The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-06-13
EMERGENCY CLAIM
REAL ISSUE IN
CAR FARE CASE
CONTINUED From First Pase.)

was paid. He also said that small divi-
bends were paid on the common stock
in 1912. 1918 and 1914. That stock, is
sued by the new company, the present
owners, was shown to have been all
water-that is, stock issued by the
owners and given TO themselves, What
that original SIS, 900, 900 Of bonds repre-
scented was not brought out in the
hearing, but It was presumably based
upon the physical valuation Of the prop
erty illus the franchise value. At any
rate, the present owners, according TO
Mr.. Tutwiler's testimony, paid t2,bOO,-
900 In real money and assumed $5,UvU,-
900 bonds, making $4,000 as the cost
Of the plant to the present Q
OF that a large part represented water
TO the former owners, for the plant
physically at that time was worth moth
ing like 81 1900. 900. It Is probable h a
81 1000, 900 would have covered for more
than the physical value OF the property.
} Tss SssaT TSiu;.u tHfmi Is mT what nt the N Sssn
mans paid Billings for the right that
Billings had acquired to make money
by charging Memphians 5 cents to ride.
Now the Newmans claim that on ac-
count of changed conditions they can
not make money on what they paid for
make none on what the plant actually
cost.
They come in now and want to raise
rates 20 to Is per cent 80 as to make
money not only on the actual capital in
vested in theN plant, but also on the
gift Of themselves to themselves and
above the $4,000 annual gift to the
American Cities company for advice"
n Assistance"
Here are a few items from the mass
Of facts brought out during Mr.. Tut
Only Half Rebuilt.
Although 1t has been generally sup
posed that the entire system has been
rebuilt since the present company
bought it, il was testified to By Mr..
cent of the old track has been replaced.
However, there were but SIS miles OF
trackage when the present company &C.
quired the property, and there are about
rs miles now showing the building
Of about 40 miles of new track. =,
1t was shown that the company paid
annual dividends on the preferred stock
every year from 1905 up to 1915. The
dividend for the first year under the
neW owners, 1908. was only two and
one-half per cent, or So, 500. Each sue
ceeding year the regular five per cent
81. 800, 900 Of preferred stock.
In 1912 a small dividend, $25, 900, was
declared on the common stock, or ]
per cent. In 1913 the COMMON stock
dividend was a 2 per cent dividend, OF
$50, 600, and the mex year, 1914. besides
the regular 8 per cent on the preferred
stock, a dividend of 8 per cent on the
common. $4,000, was paid. The next
year, 1916, when the jitneys were op'
Grating, I'M. Tutwiler testified that nc
dividends were paid and that the com
pany figured a loss of about 5000, 00t
In business due to the jitneys.
OF course, during all those gears anc
right UP to 1918. the 5 per cent annua
interest on the $10,0 900, 900 OF bonds wal
also being paid.
There was a lengthy argument owe
the service which the company gave
during 1918 and at the present time
the service now, according to Mr.. Tut
wiler's figures, being SO per cent o
what would be considered a perfec
service. 1t was admitted by both side'
that the service has been greatly i'm
proved under the receivership.