Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-08-07

show that even at rate of $2.25 per
cubic foot, asked by the company,
there would still be loss-figurinx a
10 per cent return on the investment.
This 10 per cent return, however.
does not mean 10 per cena profit,
but includes 7 per cent interest on
borrowed capital, leaving a 3 per cent
manufacturers profit. This small
margin is about sufficient, it is said,
to maintain the plant and keep it
from going back.
Arguments Arc Heated.
The arguments Friday night were
earnest but not tending to belliser-
ancy. The committee was eager to
get at facts and questioned tho COM
panuy's representative closely on all
matters preached. The replies were
said to be fair and usually convin-
cling.
The conference had the result, at
least, Of the committee and the COM
pany understanding just what sort Of
investigation would be made and
what positions the company would
assume in urging an increase.
The committee and the public gen.
orally, perhaps, would be willing, on
the basis of the investigation SO far
as 1T has progressed, to allow O
small increase In rates II assured OF
proper service.
Company DlsoIaims Responaibillty.
1t has been explained by the COM
pany's representative in conferences
with the mayor, members Of the city
council and citizens, that in many
instances where complaints had been
made Of poor service. the company
must disclaim responsibility.
The fault In many instances. II
was said, was to be found on per-
sonal property. It was said that
should the company tear out the
service and install new and modern
service at it's own expense, the re-
suit might, in the long run, prove
economical to the company.
Many small services are from
three fourth inch mains laid by
Jones & Hovey years ago, and such
services can not be expected to be
good at all times. In many cases the
difficulty lies In the homes Of the
consumers, where stoves and fittings
are not suited to best service. In
making this statement OF conditions
the representative Of the company
was frank in saying he had no desire
to imply that stoves should be pur-
chased Of the gas company to get the
best service. In fact, he said, many
gas companies have been guilty OF
| selling stoves which were not the
best. and undoubtedly hardware deal
ers gould furnish stoves as good. o,
possibly better, than gas companies
10 Franchise Violated.
In the opinion OF one member Of
the citizens committee the company
may have violated its franchise in
furnishing oil gas to the consumers
This has been done. it has been ex-
planned, because OF the inability to
get gas coal.
The marked increase in the price
OF oil used in the production OF gas
Is one Of the big Items asking an in
crease In rates, it was said. The
Iowa Railway and Light Company
has purchased oil under contract, foI
It's Cedar Rapids plant, It ! cents
but the contract made for term Of
years, has expired. Efforts have
been made to obtain q new contract
at o cents but have failed. On the
open market the company finds that
1t must pay 20 cents or more for the
oil. This Is but one Of many items
1t is said. where the increased cost
makes 1t imperative for the COM
pany to ask an increase in rates.