Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-09-22
I,1terurba11 Prospects

| they did not refuse us all hopes Of an
interurban and come here In a rush to
grab a franchise renewal before a real
interurban enterprise can get squared
around to meet demand for bonded
guarantee. Most towns invite interur-
ban ventures and vote them taxes
without asking bonded guarantees.
Marshalltown used to do it but now we
ask them to put up s150,O00 to forfeit
in case some opponent enjoins them
from building within one years time.
We are to rush out and greet Jones &
Hovey just because they offer to extend
their street cars to the city park and
to the fair grounds in two years and a
half to run only in the summer time
and we are asked to give them higher
rates on gas than they offered to ac-
cept last winter without a franchise
and higher than the law would give
us If our city council would only stick
to its own ordinances. This is the way
we are trying to build am interurban
for Marshalltown.
Fake in the Rates.
In defense Of their rates the Pratt
Darling group seeking a new franchise
presumably for Jones & Hovey argue
that while they offer much higher
rates on gas than the Mcbride group
for the first five years they offer a 2
per cent gross earnings tax for the
last twenty years. They figure the
difference in gas rates only on the
present send out when Mr.. Pratt told
us that with the improvement of the
gas works now going on the send out
would double the first year. They ac-
Inn ;,,f
rates on present send-out The T.-R
has figured it $4,000 on the send out
which Pratt himself said would occur.
Gross Earnings Tax.
The trouble with the gross income
tax being used as an offset is that
while it may amount to $4,000 or more
in the last twenty years of the fran
chise it is a tax on the people who pay
gas and light rates. 1t comes out Of
their pockets and goes into $25,000 dam
contracts, $4,000 standpipes, sewage
disposal plants and the like when the
law contemplates an equitable tax levy
upon everybody for the expense of gov
eminent. To increase our taxation by
indirection is no saving to gas con-
sumers. In justice and equity if a gas
company can stand 2 per cent tax
after the fifth year its gas rates ought
to be cut per cent and the 5000
saved consumers instead of given over
to the kind of city council expenditures
which we have been experiencing Of
late.
Electric Rates.
1t Is true that the att-Darling-
Jones & Hovey rates on electric lights
and power are lower to the very large
consumers than the Mcbride rates and
both are lower than the present rates
but nobody gets any benefit until his
electric light bills run above s26 per
annum and then when his electric
light bill has reached $50 per annum
he would save only about $125 Ger
month. Likewise on power the rates
are the same up to bills Of 1920 per
month, when they diverge, the Pratt
rates being slightly lower but only en-
daylight power as it is provided that
after Z o'clock p. m. all motors above
one-half h. p must take the electric
light rates. What the council should
do is to cut the gas rate ordinance Ct
the Pratt Darling crowd and cut the
electric light and power rate of the
other crowd, and then demand that at
least the Grundy Center line be guar
anteed or no franchise.