Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-08-24
fierce conflicts that have ragged abou,
Maev,ear Did Il.

HeTC0 COu&ASCtS S0AS oeSo SS8o0 OoO~s
his head.
Maeviear Did Il.
Tho gas rate FOR Dies Moines had
been reduced. under an old charter OF
tho company. from 3l.3O to 81 In fivs
successive steps. as the company char
ter provided for reduction whom II could
be shown this would not affect the ruin
Of the property. Each drop had been
resisted with some vehsmence. Then
1t was that soon after the commission
form Of government had become we'll
settled in Its work that some inquiry
was made by MacVicar and others with
a view to further reduction. il can be
said fairly that neither the gas COM
pany nor any other public service cor
poration planned that MacVicar should
get In on the commission government.
and in fact the SLATE" which was all
fixed up by those who wrote the law
and adopted the commission form. was
broken at the first whack Of the people
and great many things have hap
pened under the commission form that
was not In the minds Of those who
aided In having Il adopted.
Company Goes to Court.
The ordinance ordering reduction
Of the gas rate to 30 cents Was made
effective Dec. 81 1910. Complaint was
made by the company that II was hur-
ried thru when nobody was looking. In
explanation it Is said that 1t had to 90
that way or not at all II the right
persons had been notified and the right
pressure had been applied perhaps 1t
would never have been passed. But Its
passage meant a lawsuit.
The gas company few to the federal
court for refuge and temporary re-
straining order was ws, ~; but last
summer Judge Robert Sloan. OF keo-
sauQua, q veteran Judge long retired
from the bench. commenced an inquiry
as q special master In chancery under
appointment from the federal court. to
determine whether or not the broad
claim made BY the gas company was
justified that the present 81 rate was
positively the minimum limit OF price
under which the company could pay 4
return on the investment. 1t was an
all summer Job.
Contentious voluminous.
The company presented the usual
arguments and evidence. figuring In
every conceivable expense Of the COM
pany as a part Of the investment and
contendtng that as basis for Its earn
the present cost Of reproduction II It
was to be all built over under condi-
lions as they now exist. and also con-
tending that the element OF good will
should be reckoned very high In a go
ing concern of this kind. The company
and the city had very able attorneys
for the former, Messrs. Parker Carr
and Guernsey, among the best of cor
poration lawyers; for the city and the
people, H. w. Byers. corporation coun-
sci and former attorney general. and
Robert Brennan, city solicitor.
1t was a battle Of experts. SO far as
testimony was concerned, for the COM
pany set out to overwhelm the city
with expert testimony as to the cost
OF gas plant and the difficulty OF
making gas: and the city retaliated by
placing equally good experts to make
different showing.
Cedar Rapids Case Aided.
One thing in favor Of the city. how
ever. was that quite recently the city
OF Cedar Rapids won a notable gas
reduction case involving much the
same kind of a controversy, and de-
cision OF the United States supreme
court in that case was a useful guide
In the Des Moines case. That suit was
fought thru by Congressman Good and
perhaps without It Des Moines would
not have Jared SO we'll.
Judge Sloan. as master or referee,
upheld the contention Of the city at
every point. Now Judge Smith Nc
Pherson has sustained the master and
determines that 80 cent gas means
fair profit He rejects the "reproduc-
ton cost" theory as wholly untenable,
as 1t might cost a great deal more to
build the plant now than was ever put
in It in fact. He virtually decides that
good wiz is no more the property OF
the company than Of the people who
pay the bills. He found. with the
master that. tho value OF the plant. MS
a basis for computing profit. Is very
much less than had been claimed by
the company.
Tho decree gives three months for
the company to make the change In
method Of doing business. but provides
that patrons are entitled to a rebate on
the overcharges since Dec. p. 1910.
But he also enterad an order that at
ter three years the company might
move to reopen the case and make
showing that the 80 cent rate ia not
compensatory in fact.
While only few were conspicuous
in making the fight for the lower gas
rate they were backed by large body
Of eds Moines people who had come to
believe that Des Moines could got
lower rates for gas and other things.
and as consequence there Is great
rejoicing.
New Railroad lseislatinon Probable.
Special to Times Republican.
Des Motnes. Aug. 24.-The somewhat
rude refusal Of the railroads to grant
the usual reduced rates to Iowa gath
erings Of farmers will. 1t Is believed.