The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-02-04
TUtWiLer Says
City Has Failed
To Investigate
To The News Scimitar:

Rates. referring TO the Improperly OF
the board Of commissioners Of the city
conceding higher rates without eX-
haustiye investigation being made, said:
The. case is almost parallel to that
Of the Memphis Street Railway compa-
nys application, in which 1t will be re-
membered the war labor board recon-
mended the granting Of a higher rate
Of fare to take care Of the increased
cost of operation due to the wage in
crease.
THE city commission felt no obliga-
ton to grant the increase, and very
properly, without a full and complete
revelation Of tie company's affairs,
which It was never able to secure"
The following language is that to
which l take exception: THE city COM
mission felt no obligation to grant the
Increase and very properly, without a
full and complete revelation of the COM
pany's affairs, which it was never
able to secure."
The statement quoted would Indicate
that the inability Of the commission to
secure "a full and complete revelation
OF the company's affairs was due to
the attitude of the company, when, in
tact, 1t has been due solely and exclu-
sively to the failure and refusal Of the
city commission to avail itself OF OPP
p%ortunity abundantly offered.
II l am correct in this statement, !
reel sure you will do the company an
the receivers Of its property the Justice
OF saying so, and giving the matter the
same publicity and prominence which
you accorded to the editorial above re-
ferTed to.
The petition of the company for a g.
cent fare was filed Feb. rs, 1913, and it
purported to contain very full informa-
ton concerning the history OF the COM
pany,, its, outstanding stock, its out
standing bonds, other Indebtedness and
Its requirements, and also a somewhat
comprehensive history # the property
OF the company and its development
during many years. But lest the petit
ton might be considered as a special
pleading" and therefore not to be ac-
cepted without question, on Feb. q,
1918, following the submission of the
petltIon, the company addressed a letter
to Hon. c. T. Kelly, commissioners OF
public utilities, grounds and buildings,
In which it stated:
referring to the petition of the
Memphis Street Railway company for
light to charge 6-cent fare with trans
ters filed with the board Of commits
sioners OF the city on the 26th instant,
this company begs to advise definitely,
as II Is assumed, of course, would be
understood, that its books, records and
Papers OF all kinds will be open for the
inspection, investigation and study Of
the board OF commissioners, yourself or
any officially designated committee, in
connection with a~scertaining the his
tory, present condition and needs Of
the company; Every assistance to this
END Will be given ch%eerfully by the Off
GERS n employees of the company" .
On FEB. 2S, 1918, Commissioner Kelly
acknowledged receipt of the letter Of
or which he said:
Nothing could be more gratifying to
me, ana l am sure to the public, than
tnat you should in your letter of the
1Itn instant invite a thorough ~investi-
alton OF your affairs, either by the
city commission or some one officially
designated by them.
IN response I beg to inform you that
II Is my intention to recommend to the
mayor and the commissioners the nam
ing 81 a committee OF gentlemen capa-
pie OF passing on the merits or dement's
OF your petition which asked for an
increase Of the rate of car fare from 5
cents to 6 cents"
And on the same date Commissioner
hely addressed another letter to the
company. in which he said:
i VIII add that while said committee
would act without compensation to
themselves, they should be empowered
20 procure, II needed, the services of an
who would assist them in
getting the needed facts on all points
touching this Investigation
Following the suggestion OF Commits
sioner Kelly, the company addressed
nm a letter on March |, 1918, in which
the following commitment was made:
Replying to your letter Of the 28th
instant. In which you suggest that this
company commit itself to payment Of
the expense of an accountant to aid the
proposed committee In investigating
and ascertaining facts pertinent to the
petition for a 6-cent fare, beg to adj
wise that this company will be pleased
TO assume such expense, the same to be
limited to a reasonable amount for SER
vices performed. In this connection,
however, we think 1t should be under
stood that the accountant selected
should be one thoroughly familiar with
experienced in street railway ac-
counting"
Later the board Of commissioners ap-
pointed a committee Of five citizens to
Investigate the merits or dement's Of
the petition, and In addressing a letter
to the gentlemen selected, said:
MI. Tutwiler Is anxious and willing
to render my assistance possible to en-
able your committee to arrive at a just
determination, even to the extent Of
paying for the services of an auditor
under your own supervision"
Later and prior 20 April 3. nj sub
sequent to the restoration of Mr.. Leo
Goodman to the office of public utili-
ties, grounds n buildings, Mr.. C. r.
Shannon, public accountant of this city,
| WdH SCiOCtOu ny INC DOdEu Ol COIlInlS-
sioners as an auditor for and on behalf
OF the city to examine the company's
books for the citizens committee to Sc
cure a full and complete revelation Of
the company's affairs" and in a letter
Of April g. 1918, addressed to Mr.. Leo
Goodman, I stated:
II understand that the committee has
selected Mr.. Shannon, of this city, to
make the audit. The written PROPOSE
ton of Mr.. Shannon, which was read at
our conference, proposes a charge Of
SIS per day for principal and $3.50 per
day for assistants. Mr.. Shannon stated
that the total cost could not, in ad-
vance, be fixed. but 1t should not ex-
coed 1900. While this estimate seems
high to me, the company hereby agrees
that this work shall proceed in accord
ance with Mr.. Shannon's proposition;
audit as contained in letter addressed
to Mr., Kelly, your predecessor, under
date of March l, 1918"
From Feb. rs, 1918, to the present
time the company and receivers In
turn have insisted that the right to
charge a higher fare should be granted.
and have not only from time to. time
published facts in connection with the
history OF the company, but have con-
tlnuously petitioned the board Of com
m%issioners to investigate the history
and all affairs of the company, and
have offered to pay the expenses Of an
audit OF the books of the company to
be conducted by the auditors selected
by the board Of commissioners. How
ever no steps have been taken by the
board of commissioners to secure "a
full and complete revelation OF the COM
pany's affairs which | believe would
disclose a right to an increased fare.
1t occurs to me that an investigation,
which the company formerly, and the
receivers now invite, should be de-
manded by the press and public.
Yours very truly,
~ TT n ygryHyTT IND nn1z!1.-4