Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-04-17
Local Comment

The city council has passed an ordi-
nance for 81 gas in Marshalltown. The
gas company has enjoined il. Now if
the books of the company would show
that 81 gas would be an unreasonable
rate, Messrs. Jones & Hovey would
simply take the council down to their
office, show the books and prove their
contention without the expense of
lawsuit The council would then re-
wise its ordinance. But no, the books
are not to be shown unless the city at
torney does what Jim Good did in the
Cedar Rapids case, viz: have the books
ordered into court. Senator Van Law
introduced a bill in the legislature this
winter giving city councils power to
order the books into review when fix
ing rate, but public service corpora 4
tions all over the state sent lawyers
and lobbyists to Des Moines who de-
feated the. bill. indicating that gas
companies everywhere object to having
their real earnings known when rates
are to be fixed.
Now, if this injunction against 81 gas
is to come TO trial, there is some dam
ger of the Jones and Hovey earnings
being exposed. and hence it follows
that more than one effort may be ex-
pected TO appear in this community
to get a new franchise and higher
rate before that case has 10 be tried; in
fact, any effort to contract with The
city council or citizens for higher
rates before the present ordinance is
tried out in the courts may fairly come
under suspicion
But what do we care about a few
cents on the rate if we get the SER
vice." someone asks. Just this much.
Marshalltown consumes 90 900, 900 cubic
feet of gas per annum now. She should
consume 100000 to average with
other towns. The increased rate asked
was s1.25 instead Of s1.00. On $1,000
600 cubic feet per annum the people of
Marshalltown would pay to the gas
company $3.50 per anum more than
they would pay at the s1.00 rate. Com
petent engineers have investigated this
plant and have recommended that
$4,000 would improve both the gas
and electric light plants to first class
efficiency and capacity. In ten years
cause the people to pay for all the i'm
provements ard still let the gas com
pany own them. If it is asked that the
increased rate apply for twenty-five
years during the life Of the franchise
| this extra twenty-five cents bonus on
every thousand cubic feet of gas would
buy the entire Jones & Hovey plant,
gas, electric lights and street railway
up to the bonds at Jones & Hovey's
longest price and pay for the necessary
improvements besides. If the city at
tcrney does his duty competent engi-
Eeers will appraise the physical value
of the plant here at 100000. Several
engineers have already established this
figure, and the books will show that
| if Jones & Hovey had been compelled
to sell gas last year at s1.0o they could
have paid the interest on their bonds
and have earned 355 per cent on their
actual equity in the property. This
ought to be reasonable
1t is argued that we could afford
! to pay higher rates in order to get rid
of Jones and Hovey but if we pay
higher rates they would probably not
/ want to sell or would probably sell
to blind company and take stock in
the blind company for their equity. On
the other hand if we reduced the rates
to what they ought to be and made
| them stick in court. Jones and How
ey would be more willing to sell and
the new purchasers would not need
such high rates because they would
not have to pay so high price for
the property. To raise the rates from
81 gas would make the people help
pay an exhorbitant price for Jones and
Hoyey's property without owning any
thing in return. Instead Of the retail
merchants paying $1,000 on the pur-
chase price when Mr. Denmead want
led to sell the pottery plant to Fl