Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-04-24
FOR TEMPORARY
INJUNCTION FIXED FOR THURS
DAY MORNING.
TO BE BEFORE JUDGE WADE
IN DAVENPORT DIVISION
City Would Not Be Surprised If it Were
Temporarily Restrained by Court
From Enforcing Old Rate Under
New ordinance-council Employs
Accountant to Audit Utility Books.

The city and the Iowa Railway and
Light Company are expected to meet
Thursday in the first round of the legal
battle over the local gas rate before
Judge M. ]. Wade in the Davenport di-
vision of the federal court for the
southern district of Iowa. The Rail
way and Light Company has applied
for temporary injunction to restrain
the city from enforcing its new ordi-
nance, continuing it's old rate of 81 for
gas. The hearing on the application
for the injunction has been set for 8
o'clock in the morning.
The city would not be surprised If
the application were granted by Judge
Wade, with the provision that the Iowa
Railway and Light Company must post
a bond to protect the city, and that it
must deposit in bank, there to be
impounded pending the final adjudica-
ton of the case, the difference collected
from consumers above the rate as fixed
by the city and any higher rate the
company may put in force if the tenn
porary injunction is granted.
1t is expected that the utilities COM
pany will raise the rate if the ITEM
porary restraining order is issued. 1t
will at once put in effect new and
higher rate for gas. It has asked the
council to fix this rate at $1.40. If the
company should establish this rate, and
if the court ordered it to deposit the
difference between the old rate and the
new rate as the money is collected, then
the company would be compelled to de-
post the extra 40 cents per 1000 cubic
feet of gas every consumer paid it, and
as it was paid. This procedure would
protect the consumer, for if the court
finally held in the trial Of the case that
the company is not entitled to the in
crease, the money then impounded in
the bank, would be ordered distributed
back to those who paid it.
In fact it would not be out of line
with similar federal court proceedings
in like cases In the state, if the court
granted the temporary injunction with
out a hearing, and to order bond post
ed and the money impounded as de-
scribed above. Such orders were issued
by the federal court in similar cases at
Ottumwa and Perry.
City Hires Accountant.
Preparatory to final adjudication OF
the controversy, the city is preparing
to audit the books Of the company. It
has employed the firm Of certified ac-
countants of Warwick, Mitchell, Peat
G. Co., of Chicago. James w. Hall, a
member of the firm, and an expert on
public service accounting, will have
personal charge of the audit here,
which it is expected will be begun early
in May. Mr.. Hall is known by similar
work in important cases in Iowa. He
was the expert employed by the city in
the famous gas case at Cedar Rapids
number of years ago, in the prosecu-
ton of which Congressman James W.
Good, acting for the city, made a repu-
tation. Mr.. Hall also was the expert
engaged by Des Moinse in it's gas case.
The city is preparing soon to engage
company Of engineers to make an
appraisement Of the physical value Of
the local property of the public utilities
company.