Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-01-31
MAYORS SCHEME
DISCUSSED AGAIN
PIERcE's MUNICIPAL OWNER.
SHIP COMMITTEE CONSIDERS
PLAN As TO urILITiEA.
MAYOR AND PIERCE FOR;
NORRIS AND OTHERS OPPOSE
Mayor Argued That Trustsssl,ip Of
Property Evsn at $s5ooo Bonus was
Better Than Trying to Enforce Re-
duosd Rate dinaness-committs
Divided and Adjourns.

Mr.. Pierce's municipal ownership
committee Of seventeen met in the
council chamber Monday evening to
learn the result Of a special committees
! unsuccessful efforts to negotiate a fav-
! orable deal with Messrs. Jones and
considering the arguments Of Mayor
! Ingledue and Mr.. Pierce as to why the
city should accept trustee ship of the
public utilities at a price Of $375.000
| even tho 1t was believed that this price
| was $4,000 above the physical valua-
| ton Of the properties and the opposing
arguments presented by others, includ-
GLIDING D. w. Norris. Jr., as to why it
would be unwise at this time to aban-
don and repeal the gas and electric rate
ordinances now in controversy In the
courts.
This committee composed Of five citi-
zens selected at mass meeting which
Mr. Pierce once called. five appointed
from the city council. five from the
municipal affairs committee Of the Mar
shalltown Club and the editors Of the
two newspapers has met several times
without accomplishing anything and
Monday evenings session proved as
fruitless so q two weeks adjournment
wa staken until Wednesday, Feb. 8.
The Mayors Scheme.
The particular scheme presented was
the offer made by Jones & Hovey to
Mayor 1ngledue about the time the
rate reducing ordinances were being
passed over the mayors opposition In
which Jones & Hovey offered to trus-
tee their utilities. take out 6 per cent
on s3s5,000 and credit the balance Of
their earnings on the purchase price II
the city council would restore the old
rates. In effect this amounted to a
continuous tender Of the property to
the city at a price which was to be re-
duced each year as earnings were TAX
en- out by Jones & Hovey in excess Of
s per cent on their gross price.
The smaller committee had decided
not to press this plan but approached
Jones & Hovey with the request that
they make bona fitie sale to local
trustees whom the city should name
and at price Of $4,000 above physical
valuation instead Of $1,000 which they
were asking in the offer to the mayor.
This was refused and the smaller COM
| mittee so reported. ~
The Arguments.
Mr.. L. NJ. Osborne and Mr.. George
Gregory addressed the committee stat
| ing that there seemed to be no way to
! deal with Jones & Hovey except az
Jones & Hovey's price and for them
selves they did not care very much
which way the committee should decide
1t ogo. Gregory did not have much
faith in the trusteeship scheme
Mayor Ingledue spoke at length and
very enthusiastically in favor Of ac-
cepting Jones 6, Hovey's offer regard
| less of the price because he believed
that the earnings Of the property would
pay out the purchase price In from
| nine to twelve years and the probable
expenses of litigating the rate ordin-
ances would be very heavy.
Mr. Pierce. too, favored the scheme
altho not 50 strong as the mayor, ex-
planning that the only. other alternative
was the building Of a competing cleo
trio plant by the city at an expense Of
5 so, 900 to $4,000 to light the streets
and to do commercial lighting and
power business.
Tho Objections.
After much questioning on the part
of the members Of the committee who
had not understood the plan Mr.. Norris
was called upon to explain why he had
Norris said that the offer made by
Jones & Hovey provided that they
themselves with others were to be the
| trustees. that they would retain con-
troll that while they nominally offered
an option to the city the city could not
lay legal claim to it because the price
was 100000 larger than any indebted
ness that the city could legally assume
and that therefore II all remained with
Jones 4 Hovey's good faith to carry out
their offer to the end. He said that
their offer provided for restoring the
old rates which looked to him at this
time like a purpose to get around the
present reduced rate ordinances With
out a law suit. Furthermore their
lawyers We're now pleading in court
that the old ordinances constituted a
contract between the city and company
as to rates which could not be violated
hence II a deal Of this, kind was made
the company would certainly claim u