTH,
<br /> Portsmouth, Virginia.
<br /> Gentlemen:-- The Virginia Railway smd Pgwer Compsmy has carefully considered the xesolu-
<br /> tion adopted by you~ Homor~ble .Body on July~ 1'~, j1~22, and agrees ~ith the resolutlom that '~a~_
<br /> efficient amd adequate system of ur. ban tra~sportatiom for p~ssengers is essential to the pro
<br /> gress, expansion and prosperity of a city,' and that 'such a system must of its nature be a
<br /> monopoly so regulated as to promec~ the i~tere~t of the city and its oitizems, while at the
<br /> same time in~u~Ing a just mhd invitimg retu~m o~ the capital invested in.the
<br /> needed for its future expansion.' This is sm e~omomic ~fact which is ackmowledged wery gener-
<br /> ally, and when a practicable method of workimg out the ~$portatiom system in the city
<br /> Portsmouth is based upom these principles, ~he integrity of capital Will be established in
<br /> the community im a wmy that will attract other industries and this aid substantially in the
<br /> development of the community.
<br />
<br /> This company is willing t~ coopera~e ~o the fullest exten~ with the city of Portsmouth
<br /> to provide an efficiemt amd.adequate transportatiom system based on thes~ principles,
<br /> I~ doing thl~ it must be borne in mind that the State Corporation Commission of Virgimia
<br /> has 'u~isdiction of all matters rel~ti~ to the m~king of rmtes a~dlthe character amd quamtity
<br /> of s~v~ce, and this compa~yca~mot enter info'any contract which will ~r~ail this power, and
<br /> in speaking about details hereinafter it will be understood that the compamy is not
<br /> or m~temptimg to agree to take away from the ~tmte Corporation Commission amy Jurisdiction
<br /> ~nioh it has over the company's property.
<br /> The company has Eivem consider~tion to the p~acticability of obtaining finances for making
<br /> the necess~y improwements, a~d has ~eached the conclusion that it will be necessary to rorer
<br /> a corpormtiom to be known as ~he Portsmouth Transit Company, which will acquire all of the
<br /> property of t~e vlrginiaRal~ and Power Company used in Portsmouth for street rmilwaypu~-
<br /> poses~ Of the persomnel of th~lhomrd of directors of th~s mew compmny residents of the ~ ty
<br /> of portsmonthshall always oomstitute a majority, so that there c~n be mo Question about the
<br /> local interests being protected and smfegumrded.
<br /> $~ock in the new c cmpamy will be offered for s~le to the people of Portsmouth and will he
<br /> ~cu~ulative p~eferredstoek. The Vir-gi~taRailway amd Power Co~pamy will ~emd to the new
<br />company its orecLtt in. securing finances amd will also gus~a~tee, both ms to principal
<br />I~imt~est, the ?~ cumulative preferred stock, as it will be essential if the ~development is to
<br /> be made, to secure the necessary funds in the city of Portsmouth~
<br /> The Virginia Railwmy amd Power Company, however, cmnmot undertake this burden of
<br /> ing the~lmteg~itY of the capital invested in the Portsmouth Transit Company if such umcertain
<br /> thereof shall ~em~in in £orce, therefo=e~..modificamlon ox ~ne pavzng requzze~n~ ~
<br />
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