Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-10-31
70 N[N
PROPOSED RATES
Officers Of Marshalltown Light,
Power and Railway Co.
Meet With Council
REDUCTIONS ARE TOO SWEEPING
So Claim the Officials, Who Say That
New Ordinance Would be Prohibitive
to Their Doing Business at Any
Profit - Willing to Reduce Present
Rates, However.

Mates, T1OW0vSIs
A meeting of the committee of the
whole of the city council was held
Monday night, altho it lacked just
half of being an entire committee,
Messrs. Calhoun, McMains, Psenicka,
Mcbride and Arnold being absent. The
meeting was held in order that the
Marshalltown Light, Power and Rail-
way Company might have an oppor-
tunity of presenting its side of the
new rate ordinance before the propos-
ed ordinance is disposed of. President
C. d. Jones and Secretary S. B. How
ey of the company, were present, and
Mr.. Jones presented some figures DEAL
ing with rates in other cities.
Mr.. Jones said that the company
felt that the new ordinance, as pro-
posed, was asking too much in the,
way of reductions. ALI reductions must
come out of the net earnings of the
company, and the company must be
afforded a fair return on its invest
,ment if the council cares to be at all
reasonable and not oppressive. Mr..
Jones claimed that the average rate in
Iowa was not being exceeded in the
present rate of the company. He said
his company could not possibly afford
such a great reduction as the new rate
proposed would create. Mr.. Jones
said that INSTEAD of 20 per cent, 1t
was nearer 49,
President Jones had prepared table
of rates, making comparisons with
rates in effect in other cities with the
present rates in Marshalltown and the
new rates as proposed. The figures
were attacked by different members
of the council, however, and declared
not fair showing. This was because
the sample bills showed dealt largely
with the discounts arising from bills
of large consumers, and not discounts
that were made to the smaller con-
sumers.
Mr.. Webster asked President Jones
what the company would be willing to
do, in order to arrive at the conclusion
whether or not the new rates, as pro-
posed, would give the company fair
return on its investment. Mr.. Jones
had declared that they would not, and
Mr.. Webster said that the question
had narrowed itself down to the one
point-what Is fair return on the in
vestment? Mr.. Webster said that the
only fair and accurate way to arriv,
at this was for the company to permit
committee to investigate it's books,
and see whether or not the ordinance
would give the company a fair com
pensation Mr.. Webster put the ques-
ton squarely, and MI. Jones replied
that he did not consider such pro-
cedure fair business proposition. Mr..
Jones added that under the company's
franchise it was permitted to charge
rates in accordance with those in eff
feet in other cities. Mr.. Webster re-
piled that this was not true and that
If companies in oher towns We're rob-
bling the consumers, the local COM
pany had no charter to do the same.
Mr.. Jones added that his company
could show conclusively that it could
not make any money at the new pro-
posed rates.
With this the meeting was adj
journed, with the result that practi-
cally nothing was accomplished, and
he situation stands as it has since the
agitation began.
Willing to Make Concessions.
The MarshalMown Light Power and
Railway Company, which furnishes for
commercial purposes gas for both fuel
and illuminating purposes, also electric
lights, while objecting to the new rates
as proposed, are willing to make con-
cessions in the rates, and would not
object to an orditnce that would make
the rates somewhat cheaper than at
Mr.. Jones and Mr.. Howey say
that they would be willing, in the mat
ter of lights, ito put into effect what is
known as maximum demand or turn
Ing point plan, instead Of the gradual
ed system, as is now in effect This
plan, according to their statements,
has been found to De the most equit-
able of any, and is such as is in effect
In Des Moines, Cedar Rapids and other
cities.
The power men say that they would
be willing to put IN a 15cent net rate
up to turning point OF 1000 watt
hours per 16-candle power lamp, all in
excess Of that amount to be furnished
At 8 cents per 1000 watt hours. Presi-
lent Jones estimates that this system
would make an average reduction OF
from 13 to Is per cent, and would run
rs high as rs per cent to the larger
consumers. If this plan would not be
Mr.. Jones says that his
would be willing to make
straight discount of 10 per cent net.
In the gas rates President Jones and
Secretary Hovey say that they would
not object to 10 cents off from the pre-
sent rates. AS to general conditions OF
The proposed ordnance, relating to quail
jty and pressure of the gas, they are
anxious and willing to meet, as they
say that 1t is to their advantage to fur
1ish good gas and at a high pressure.
n order that they will get more gas
business.
Secretary Hovey says that the
,rouble with the gas during recent
weeks has been unavoidable. and was
,aused by the presence in the mains OF
1aptlaline, a chemical formation that
s the nightmare of the gas man. The
company has been figuring for the past
eighteen months on building a new
central ten-inch main leading from the
plant as far west as will be necessary.
This will be done either this fall or ear
Y next spring, and Will give the pat
'ons additional service.