The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-11-07
DISPUTE OVER
POWER HOUSES
Street Car Company Declines
to Pay $4,000 Rental
to Receivers.
MONTHLY REPORT FILED

Whether or not the order of Judge
f. T. Sanford entered July 20, 1918.
covered the equipment of the Sew
enth street and Ridgedale power sta
tions of the Chattanooga Railway
and Light company Is again a sub
ject for dispute between John Gra-
ham and Percy Warner, receivers,
and officials of the Chattanooga Rail-
way and Light company.
In their monthly report as receiv-
ers. filed In federal court Thursday
afternoon, they state that pursuant
to a decree of Judge Sanford, an ap-
praisement was made of the power
house properties, including buildings,
improvements and equipment, and 1t
had been determined that $1S0,000
was reasonable valuation for same,
and that 1t had been proposed to rent
to the defendant company, under the
terms of the decree entered in July,
the two power houses for $4,000 a
year, which is 10 per cent. of the
appraised valuation.
Upon submitting this proposal to
BIC. Edgar, vice. president and prin-
cipal executive officer of the Chatta-
nooga Railway and Light company,
the receivers state that he declined
to pay the rental, stating that while
he did not disagree with the receiv-
ers concerning the valuation or the
reasonableness of the rent based
thereon, he did not understand that
the order OF the court covered the
equipment of the two power stations,
but only the land and buildings and
that the question which was covered
by the order would have to be
"threshed OUT by the lawyers before
the company would be willing to pay
any rental to the receivers upon the
property.
The receivers in their report asked
instructions of the court as to what
steps, III any, to take to enforce the
payment of the proper rental and the
performance of the decree on the
part of the defendant company.
Extent Of Order.
1t was generally understood that
Judge Sanford's order extended the
receivership to include the property
lying on Seventh street, which is now
a power house and formerly occupied
as the power or station company OF
the Chattanooga Railways company
but now occupied by the LOCAL street
railway company. This also applied
1t was understood by the receivers,
to the Ridgedale power house.
The receivers We're given permk9
sion by the order, 1t is stated, TO
make an appraisement of the proper
ties and either, as in their discretion
seemed best, to operate the same or
lease them to the Chattanooga Rail-
way and Light company. upon such
terms as might be for the benefit of
the trust committed in their care and
pending further orders of the court.
In the same. report it was stated
that the total revenue or earnings OF
the railway company for the month
of October amounted to $77,802.27
Operating expenses totaled $63,475.12,
leaving net revenue of $14,327.75,
which does not include salary of re-
ceivers or expense of the upkeep OF
the road.
For the month s2116739, or 81 per
cent. of the gross receipts, was spent
for maintenance of ways and struc-
lures and equipment. Maintenance
of ways and structures received $11,-
07031 of this amount and equipment
received $10,097.08.