Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-05-20
UTILITY MEN REPLY TO CRl1I.
c,SM THAT HAS BEEN MADE
ABOUT THEM.
POINTS ARE COVERED
IN THE FRANCHISES
Public Is Asked to Road the Fran.
chises and Consult Attorneys But
Not to Squeeze the Franchise Mon
Between Local Factions-Rates Are
Very Low.

The franchise people submit the fol-
lowing discussion Of their franchises
mert:
| To the Voters: It is said against US
that our franchises should be sold by
the city at 100000 and that Mr.. Darl-
ing offered to pay 100000 for them.
Our franchises are worth what they
will earn above a fair return on our
! investment in the plant and our earn
ings come from the people. We have
cut our rates to the marrow and offer
the city council access TO our books
TO see that our profits are no more
than fair profits. We could have paid
any sum asked for the franchises II
We had been permitted to charge
enough TO get it all back from the peo-
pie. Mr.. Darling did not offer 100000
for the franchises nor half the sum-
He offered a , per cent gross income
tax after the fifth year and he kept his
gas rate up above 81 for five years so
he could collect enough money from
the gas consumers in the first five
wears to meet the gross income tax for
the next twenty years
1t is also complained that we are
getting these franchises for the pur-
pose of selling to Jones & Hovey. SO
far as the franchises read this point is
not covered. However, we now own
and operate utilities in other cities
many times larger than the Jones &
Hovey properties and We are acquiring
more of them. We are getting into the
utility business deeper While Messrs
Jones and Hovey are getting out. They
have sold their properties at Creston
and Chillicothe so it does not seem that
we would he planning to sell our fran
chises TO them. We viii say positively
that il is our intention to own and OPP
crate these utilities in MarshalltoWn
Yourselves if we get the franchises and
to vastly extend and improve them be-
sides Our contract with Messrs. Jones
and Hovey is to buy every dollars
worth of their Marshalltown property
for cash.
1t is openly charged that we are not
in good faith when we offer to extend
the street car lines across the railway
! tracks because the vladuct may never
be built We believe that the public
would not dare to ride in our cars
across the present grade crossings on
Third avenue or Center street and our
street cars could not make their sched-
ule if blocked by switch engines. We
are going to lend every assistance that
we can TO the city in securing the via
duct There is good street car business
for US in the Fifth ward If we can get
there
The story is being circulated that we
might accept one of the franchises and
reject the street railway franchise, but
the city council guarded against this
by putting the street railway extension
clauses in every one of the franchises
alike If we accepted the gas franchise
without the others we would have to
build an entirely new street car line.
Another curb stone criticism Of our
franchise is that We are going TO
charge 75 cents meter rental in addi-
ton to our electric light rates. Your
city attorney agrees with US that when
the franchise reads net minimum
monthly charge for lighting Of 10
cents" any man who can read English
should understand it. but we will go on
record here to the effect that our rate
for electric lighting will be as set out
in the ordinances down to a IS cent
minimum anu tlldl there VIII DC no at
tempt made by US to add the IS cents
as an extra for meter rent. This looks
to Us like unfair criticism.
We are opposed by q few factionai-
lists because we have not put up bond
for appearances sake. Your city coun-
Gil can cancel every one Of our fran
chises if we fail to perform as to street
railway extensions and we can't borrow
! dollar of bond house until we as
sure the bondholders that the fran
chises will not be Cancelled. so you are
better safeguardad than If you had a
bond. An indemnity bond is not col
l lectible where there is no damage
| proved and when We pay the expenses
! Of election you would have hard time
i proving any damage to the city if we
] failed to spend our money here.
Again we are criticized because we
do not pornlise specific gas pressure,
but our franchise contains the standard
specifications as to quality Of gas and
is identical with that in the Darling
franchise which is claimed to have been
the handiwork Of some Of those who
are now opposing us the loudest
I 1t is talked about town that we are
| not bound to operate cars on the street
railway extensions. but the franchise
reads. "The said cars shall be operated
l and run so as to give an eighteen
minutes service on the cemetery and
soldiers home lines and all other ex-
tensions except the city park and fair
. grounds and reasonable service to ac-
commodate the public on the city park
t and fair grounds extensions" How
could this be stated more clearly?
Some are going after us because We
do not sell twenty five street car tickets
for 81. but we are going to double the
street car mileage and double the
i length Of a scent ride. and stretch
t out your town. II we find that bulk
rates or excursion rates are profitable
] we will put them in force What dc
3 you want, street car service or a hand
: full Of the governments new half penny
coins? Street car lines do not pay big
t profits in town OF this size, so be
r reasonable about them.
l Complaint = made that twenty fEe
years is too long a time for a fran
D chise to be granted. No one can afford
e to come in here with the rates we pro.
y pose and exist unless he can have &