Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-08-16
'U'' |. ! COMPANY FIGHT
Petition Filed In the Suit to Pre-.
vent Enforcement ofEthe New
Rate Ordinance.
Claims the Ordinance u Illegal and
in Conflict With the Constitu.
tion and State Laws.
City Council and Mayor Named as
Defendants and a Temporary
Injunction Asked.


Injunction Asked.
The Marshalltown Light, Power and
Railway Company and the bondholders
are evidently in earnest in their fight
against the enforcement Of the ordi-
nance reducing electric lighting rates,
and the suit referred to- some time ago
In these columns as In contemplation
has been commenced in the United
States circuit court at Des Moines.
The ordinance, which was, passed sew
eral months ago by the city council, is
attacked on the grounds that IL is in
conflict with the federal constitution.
that it was passed by less than a ma
jority vote of the council and that un-
der the rates the business Is made un-
remunerative.
The city of Marshalltown, Mayor p
g. Pierce and the city council are made
defendants to the action. 1t is alleged
by the complainant that the said mayor
and council have illegally attempted TO
pass an ordinance lowering the price
of electric light to such an extent as to
make it impossible to manufacture it,
and supply the consumers at any profit
whatever.
According to the original contract.
which the attorneys of the company
declare is still in force, they We're al-5
lowed to charge cents per watt hour
to all consumers who used less than
$4,000 watt hours per month. The pres
ent ordinance cuts this almost In two
and reduces other charges, such as the
minimum rate, which was before 80
cents per month, and Is now reduced TO
10 cents. The company declares that it
is impossible to operate the plant and
make any profit whatsoever at these
latter rates. The annual expenses of
operation are sl3,s44 and at this rate
the receipts would only be sl4,l5D,
which would only leave an annual
profit of s27l. This would practically
make the stock Worthless, as no divi-
dends could be paid. declares the petit
tioners.
The attorneys for the plaintiffs hold
that the. ordinance is Illegal for two
reasons. First, it is in violation of the
Fourteenth amendment to the United
no one shall be deprived of his prop
erty without due process of law and
due compensation for same; ltsiis also
declared to- be contrary to the state law
which says that no ordinance shall be
passed without the vote of a majority
of the members of the whole council. In
this case the ordinance Is claimed to
have been passed when only a part i
the members We're present and not all
of them voted for 1t.
The company complains further that
since June IA, the date of its passage,
they have been unable to collect the
regular rate from the consumers, as
certain members of the council urged
them not to pay the old rate, as they.
declared it to be Illegal. The fear is
also expressed that unless this act is
declared illegal other measures Of a
similar snature will be passed which
will make their other property value
Hess This consists Of the gas plant and
street car line, which. together with the
electric light plant, are said to be
worth 100000
The complainants ask that tempo
rary injunction be granted preventing
the enforcement of the ordinance until
the final hearing. They also ask that
the mayor of Marshailtown and the
members of the council be sIbpoenaed
to appear before the court at the date
set for the trial. The case is to come
mp September 8 at Des Moines Mar
shalltown and Independence attorneys
have; been retained by the electric
company to push their case.
So far neither the mayor nor the city
council has been served with notice
of THE suit bur express themselves as
ready to make a hard legal battle in
their contention that the ordinance is
valid.
Since the ordinance was passed the
electric company has made no reduce
ton in its rates and is charging the
same as heretofore. The company
claims there is Little dissatisfaction
with their charges and tosback this as
sertion claim that during the. past
month, out Of all their patrons but
three objections We're registered re-
garding the bills rendered. One of the
Marshalltown attorneys for the COM
pany declares there is not the least
doubt but that his clients will win ont
In the present suit and that the ordl-
nance will be declared invalid.