Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-10-31
Local Comment
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The refusal OF the Marshalltown
Light, Power and Railway conpanysto
accept the mayors compromise alfer
of an expert appraisal of It's plant
and rate ordinance which would earn
for It ter per cent on its investment,
means one Of two things to a business
man, the company is earning either
more than 10 per cent ON its invest
ment or it is earning dividends or more
than has been invested. Tn either case
the public is entitled to vastly better
service and cheaper rates on both Gas
and electric lights.
The mayors offer. in fact. was two
genevous. street car. electric light
and gas franchise in Marshalltown. In
effect is an exclusive privilege to tax
the people OF this city. 1t is not pri-
waite factory enterprise subject to COM
petition Of other factories or the
changing demand of the pub1ic.s 1t lis
relieved of most of the ordinary BUSH
ness hazards and its stock would sell
at par on any market If It's net divi-
tlends. after maintenance of plant had
been paid were less than 10 per cent.
The nearest thing that approaches it
is a city or school district bond and
that will sell at and 5 per cent. Bank
stock will sell at par when earning 8
per cent and is far more hazardous an
investment than a public utility. The
right to tax a people Of a good city is
almost a sure thing.
4
The special council committee should
demand that the property of this COM
rany be appraised in order that rates
will not be established to pay divi-
dends on anything more than the ac-
tual value. If the present owners think
they can sell for more than actual val
ne that is their business, but the pub
lie should never be taxed to maintain
any fictitious value. Having ascertained
by an examination of the company's
books what q fair and reasonable earn
ing upon the actual value of their in
vestment would be, rate could be
established which would earn the re-
uuired amount The committee should
insist upon seeing the books of the
company, for this would be the first
thing that any lawyer would do if he
were to defend a rate ordinance in
court. The whole case would hinge
upon actual value and earnings and an
order of court would bring the books.
This is a simple business question of
equity altllo it may have points Of
similarity to the art of persuading
Johnson's mule
The voters OF the city precincts next
Tuesday must vote yes or no on the
granting of a franchise to new tel
ephone company. The present local
exchange has consolidated with the
Bell lines, which has been sufficient to
induce capitalists owning Independent
lines in Iowa. to build a competing eX-
change in Marsllalltown. The new
company's franchise has passed the
city council WIFI its approval and has
been signed by the mayor giving his
approval. The company is under con-
tract with the mayor to spend min
imum of $4,000 in construction next
year. 1t also announces to the pub
lie that it has contracted to buy auto
matte phones, which is the latest i'm
provement in telephone equipment.
This company also offers the farm
ers' lines free rent for their own CEN
trail exchange and free connection with
city phones. These things are all de-
sirable public improvements The OBJ
lection made is that many patrons Will
have to pay for two telephones, which
is answered by the new company by
the reply that with no composition
patrons will eventually pay a high
price for one phone and set an indif-
ferent service, while this new ordins
ance fixes low price and business
competition will compel an up- to-date.
improved service. Be these things as
they may, the voter will never know
for sure which contention is right. The
thing he is asked to decide at the polls