Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-04-10
PUBLIC UTILITIES COMPANY
FILES APPLICATION AGAINST
CITY IN FEDERAL COURT.
NO ATTACK MADE ON THE
ELECTRIC LIGHT ORDINANCE
Alleged in Bill of Complaint Filed
That Ordinance is confiscatory and
That the Old Rate Re Established
Is Below the Cost OF Producing Gas
at the Present Time.

The expected legal hattie over the
sas rate in this city growing ont of
the controversy between the Iowa
Railway and Light Company and the
city council for new ordinance increas-
ing, the rates for gas and electric light
service, has been begun in the federal
court at Cedar Rapids. There has
been fled there By the Iowa Railway
and Light Company a bill of complain,
against the city and city council in
which application is made for an order
for a temporary restraining order to
enioin the city from putting in force
ordinances passed last week.
These ordinances e-establ;shed the
old rates for gas and electric light
service. The ordinances go into effect,
unless the city IS enjoined. on April Is.
The application vas fled in the federal
court presumably because Of the al
legations that the new city ordinances
in effect take the public service cor
corations property without just COM
pensation, or due process OF law. guar
antees OF the United States constitu-
ton
Filed But Withdrawn.
The bill which was filed at Cedar
Rapids Tuesday was today with
drawn. as information from the Cedar
Rapids division OF the federal court
error and should have been filed in
the Des Moincs division of the federal
court for the southern district of Iowa
where It was said It would be filed.
Recitation Of History.
The bill sets out in detail the history
of the company's entrance into the
city, the granting Of the original fran
chise, and the passage of the rate or
dinances five years ago, fixing the rate
for gas at 81 per 1000 cubic feet TO
Jan. !, 1918. 1t is alleged that during
the last year and three months that
the receipts OF the gas business have
not been sufficient to pay operating
| costs, maintenance, taxes, and deprecia-
ton and interest on bonds and that
during the last two years the cost o;
making gas has advanced not less than
10 cents per 1000 cubic feet. 1t re-
cites the efforts Of the company to have
the city investigate its accounts and
| basis for a new rate ordinance, but
I that the council has not done so, and
without doing so has passed a new
ordinance re-establishing the old rates.
| A statement is appended showing
net earnings of ss5,1S1.5S from Sept
| l, 1912 to March I, 1915 a net deficit
in earnings for 1917 and the first two
months in 1918 Of s5,205.27, or a ne,
total earning Of S5997631 for the
whole period since il began business
here. The value of the gas property is
placed at not less than $4,000, that
depreciation runs from to 5 per cent
per annun. and that a reasonable net
return on the investment is per cent
per annum. II fixes not Jess than 9
per cent as a reasonable just return
during the war period, and sets out
that money can not be obtained for
investment in the property now for
less than s per cent.
It fixes s1o943 as the average annual
earnings OF the property from which
it deducts 1850 for depreciation, and
fixes it's net return of s3,443 per annum
been in business.
Mention is made Of the application
OF the company for new rate OF s1.4o
per / ,0CN cubic feet from April /, 1918.
| II is alleged that old rate re-estab-
| lished is for less than the cost OF pro-
duction Of gas, that the rate is con-
ascatory and was llagally fixed, with
cut investigation Of the accounts and
earnings Of the company.
A restraining order is sought to en-
| join the city from enforcing the ordi-
nance until final determination Of the
case by the court.
No mention is made OF the electric
! Ugh: ordinance IL the bill of com
| plant, which evidently is aimed only