The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1912-04-19
JUDGE FlvORS lIER co.


Iowa judst Issues Decree enIelhlng the
enforcement Of An Ordinance Rsgu-
|ating Water Rates.
Des. Moines, Iowa. Judge Smith
McPherson, upon the findings of
the Master of Chancery after four
years of litigation, has issued de
cree enjoining the enforcement of
an ordinance passed by the city of
Des Moines regulating the rates of
the Des Moines Water company. In
Judge McPherson's review of the
findings of the ease, covering over
one thousand pages, the following
points are noted:
The Master of Chancery has
found and fixed a valuation upon
this property, as "going concern"
as distinguished from the naked
plant. As to this, both reason and
authorities sustain him. Every
thing of business character is
thus valued. The peanut or news
stand on the street corner, The trunk
line railroads and the street rail
road systems, the city and village
stores, the newspapers, the car
riages for hire in the cities, diaries,
bus lines, and every conceivable
business proposition, has a geater
value when the business is estab-
lished, and it is set going, over and
above what such value would be
when but ready for operation. X
1t is not material whether
we call it "good will" or the value
of the going concern" but there ia
an intangible value there, and the
owner has the right to have it de-
termined on such increased valua-
ton. These rules apply with equal
force to water works system. 1t
took long time to build up the
system. First, it had to get in touch
with patrons, make contracts, in.
stall meters, and establish the bust
ness. During that period the CAPT
tai stock was not earning what il
should have earned. Now that it il
a going concern, it is entitled to
have the values considered, in ar.
irving at the true valuation OF the
plant. Such reasoning ia Endorsed
by conrts, both national and state
supreme courts, and snch conclu-
sions are the result of sound rea
soning. Such are the tests in all
other vocations and business en-.
terprises.
1t is now more than three years
since the passage of this ordinance.
This case illustrates the evils in
connection with the fixing of rates
by municipalities to govern public
utility corporations. Neither party
is properly chargeable with any
dereliction, and yet the fact remains
that by the time this case is decided
by an Appellate Court at least four
years will have elapsed from the
passage of the ordinance until the
matter is put at rest by the courts.
The present expensive chaos
should be brought to an end. 1t is
known by all informed men tina,
city councils necessarily adopt rat
with but little or no investigation
as to what rates ought to be fixed
The result is that we have ordi.
sances fixing rates based upon bu,
little Intelligent effort for the ascer.
tainment Of the facts. Some of the
states, like New York, Massachus.
etts and Wisconsin, have state com
missions of competent men. who
give public hearings, and who dc
nothing behind doors. nor in sc.
crecy--a commission with no mem
Der interested as a taxpayer Of the
city, aud with no member subjec,
to influence other than the ascer.
tainment of the truth and the facts
Rates are thus fixed with which
most fair minded people are ready
to acqulesce. 1t is strange that we
have no such Legislation and nc
such missions in Iowa.
The fact that the compauy's char.
ter may be revoked by forced sale
or that it may expire at the end OF
% years, and that it will be continu.
ally kept in litigation, are all haz.
ards, which in other business enter.
prises would increase the rate OF
interest that the borrower must pay
and justly entities it to a highe,
rate of earnings than if it's earninge
were certain and fixed, and were in
perpetuity or of long duration.
The master makes some findinge
in favor of the city; but on the
whole case his findings are adverse
to the city.
vincentian Fathers will Conduct Mission
A mission to be conducted by the