Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-03-05
Local Comment

with nothing but subscriptions to stock
and collecting only so cents per month
on each share. the companys first
years tived expense has been more
than its earnings but it will never be
so again. Investments on the INSTALL
ment plan grow like snow ball. Even
now with practically $4,000 invested
land loaned out the interest earnings
are large enough to pay all expenses
and hereafter all of the funds paid in
Will be handled and invested at per
cent interest free of cost to the share
| holders.
| A domestic local savings and loan
association offers a grand opportunity
to wage earners and people not en-
gagged in business to have their savings
INVESTED by competent men almost free
of charge. All they need to do is to
subscribe for the stock and pay IN their
investments in monthly installments.
The money is then loaned upon first
mortgage security and every loan has
to pass the scrutiny of large board
composed of the best business men of
the city who donate their services In
time the little fund which has grown to
! $4,000 during the first year will have
grown $150,000 and the earnings to
those who have saved will have been
enormous. Those who paid in the
$1,000 were subscribers to the first SER
les of stock. They will keep on paying
for ten years more when their stock
Will mature at 500 for each share
which represents approximately SO
cents per month for 1872 consecutive
months or $50 paid in. But already the
second series of stock has been opened
subscribed and closed and now the
third series is open to subscribers. So
IT is that the SNOWFALL grows until
large share of the population become
money loaners and a never failing fund
is available to be borrowed by anyone
who owns lot and wants to build
new house on it.
Messrs. Jones and Hovey have been
spending a few days in town reconoit>
ering the rate situation to ascertain
whether they had best concede, fair
rates to the people of Marshalltown or
whether they can still hold on to their
snap for a few months longer The
people of Marshalltown last year paid
these gentlemen approximately sos, 900
upon which they made profit of 500
600 after paving their interest charge
of $4,000. This 100000 represents the
earning capacity of an equity which
three sets of engineers have ALI APP
praised to be approximately $4,000 in
value. 1t is 60 per cent on the capital
invested.
There are just two reasons why this
precious pair enjoy such spoils. One
is that the people do not insist upon
their city council giving them lower
rates on gas and electric lights and
the other is that when low rate or
dinance is passed the city council and
mayor are content to employ the COM
pany's own attorney to defend the city
against the companys Injunction
In conversation with a T.-R man Mr.
Hovey. of Independence. was reminded
that the Waterloo company had volun-
tarily granted 81 gas whereupon he re-
piled with much feeling of unfair COM
parison by asking. DO you know why
they did it? They wanted to make
water gas when their franchise pro-
vided for coal gas and they gave the
81 rate in return for the councils per-
mission to manufacture water gas"
The newspaper man remarked that he
wished the city council here had the
company by the hair and perhaps Mr.
Hovey would give US 81 gas. He even
predicted that before the company's
bonds came due in 1913 this company
would be wanting enough from our
city council to give us 81 gas, too.
q
The subject was quickly changed to
electric light rates. Now, there are
cities in Iowa where the light rates are
as high as Jones &, Hovey's rate but
only a few There is an Iowa county
seat town not far distant which has
rate on lights Of cents with 8 cents
after the turning point. Jones &
Hovey charge IA cents and cents.
This particular town has a constant
service charge of 80 cents per month
which adds another cent to the meter
charge up to the turning point making
the actual rate cents and cents for
what Jones & Hovey charge IA cents
and Z cents. Now, is this an equitable
rate?
The T.-R has a letter from the own
er of the plant in which he gives his
volume of business al about fourth
that of Jones & Hovey and yet he says
that he can show per cent on capital
invested after allowing almost per
cent for depreciation. He explains, l
however, that his purpose in taking |
over the plant was not to see how much |
money he could make out of it but to |
give the best possible service to the |
town" He is not taking chances eth |
er, for the municipal plant at Rich
rnond, Ind, makes money at cents
and the one at Danville, Va, piles up |
a surplus at cents. Jones & Hovey I
charge IA cents to nearly everybody |
and cents on small fraction of light |
consumed over turning point. Colonel |
Pratt once offered to concede fiat rate |
Of 10 cents in place of Jones & Hovey's
Ia cents, and no turning point If the /
T.-R. would support his franchise. He |
baked at 81 gas. Then the Mcbride
group who wanted to build an interur-
ban offered 81 gas in three years for
the privilege. Darling offered it in five
years. Burlington, Des Moines, Water
90 and Cedar Falls have it now. Cedar i
Rapids has exposed the books of its gas
to the district and to the SUI
preme courts and both courts have
found a rate Of 80 cents equitable.