Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-01-31

contract had been made fixing the
rates forever, then II Jones & Hovey
should raise some legal or technical OBJ
lection TO the city taking over the prop
erty the city could not legally enforce
ttss option and could not get out OF its
contract as to rates. He admitted that
lawyersvmight overcome these difficult
ties, but that the committee had not
gone that far yet.
He explained that the federal court
had set tho city's rate cases for hear
ing In the May term only few months
off, that then the company would have
to show in open court what its property
was really worth and what its earnings
were and that then the city would
be able to see and examine the horse
II was asked to buy. Furthermore II
the new rates yielded only s per cent 70
Jones 4 Hovey. which the federal court
had held to be a fair return in the
New York case. the city would get. In
reduced rates, all that 1t could ever
get from Jones' 4 Hovey's plan of
charging per cent on fictitious price
and that If the city lost its law suit
the showing as to earnings and values
made in court would enable 1t to Inn
nediately enact new rates that would
be adequate and thus get for it's people
all the advantages OF municipal owner
ship. -
However Norris did not oppose
municipal ownership II Jones & Hovey
would make a fair price and make a
clean sale of their property to the ctty's
trustees and get out Of 1t themselves
Nor did he fear Pierce's suggestions Of
a municipal plant since one could he
built as good as Jones & Hovey now
have. new and modern, for the $S5,OO0
bonus asked by them that when built
1t would fix rates for service by COM
petition and that when the rates were
actually down Jones & Hovey would
sell at a reduced price The city would
then have two plants for what 1t would
now cost to get one but Norris did not
believe We were yet up to this alterna-
tive until the rate ordinances could be
tried out I'm court.
Experience at Cedar Rapids.
He recalled various schemes sprung
at Cedar Rapids to get the council
10 retract its 90-cent gas ordinance
but that the ordinance was finally sus-
tanned IN the district and state supreme
court. He said that the Des Moines
city commission was proceeding on the
same plan Of reducing rates by ordi-
nance as by statute provided and ne
was suspicious at this time OF anything
short OF a bona fide sale and relin-
punishment OF title which would sew
the city council up on its old rates
and repeal the new ordinances before
they We're tested.
The Figures.
It was argued that Jones 4 Hovey
had later conceded to reduce rates 10
per cent from the old rates but Norris
replied that this was no more than they
offered In open council to do to head
off the ordinances Furthermore. he
figured that with profits now Of $4O0 900
per annum, s22,5OO would be used to
pay per cent on s375.000. leaving only
$4,000 to margin down the price il the
old rates should stand. that It there
should be 10 per cent reduction in
gross rates this would cut earnings
$4,000 unless business grew marvel
ously, which would leave only $500
per annum to apply on margins and
that Jones & Hovey could legally vote
themselves $500 salaries each il they
should desire to wipe this out so that
their estimate OF the property paying
out in nine years was false il they took
for themselves the first grab out OF
the earnings at per cent on $375,000
Norris figured that It would require
anywhere from twenty-one to forty
years to pay sit evan If Jones & Hovey
should act in good faith. In this he was
not willing to trust them, since he knew
to his own satisfaction that they had
tried to renew their own franchise thru
Pratt and Darling as agents, and he
believed now that they were trying to
circumvent the rate ordinances without
coming to triad.
Those present were Councimen
Clark. Good, Herman and Gregory.