Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-08-31
DESPITE PROTEST OF GREGORY,
MccARrEN AND HULL MAYORS
CONTRACT GOES
TONY IN A GREAT HURRY
TO HAVE DECISION MADE
Mayor Himself Makes Appeal to Mem.
bers Not to Cast Opportunity Aside
Wan Law Shows How Unfair Con.
tract ls-Herman Loyal to His
Maker.

The city council Monday night did
just what was expected it would do
adopted the resolution and contract for
the public utilities franchise regard
less of the opposition of three members
who urged that more time be given for
discussion and digestion of the merits
Of the most important document.
Messrs. Gregory, Hull, and McCarten
opposed action on the measure Mon
day night, and Senator C. H Van Law,
appearing for the Mcbride interests,
rointed out the unfairness of the con-
tract. and Its discrimination as be-
tween one set of capitalists and the
other
The resolution calling for the posting
OF bond for $4,000 that the promo
tiers would elect to do one of two
things, either to take over the Jones &
Hovey plant or build new plant, was
the first to be presented. The resolu-
ton also called for the posting Of a
bond for $150,000 by the group OF men
who expected to build a new plant,
calling for the erection of the new
plant within twelve months, and that
within eighteen months the mileage of
the electric light and gas plant and the
street railway system would equal that
Of the present plant.
Mr.. Herman, who presented the reso-
luton and accompanying contract
moved the adoption, and Mr.. Gregory
moved to amend by deferring action for
one week. The Gregory motion was
lost on the vote, which followed a
lengthy discussion, Gregory, Hull and
McCarten voting aye, and Clark, Good
Herman, and Psenicka nay. The orig
inal resolution of Mr.. Herman was then
adopted by the same vote.
The Freeze Out Contract.
The contract as passed at the may
ors urging provides that the party
wishing a franchise to sell gas and
electricity, in Marshalltown must first
that within thirty days from the date
Of the contract and, Of course, before
the franchise is voted, he will elect
either to buy and to rehabilitate the
Jones & Hovey plant or to build new
one. In case he elects to build new
plant the $4,000 bond still remains
operative guaranteeing that he will put
up second bond Of 900; this In
turn guaranteeing that he will build a
new, gas electric light and power. plant
and street railway within eighteen
months but to have it completed and
in operation within one year, making a
100000 bond necessary.
| It is then provided that in case Jones
& Hovey or anybody else shall sue the
city the franchise owner must pay all
of the city's costs without having the
right to appear and defend such suit
1t then provides that: 1.-THE mere fact
that either party to this contract is en-
joined by the counts from proceeding
will in no manner extend the time fol
the perform ance of the conditions des.
ignated"
In event of either purchase or ar
election to build anew, the franchise
owner must pay the special election
expenses and put his rates into effec
within thirty days as agreed by or.
dinance but no rate ordinances have
as yet been disclosed by the mayor
The plan seems to be to put this con.
tract up to the rival applicants. TIL.
mayors crowd who are believed to b.
lacting for Jones & Hovey and WIKI
hold an alleged option for purchase
lean elect to buy and then all they 11av,
Ito do Is to attach copies of rate or
ldinances Of their own writing market
requested" The Mcbride group VIII,
have offered the lowest rates on serv
ice would be barred from any compe
titton in the rate agreement for, hav
ing been effectually frozen out by tn,
sand bag terms of the contract befor
any rates are considered, there woul,
be only the one applicant for a fran
chise when the mayor finally wa
forced to disclose the rates the Pratt
!. clearinghouse & Hovey combination
propose.
Thus group of capitalists, who hav
had right-of-way men in the field 70
months working upon an interurba
project for Marshalltown, who hav
been voted a franchise for public util
ity plants in Boone, and who offer tn
citizens of Marshalltown lower rate
than either the mayor or his favore
Jones & Hovey group have propose,
are confronted by the mayor and ar
given the alternative of guaranteein
to buy Jones & Hovey inside Of thirt
days when Jones & Hovey do not war
to sell or of building new plant with
in one year equal to the present on
under a 100000 penalty bond whic
would be forfeited in case Jones
Hovey or anybody else succeeded
delaying them by injunction. Not
word has as yet come to the city cour
ell as to what rates the Jones q Hove
crowd will consent to and no membt
of the city council Is able to find o,
what the rates are TO be after the II
terurban people have been forced
fail to accept the impossible contra
and when Jones & Hovey have write
their own rates under section ! whic
provides:
THAT all ordinances which first part
. desires to have passed and submitte
shall be designated as requested
first party and properly identified ov'
the signature Of the first party"
If finally voted by the people Jon,
& Hovey could thus secure q renew
I of their franchise upon rate ordinanc,
written by themselves and marked r,
; quested and without competition vii
i anybody else unless the competit.
, would sign a contract to put up SOC
. 900 where Jones q Hovey could eau
, its forfeit by injunction.
Too Important Fer Haste.
In making his motion to defer M
Gregory said that the consideration
this resolution and contract was Il
most important question that had eve
or ever would. come before this coul
Icil. It should be considered very car