Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-04-29
CONGRESSMAN GOOD SHOWS
MoNoPoLIEs HAVE NO RIGHT
TO FICTITIOUS EARNINGS.
CAN BE NO GOOD WILL
UNDER EXCLUSIVE FRANCHISE
Fifth District consressman's Hit With
Washington Chamber of Commerce
Attracts Wide Attenton-shows Gas
Can Be Manufactured For az Cents
Per Thousand Feet.
Especial Correspondence


tive James w. Good of Iowa, was the
leading speaker before the Washing
ton chamber of commerce meeting
called to consider organization for an
effective fight against the i,npositions
of the Washington Gas Trust. Mr..
Good had been invited to address the
meeting because his successful fight
for SO cent gas, as city attorney of
Cedar Rapids, had been widely her
aided all overe the east before Mr..
Good came to Washington. The gas
question is very live one in most
eastern and middle western cities at
/ present, and the Cedar Rapids fight. in
which it was established iudicially
that gas can be made and sold for 80
cents in City of $4,000 west of the
! Mississippi, was the most encouraging
thing that cheaper gas advocates had
observed in many years. Consequently
ever since Mr.. Good reached Washing
1 ton the chamber of commerce has been
urging him 10 come and tell the story
/ of the Cedar Rapids fight.
4 The price of gas in Washington has
long been 81. On the afternoon of the
day that Mr. Good was to address the
chamber of commerce the gas trust
paid him the remarkable compliment
of announcing a reduction of the price
to 80 cents--the price he had estab-
lished in Cedar Rapids. AS a result,
when Mr.. Good was introduced as the
4 .;ry:, ,aI
! ing, he was vigorously cheered.
The voluntary action of the Wash
ington Gaslight Company in reducing
the price to 80 cents, was analysed by
the speakers, Mr.. Good, j. c. Welli-
Yer, and Evan Tucker Representative
Good reminded the committee that ex-
( perience showed that these voluntary
reductions were frequently employed
by gas concerns to placate the public.
Especially was the committee warned
by the speaker that this action prob
ably presaged some demand for leg
islative concessions by the gas COM
panies.
After dealing with the practical i'm
possibility Of obtaining true insight
into the affairs of gas monopolies, and
the difficulties of arriving at true
valuation of their plants because those
best in position to know refused to
supply correct information, Repre-
sentative Good turned his attention to
Washington.
you supply great many more feet
of gas per foot of main than we do
thru the west and therefore the
cost of distribution can not be so
great" he said. The only way in
which the value or the cost of a plant
like this can be obtained is by inven-
tory and then You must employ some
rule with regard TO the life of a plant,
after which ii will be easy to figure
out the worth at the present time.
What would it cost to duplicate the
plant is the plan used by the courts.
1T seems to me that it would be
as great mistake to permit the i'm
mense capitalization of the two COM
panies here as it was to permit in New
York the consolidation of the seven
companies there several years ago.
If you remember those companies
are permitted to earn a return on not
only the value of the property. but on
eight million dollars franchise rights
as WELL
NO 1ood VIII IN monopoly.
Il believe" said Representative
Good, more emphatically, that there
can be, in a monopoly of this kind, nc
good will. A gas company is no more
entitled TO a good will valuation than
is a man who runs the only pawnshor
in town-you have got to go TO the
latter to borrow money, or do with
out; you must go to the gas company
for fuel, or burn wood. 1t is idle talk
to think for a minute that the gas
companies are entitled to single cent
of return on what they term 'gooG
will
If the two companies are permitted
10 capitalize their good will and the
innocent purchaser is permitted to buy
the stock thus recognized as legal, II
is quite likely that in the future the
courts will say that not only is the
physical valuation to be considered
but also the good will that has beer
permitted to be capitalized"
. Cost Put at az Cents.
An enlightening disclosure of TIL
general review of the gas situation
given in the early part of Mr.. Good
address was the statement that abou
!. ten years ago the department of com
: merce and labor had investigated tn
gas supply of twelve cities and had re
ceived confidential information tina
the cost of manufacture, including a.
: expense had been AZ cents.
1--WE are all willing" said Mr.. Coco
. ito give the stockholder fair retur
on his money. but if the city govern
ment of Chicago is willing that tn
people of that city should be held u
: for s. cents a thousand for gas whe
tit only costs something like so per cen
5 Of that amount, that is no reason VIII
} the people of Washington should b
J held up for 81.
I Typical Case of Juggling.
I Particularly appropriate to the locs
, situation was the Iowa representative
D comparison of gas company method
D as illustrated by the tactics employe
! by the Cedar Rapids company mum
. Der Of years ago. Capitalizing at $15t
s 900, he said, none of which was eve
paid in, three promoters had issue
:.