The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-01-14
System Cost $1,000, ,o22.

v
Eliminating overhead charges and cost
OF financing and the other sums al
lowed in the above appraisal, Mr.. Har-
ris In supplement report gave the
actual net physical value of the prop
critics as S7,900,0e2, based on the orig
nal cost,
The entire case can now be summed
up in few basic propositions. The
state commission viii decide as to
what the properties should be valued
at 1t seems reasonable TO suppose
that the figures agreed upon BY all
three experts. $9,S06,042, may be fixed
az the actual value,
The state commission must next de-
eide what constitutes a reasonable and
fair return upon the actual amount Of
money shown to be invested in the
property. The amount OF outstanding
bonds and the amount of stock will not
figure In this.
1t Is an almost invariable rule fixed
By state utility commissions In all the
states that 7 per cent has been fixed
as such reasonable return on street
railway properties. No rule has been
established in Tennessee as the state
commission was created only last year.
The actual value Of the property being
decided. and the per cent OF return
fixed, the question 81 the amount OF
fare 70 be charged will then be the next
Iu'HN'pi w Nolilt uts
Shp-a Stop Also Issue.
Walter p. Armstrong. city attorney.
will be prepared to show from the re-
ceVers reports of operation and oper-
atng costs, that the company would
nave been able to pay all expenses and
make reasonable return upon the
actual value of the property during the
past six months at scent fare.
Ross w. Harris, the city's expert, will
accompany Mr., Armstrong and Commits.
soner Horace johnson to Nashville
Wednesday night.
Mr Armstrong will have a number of
affidavits from men in Memphis who
are in touch with the growth OF the pop.
ulation, showing that he volume Of
business done by the street railway
during 1920 should be much greater than
during the last six months Of 1919
During those six months. IL was re-
Gently stated by T, II. Tutwiler, presi-
dent and one OF the receivers Of the
street railway company. that the pas
senger traffic handled was the greatest
in the history OF the company. The
statement was made In an open meeting
Of the city commission during dis
cussioR of the skip-stop ordinance.
which Judge Mccall. OF the federal
ground that regulation OF the street car
service now rests entirely with the state
commission at Nashville
The city attorney will take up the
skip-stop plan also after the question
Of street car farce has been urged and
will ask the state commission to grant
the petition filed by he city In Decem-
Der to have the plan abolished.
He will show that It saves a small
sum In cost OF coal to the company But
il Inconvenience the public. does not
provide good service which the company
guarantees in Its franchise contract
does not, in fact. appreciably improve
the speed of the cars, but in fact della ~
patrons IN reaching their destinations
in many instances. owing 10 their hav-
ing to walk farther TO reach a car stop
and 1t is not In effect In any other Ten
nessee city and has been abandoned
in other cities in which II was en-
forced solely as A war measure.