Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-05-24
REPLY 70 'pfsacs.
Franchise Grantees Claim Criticisms in
Circular Ass Untrue.

VOSouloe ~ 0UuOOs
To the Public: tyt
statements made in the circular put
out by Mr.. Pierce and a few prominent
leaders Of the socialist party OF your
city.
/. The gross earnings OF the present
utilities are not 100000. and the tax
in the Darling franchise was not worth
100000 to the city nor half that sum.
Furthermore. 81 gas was put Off by
Darling for four years until he could
collect enough from the people to take
care of his tax. A franchise Is worth
only what the people will pay in their
rates. Your council asked us to cut our
rates to the lowest point and no bonus
would be charged. We have given you
the equivalent Of tx cent electricity
for lighting, cent electricity for pow
er and 81 gas. You can't find mu-
Ricipal plant in a town of this size
which makes lower rates, If you can get
all your public service from us just as
cheap as from a city plant. why wait
years for an uncertainty? Why wait
until laws can be changed? Why vote
bonds and taxes when. we offer serv-
ice at the same rates which cities OF
your class charge from their own
plants? We are paying the people as
individuals $4,000 per annum for this
franchise in rate reductions and we are
doubling the street railway mileage be-
sides.
2. 1t is not fair or right to say that
our light rate is IL cents, when our
primary rate is only 1913 cents net and
we have secondary rate OF 6.3 cents
net and a third rate of 40 cents net
and when all three rates come inside
your present turning point up to which
you now pay IA cents. Our rate is
practically equivalent to ~ cents net,
fiat.
3. The power rate of 2A cents is a
concession made to the city in return
for the use of It's streets. 1t is virtually
coal and labor cost to us and we can
do the city pumping mostly after mid
night when the lights and factories and
street cars are idle and we have no
other load on.
4. No bond has been put up because
we are not dealing in jokers. The
Darling bond was not enforcible. and the
city could not collect on our bond if it
could not prove actual damage We
have conceded the council the right to
cancel our gas franchise, and our cleo
trio franchise as we'll as our railway
franchise II we fail to build the ex-
tensions promised and your city at
torney and such lawyers as Mr.. Van
Law and Mr.. Carney associated with
him in the city's rate cases all agree
that this provision is sound in law. Who
is Mr.. Pierce that he should question
their judgment?
5. 1t is malicious or inexcusably
stupid to say that our gas franchise
does not guarantee quality or exclude
sulphur" when Sec. provides for gas
of 16-candle power and 900 British
thermal units wholly free from sui
phuretted hydrogen" The council is
granted power to regulate the pressure
6. 1t is also an oversight or smisrep-
resentation to say that because we are
granted reasonable" notice when gas
is to bSstested we are thereby given
time In Which to n'fx" our gas. When
gas is tested the city obtains a sample
and takes It to a2laboratory. This
sample can be obtained without our
knowledge, placed In a receptacle and
carried to the laboratory. All we re-
serve is the right to be present when
the test Is made 80 as to see that 1t Is
q correct test. Testing gas Is technt-
cal business and we would not want to
be condemned by astestS made by an
inexperienced person IN our absence.
z It ia actually mendacious to say
that our franchise does not provide for
street car transfers when 1t specifies q
5 cent fare for a. ride from one point
on our lines to any other point Your
city attorney and Attorneys Van Law
and Carney all hold that our franchise
does protect the public on this point.
What lawyer has Mr.. Pierce consulted?
g. It is false Snd untrue to say
that our franchise does not guarantee
service on the extensions when section
1e provides that said cars shall be OPP
Grated and run so as to give an
eighteen minute service on the ceme-
terry and soldiers home lines AND
ALL OTHER EXTENSIONS except
the city park and fair grounds and
reasonable service to accommodate the
public on the city park and fair
grounds extensions"
g. 1t is misleading and unfair to
say that municipal ownership is dead
If our franchises are voted because
the city has reserved the right to build
plants of its own by providing that our
franchises are not exclusive. Our
proposition Is merely request to take
the place of the present company. Your
city could not buy 1t today because
there is no authority in law for city
to buy a street railway and the pres
ent legal limit of indebtedness. would
fall short Of half the sum that would
be required to buy the properties. You
might change the laws, but what's the
use if we make rates as low as city
nlantS make?
10. 1t is unfair to say that we are
going to doctor our books and water
our stock because the city is not to
examine them for five years. Our pres
ent agreement as to rates runs for five
years after which time the council has
access to all of our records. our in
voices Of purchases, vouchers, every
thing. Chartered accountants, gas en-
gineers, and electrical engineers can
appraise our properties. If our books
have been doctored it will be found
out as 1t always has been whenever
experts have obtained access to the
books of any public service corpora