Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-01-28

~ IotCduSe Soulc VI SiiS 81"
bills of the Marshaltown Light, Pow
er and Railway company have been
sent out prematurely, the company has.
perhaps, unwittingly tipped off its suit
against the city, which was filed in the
federal court at Des Moines today. and
in which the legality of the new gas
rate ordinance will be tested.
When a patron of the company got
his gas bill and began to do a little fig
uring, he found. altho no rate was
specified on the bill, that his gas had
been billed at the old rate. The patron
Clerk Derby for information, primarily
to satisfy himself that the new ordin-
ance calling for s1.10 gas was actually
in force on Jan. l, as he had been led
to believe.
Makes 26 Cents Difference.
This, bill was for $500 cubic feet of
gas which, at S1.45, amounted to $4.06.
A discount Of 70 cents was figured in
or 1886 net. :,
The new ordinance. adopted by the
council and effective Jan. l, fixes the
rate for gas at $1.10. without a dis
count Of any kind. The same bill at
$1.10 would amount to $3.OS, or saw
ing to the consumer of 26 cents.
Another patron was found who had
already received his bill. This state
ment was for 500 cubic feet or $1.16,
with a discount of IL cents, or $1.04
net. At $1.10 this same bill would
have been IS cents or a saving to the
consumer of 16 cents
Will Disregard Ordinance.
Superintendent NJ. w. Hovey, Of the
Marshalltown Light, Power and Rail-
way company. said today, when asked
what position the company had deter
mined to take, that the gas bills for
January and for the months that fol-
low were to be made out at the old
rate of $1.45, with the usual discounts
month following the one for which the
bill was rendered.
He admitted that the rate of $1.10.
which, according to the city's new or
dinance, should go into effect Jan. 1,
was to be disregarded by the COM
pany. He intimated that the companys
position would be made clearer to the
public in a few days. but refused to
say whether suit was to be brought.
Mr.. Hovey admitted that some of tho
bills had been sent out prematurely, it
having been apparently the company's
purpose to render no bills for January
until after the suit had been begun.
Attorney Admits Suit Forthcoming.
Mr.. Il. Binford. of Binford & Farber,
the firm that represents the gas COM
pany, was asked this afternoon w.heth-
sr or not he knew if the gas company
intended to charge the old rate Of $1.45,
and ignore the new city ordinance es-
tablishing the s1.10 rate.
Mr.. Binford replied that he did not
think the January bills had yet been
sent out, and he did not know what
rate was to be charged.
When informed that some bills had
been sent out. and the s1.45 rate had
been charged, and that Mr. Hovey had
said that the new ordinance was to be
disregarded, Mr.. Binford said that a
suit would be filed tomorrow or next
day, in which Che company would test
the legality of the new ordinance.
Suit Filed Today-City Enjoined.
Later Mr.. Binford gave out the infor-
nation that the suit brought by the
company against the city was filed to-
day in the federal court, and that a re-
straining order will be issued upon the
filing by the company Of bond for
$4,000 to pay all damages providing the
ordinance is declared valid. A writ Of
injunction will be issued by Judge Nc
Pherson this evening, it is understood,
restraining the city council from en-
forcing the ordinance.
Any Of the defendants, or other par
ties interested, may bring an action to
dissolve this injunction upon giving
five days notice
The city of MarshaMtown, every
member of the council, the mayor and
city clerk, are all made defendants in
the action.
Declares Ordinance Unconstitutional.
The action started by the company
is suit in equity, similar to the one
brought by the company in 1900 when
the same rate question was RAISED
compromise was effected in this clse,
and another ordinance was adopted by
the council.
The gas company asks the court to
declare that the city's new gas ordi-
nance is illegal because it is contrary
to the constitution of the United
States, contrary to the constitution OF
the state of Iowa, and contiscatory.
The bond required by the company
will guarantee a refund to the patrons
Of the difference between the old and
the new rates, in the event that the
court finds the ordinance to be valid.
If illegal the company of course keeps
the difference. AT any event the COM
pany will have the use of the peoples
money during what may prove to be
long time that the case is pending in
court.
.- Local Weather Record.
Fifty was Wednesdays maximum,
I~9