|
R. C. P.
<br />
<br />AUgUst 23, 1~i
<br />
<br />relieved of
<br />
<br /> the heavy dust situation existing in Green street, between High and North streets.
<br /> On motion, the petition was re~erred to the City Manager.
<br />
<br /> -A bill of The J. F. M. Dorman Co. to amount of $15.~, for tags purchased for the Commission-
<br />of the R~venue, was referred to the Finance Committee.
<br />
<br /> A communication was read from the Clerk of Norfolk County advising that a~ the meeting
<br />of the Supervisors of Norfolk County held on the ~th of August, Mr. John E. Rmpelye was
<br />pointed a_Committee to m$et with a like Committee of the cities of Norfolk a~d Portsmouth, in
<br />the matter of Harbor Commissioner and Harbor Masters.
<br /> On motion, the communication was ordered to be filed.
<br />
<br /> The following com, muz~cations Were read from the Retail Merchants' Association of this
<br />City and from the President of the Virginia Railway & Power Co. with regard to.proposed in-
<br />crease in rates for:ele0trio light and power current in the City off Portsmouth.
<br />
<br /> "The Honorable, The Council, Portsmouth, Va.
<br />
<br /> "Gentlemen:-
<br /> This organization has taken steps to protect the business
<br />matter of the petition of the Virginia Railway and Power
<br />Corporation Con, lesion of its application for increase
<br />and power curr~nt.
<br />
<br />"Portsmouth, Va., Au6. l~th~ 1921.
<br />
<br /> communtt~ in the
<br /> Company for a rehearing by the State
<br />of certain rates for electric lighting
<br />
<br /> "Believing that the interes~ of the municipal government, which is itself a ls~rge consumer
<br />of such current, is identical with that of the public, we respectfully petition your honorab!s
<br />body for such action as will mid in protecting the interests of all parties.
<br />
<br /> "The municipalities of Suffolk, Norfolk, Petersburg and Richmond are also mffected and it
<br />is suggested tha~ concerted action may be taken by all of these.
<br />
<br /> "In any event, we feel that Portsmouth should combat this petition ~y ali legal means.
<br />
<br />"Respectfully,
<br />
<br />RETAIL ~RCHANTS' ASBOCIATION,
<br /> Jesse M. Overton, President."
<br />
<br /> ~Hon. R. A. Hutohins,
<br /> Mayor of the City of Portsmouth,
<br /> Portsmouth, Virginia.
<br />
<br /> "Dear Sir:
<br /> We think it proper to inform you in
<br />tion confronting this company.
<br />
<br />"Richmond, Virginia, August 19, 1921.
<br />
<br />the public interest of the critical si tua-
<br />
<br /> The operations of ~he railways have been continuously unprofitable. Indeed, for the year
<br />to July l, 1~21, the entire railway system did not earn the interest on the bonds mllotted ~o
<br />the several railway divisions by $581,557. ~n other words, the revenue derived from operation
<br />of railways, after payment of operating expenses and taxes, was $581,557 less than the interest
<br />on the bonds of the railways.
<br />
<br />C The Light and Power ~ys~em, the rate base smd charges on which are fixed by the State
<br />orporation Commission aha limited to a reasonable return on its value as a separate enter-
<br />prise, earned sufficient surplus over bond interest on the Light and Power properties ~o enable
<br />the company to pay the railway deficit on its ~onds, otherwise a receivership could not have
<br />been avoided. The result of this is that the large investment in all of the properties- rail-
<br />way and light and power system- by the stockholders has been denied ~ny return for several
<br />years in order ~o save the situation.
<br />
<br /> Under these circumstances it is obvious that it is impossible for the company zo make
<br />the necessary investment in the Light aud Power system to properly safeguard its service, it
<br />being quite urgent &~ this time to provide more than a half a million dolls~rs ($500,000) ~o
<br />insure continuity of service~ and provi~te for the normal increase in the domestic and commercial
<br />field.
<br />
<br /> If the street railways, now controlled by the municipal Councils, were in a position ZO
<br />take care of themselves, or at lemst the fixed charges on the investment in railways now serving
<br />the public, the surplus earnings over fixed charges in the Light and Power system could be made
<br />available for safeguarding and improving the light and power service, whereas unde~ present
<br />conditions the whole system, ~oth Ligh~ an~ Power and Railways~ is in jeopardy by reason of the
<br />continued delays of Councils ~o properzy r~cognize the railway investment and to proviae rates
<br />and charges by fares, mud protection from unfair jitney competition, and to relieve the rail-
<br />way system of burdensome paving obligations, etc., all vitally necessary for the re-estabtishmenl
<br />of the company's credit.
<br />
<br /> We, of course, intend doing all that we can do, with the facilities available, to insure
<br />~Oo~tinuous service, but the gravity of the siltation is such that we are unwilling to assume
<br /> for failure to provide adequate ~rotection for our Light and Power service
<br /> ~t advising you, and through you, the public of the critical sltuationlthat exists. Our
<br /> records are, o~ course, Open as always for thorough investigation by the proper authorities.
<br />
<br />"Respectfully yours,
<br />
<br />c~_~ ~ ..... "Thcs. S. Wheelwright, President.
<br />
<br />
<br />
|