Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-03-19


ranks OF the local municipal ownership
party and viii prepare a plan b
which the city can acquire the property
Of the aiarshalltown Light, Power and
Railway Company. exclusive Of the
street car line. This plan, he says. was
submitted to Jones & Hovey, owners OF
the public utilities, al a conference had
with the mayor Friday afternoon. and
they. the mayor says, declare il ac-
ceplab1e Io.Ihe,n.
In fact, according TO a statement
made by the mayor TO the Times-Re-
publican this morning, Jones s. Hovey
are ready to accept the proposition as
soon as they and the mayor can agree
on the price to be paid for the property.
This important detail agreed TO- Mayor
Ingledue sees nothing that can stand
in the way Of carrying out the plan.
Let 1t Pay For Itself.
Mayor Ingledue is not yet ready 70
make public the details OF the plan,
but he said the basis of the scheme vas
10 let the earnings of the property pay
the cost OF purchasing i. The plan
does not contemplate the city paying
anything down al the time Of pur-
chase, but it IS to be given possession
at once regardless OF this fact
The mayor is confident that out OF
the earnings Of the property the city
could have Jones & Hovey's equity paid
for within not more than five years
from the date of taking possession
ContempIates Lower Rates.
This is with the understanding that
the city would make a material reduc
ton in all rates, gas, electric light, and
power at once and further reductions
later on. The increased sendoul OF
gas, by reason Of the lowering of the
rates, it is estimated, would greatly
increase, instead of decrease, the net
profits OF the property.
Mayor Ingledue does not contemplate
the acquiring Of the street railway line.
His plan is for Jones e Hovey 10 re-
tain this branch of the utilities, the
city to furnish the line operating power
at the cost of production.
Jones & Hovey are 10 receive 6 per
cent interest on deferred payments of
the purchase price, and are TO take
over the bonds when they fall due at
the per cent, which they are now
drawing, until such time as the city
wants to float new bonds 10 replace
them.
PfiCe very I'M PofIaht.
The price which Jones & Hovay pro-
pose TO ask the city for their properly
will make al the difference in the
world For instance this property has
been appraised by three different sets
! of efgineers for as many prospective
s purchasers within recent years. The ap-
praisals all average about s200 900 for
the entire plant. The mortgage is $780,
900 leaving an actual equity Of $4,000
But, Of the 100000 taking the various
items of power house, car barns, rail-
way tracks and transrnissions, motors
and trailers at the engineers APP
praisals s72,250 is in the street car sys-
tenn, s61,750 in the electric light plant
and $4,000 in the gas plant. Above
figures do not include Improvements
made recently which will not exceed
$4,000 when, com pleted.
Now, Il the gas and electric plant
onlysisato behacquired the value of this
part OF the property viii not exceed
s127, 750sactual appraisement whereas
the. first snortgage bonds are $4,000
on the whole plant. The question will
arise: "Win the city be holden for all
i.cf the bonds on the purchase of only
( $12T75o Of the plant?' And how much
wilEJones &, 'Hovey ask for their prop
erty in..excess Of the value placed up
on it by these different engineers ~
These figures had better be fled away
in the vest pocket of each citizen for
reference when the deal comes before
the city council.
If the city could buy the electric
light and gas plants al a fair valuation
with all of the $4,000 Of improve
ments paid for aggregating $500. 900
and fFoI1id assume the whole amount OF
the mortgage, the mayor is correct in
stating that the equity could be paid
for tot the earnings. Reduced rates
would cause gross income to jump up
to large figures and the net profits af-
ter paying interest and repairs could
easily pay for the equity in two years
and pay>onethe bonds in six more But
tho wise way Of financing would be to
give Jones &s.yHovey a new issue Of
first mortgage twenty-five year bonds
for-the whole amount, said bonds COM
ing. due in twenty-five equal annual
instdments. Rates could then go so
low that something would have to be
done TO keep factories ana people out
ef tn~n provided cal-ays that neo-
pie could elect competent and honest
administration.
Jones & Hovey to Make Offer.
According to the mayor it is ex-
pected that Jones & Hoyey will go be-
fore the council next Tuesday night
with q compromise offer of new and
lower rates for gas. electric light, and
power than are now in force. These
rates, which the mayor did not want
to give out, are not low enough to
suit him he said, and he would there
fore not accept them.
He said that he made an offer of a
schedule Of rates to Jones & Hovey
Eriday. which they thought was too
low, 50 they proposed to submit their
new rates to the council. The mayor
said he would not submit their sched-
.ule OF rates for them because they were
not satisfactory to him.
Can Begin Gardening.
Where ground used for gardening is
In suitable condition early vegetables,
such as lettuce, radishes, onion sets,