The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-01-20

| judge Mccall, immeuiAtelN Attef tne
petition was filed, received an answer
| from the Memphis Street Railway com
pany, in which ii admitted all the facts
| and liabilities ss alleged by the plain
| tiff exceIE liability OF 100000 to the
| Bank of Commerce and Trust company
The street railway company refused
to acknowledge this. saying II had filed
suit against the bank for that amount
which Is being tried in chancery court
other Suits Enjoined.
Immediately after reading this peti-
| tion, Judge Mccall appointed 4, II, Tut
| wier. president OF the local company,
ceiyers. lie fixed their bond at $4,000
each which they made. They took
charge OF the company Immediately,
Judge Mccall also granted petition
OF the pls sintiff for an Injunction against
small creditors filing cults against roll
ing stock. bank aCconnfs or any other
property Of the company. tie ordered
Messrs. Elgtn and Tutwiler to present
to him an inventory OF the property OF
the street car corpany within go days,
The street car company In ita answer
supported the petition OF the American
Cities company for a receivership. The
receivers were intrusted with absolute
care and management of the cumphTy,
The bill OF the American cities COM
nany was filed by Capt Gs ~ Fit9huEh,
| attorney, over the Eignak.sss lset
Renoist, presadent. zsed 3At u. iAhlail'
fendaflt G3fhpany IL Indebted 10 them
In the sum OF $40. sos. .B for service rem
iered IN connection with engineering
maintaining and operating, which IL
long past due.
Much Due on Wages.
Other debts alleged in the petition
We're promissory notes OF $3.50, 900, due
In October, 1918, which we're unpaid
a sum OF 100000 due sundry parties on
promissory notes under date Of Nov. l.
1917, with George X. Reilly as trustee
This note was due Nov. /, 1913, and
remains unpaid the petition alleges.
Bonds, aggregating S2l4,O0O, OF The
consolidated mortgage issue, due July
1, 1905, which have never been paid
are also alleged In the petition as In
debte9ness.
street railway company between Aug
| and Oct. |, 1918. which have not beer
paid, according to the allegation of tn,
petition, aggregate $4l,000, state anC
county taxes remaining unpaid at pres
ent equal $4,000, the petitioner alleges
Along with the petition of the Amer
lean Cities company the Memphis
Street Railway company filed an an,
swer, admitting all liabilities excep
the $4,000 against the Bank OF Com
merce and Trust company Suit fol
this amount il being tried In chancerl
court Monday The local company alsC
waives all claims against process ant
asks for receiver.
| Operation OF the company on war
cost basis with an income based on pre-
war revenues, is assigned by the Amer
lean Cities company as the reason fol
the ineapacity Of the local company Il
meet It's debts.
"There are now due and payable
from the defendant" reads the peti
tion of the complainant company, I
total OF $3.50, 900, but the defendant i
and will be, totally unable to meet
within reasonable time, If at all, sal,
demands out OF It's current resources,
Danger of suits of levy and various
other Kinds against the street car com
/ many by small creditors was voiced II
the petition, which asked that all in
junction be granted preventing this
Judge Mccall Immediately complied re
straining all creditors from suing o
. levylng against the property OF tn
company.
The present financial distress Is du
to the tremendous increase In cost 0
| all materials supplies and labor, not
withstanding public authorities nav
declined TO grant the right to charg
an Increased fare, the petition states,
The petitioner hopes In due time
however, for decrease in the cost o
service or an increase in the fare, o
: both, either of which the defendant be
lieyes would enable II eventually t
t meet all obligations.