The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-06-03
STREET RAILWAY
MAKING MONEY ON
PRESENT BASIS
People Paid Six Hundred
Thousand NiCkeIS Every
Year to Furnish Fund for
American Cities Company.
AM. CITIES co, DEAD.

@s ~ = AA0 W. OSG6s
NEW ORLEANS. June 3. (spll--No
reorganization OF the American cities
company is contemplated as a result In
the rise of the price OF stock, accord
ing TO J. w. Newman, Of |. Newman
q Son, chairman Of the Companies
board OF directors, who has returned
New York
Mr.. Newman emphasized his state
Wide of the mark.
we nav Ken over controI,U he
said' land are bending our efforts now
70 bringing about Improvement In the
properties. We are deVotIna ourselves
Wholly to this, and no reorganization ls
For many years the people Of Mem
pms have been contributing coo, 900
mckels each year TO the Golfers of the
American Cities company, the holding
company for the Memphis street rail-
way, 80
That fact was brought out among
other interesting items during the
cross-examination of T. II. Tutwller.
president of the local street railway
Nashville - ~
Mr.. Tutwiler said that it had ueen
Tor years one OF the fixed expenses
OF his company to pay one and one
half per cent of the gross revenues to
the American Cities company in con-
sideration for engineering and account
ing advice and assistance in buying
supplies.
On an average gross income of
$2,000,000 year, that would be at
the rate of 100000 a year In other
words, 100000 people had to take one
the city, to provide the nickels which
made up this annual contribution OF
$50. 900.
The American Cities company was
reorganized a number of months. ago.
1t has controlled for years not pfiy
the Memphis street railway system, aiul
systems in New Orleans, Fknoxy lin, Mi
mingham, Littld Rock and other SUNtt'
erp cities.
li1ian4 "a Attv War \. .nrg
w - Y X " N Z & y ~ NJ = "a.
IA IA JlpI Q lisalon arEwn fr0fhl MI
il6sN statemAnts III the {witnesi
stAAd waa that he helleved the com
Ispel4H ehpul9 he7 akowed tos. ehNfge 4. !
fars M Il a AZ eMt ira cent ~
iis ssysss tlisit Htsnissh !
recoup ltseI Tor decreased revenues
during the war years. This was usec
by II, j. Livingston, city attorney. u
his argument against the proposed in
creased fares on the ground that ever,
person IN the United states was re
CURED 70 assume personal sacriiicet
during the war; that thousands OF cor
poratlons ana business nrms ala
smaller volume OF business, with con
sequent reouctlon IN revenues, ana thal
the memphis street railway should no,
go peIore the state commission WIN .
claim for exemption from such losses
Inc case was not conGiuoeo at Nash,
vile last week, Dut VII be resumed
Thursday, When u, +. Niles, OF counse
Tor the street Taiiway ana lts receivers
Will complete ms argument
Besides arguing that no emergency
now exists, under which the street raa
way can be entitled to charge increased
fares, MT. Livingston presented th'
/ company own flnancial statements
and the statements or the receivers U
the United States district court, as t.
operating revenues last year and 10
the first four months OF the presen
year.
These figures, he claimed. proved con
| clusively that the operating revenues
| this year, up to May l. have been l
per cent greater than for the simila
| period during 1918, and that for Apri
| the increase was 13 per cent from
| April 1918. He asserted that by th
| showing OF the receivers themselves
| the company's probable revenues 70
| the balance of the year. If the traffi