The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-02-10
ELG|N FAvORS
SKIP-STOP END
IF RETURN HIGH
Says Against Eight-Cent Fare.
Declares State Utilities
Commission Alone Should
Have Say.

NASHVILLE, Tenn, Feb, 10. (Spl)-
With the fixing of the rate base by the
state public utilities commission the last
week, that body took up the hearing Of
the petition of the Memphis Street rail-
way for increased fares this morning
with a view Of determining the proper
amount to be allowed for renewals and
requirements. and the fixing Of proper
rate of return upon the Companys in
Vestment, when these have been de-
cided upon, the commission will fix the
fare rate
The railway Is represented by Y. II.
Tutwiler, receiver, and LoNiCk Z, Miles
while the city of Memphis Is represented
by City Attorney Walter 2. Armstrong
Commissioner Horace Johnson, CitS
Electrician Robert Moran Others
present are Ross w, Harris, expert
and j.. II. Perkins, Of Birmingham.
Through MIR. Miles the railway COM
pany contended today for the granting
of its petition for Il 7-cent fare, and
l-cent transfer charge as minimum
rate necessary for a proper return upon
the investment, and for renewals, re-
placements and the maintenance 81
first class service.
This plea was made on the assumption
that the skip-stop plan will be con-
tnued
City Attorney Armstrong presented
some testimony in the form Of deposi-
tons calculated to shake the plea OF the
railway company and which may result
in victory for the city Of Memphis
in holding down the fare, and possibly
bring about the abolition of the skip
| stop plan which has not proved satisfac.
tory to the people Of Memphis, and thu
ultimate return to scent fare basis
The main deposition was that OF Y
$. Elgin, one OF the receivers OF th,
railway company Mr.. Elgin testifie'
| Monday In Memphis. as shown BY tn
deposition that be was not q party I
the petition for the Scent fare increase
| stated that his position Tegardlnl
II fare question was that the state
ment OF the condition OF the compan.
should be submitted to the public utlli
ties commission fairly. and fully an,
| that the commission be the sole iudgi
as to what the proper fare should be
He declared he would not ask for al
Scent fare.
| Mr.. Miles here asserted that in vieV
OF the rate base being fixed at $li,S50,
600 instead Of the sl3,05s00 had bee
suggested by Mr.. Perkins that bot
| receivers are now OF the opinion tina
| the eight cents fare Is not necessary t
| meet the requirements which we're con
sidered reasonable at the time of tn
original petition for eight-cent far
| was made.
Mr. Elgin's deposition declared tina
he had never requested nor Joined 4
the eight cent petition, and that h
| had always tried to do the fair thin
by the company, the public and tn
creditors OF the railway,
On cross examination Mr., Miles en-
deavored to draw from the witness a
admission that he would favor an eight
cent fare If he could be shown II wa
| justified. but this was unsuccessful Il
, Mr.. Elgin Stoutly maintained that h
| did not believe such a rate just. an
has never been in favor Of 1t. II
never had thought IL necessary, h
said.
on redirect examination by MI
! Armstrong. Mr.. Elgin was asked II h
| thought seven-cent fare necessary. II
| declared he did not really know, a
he was no expert but thought tina
| ought to be settled by the publ
| utilities commission alone. Mr.. 3lgi
said he would agree to an order re
| curing a standard of service to be fur
nished by the company and that h
| would be in favor OF consulting wit
the city on this standard. thought IN
city should not be allowed to dictat
| that standard Of itself He said tn
proposed traffic survey could be agree
upon between the company and tn
| city,
| MI. ElRln Sdlu ne tNOugnt lne SKIP
stop best for the public service, bu
| that the people did not believe So II
said its abandonment would cost tn
company 100000 per year, but that h
would be willing to abolish it,
said, If just return Is made upon tn
investment.
Mr. Armstrong also presented III
citys claims in petition for an orde
| from the commission setting the fol
lowing:
That the fare be not over scve
| cents. that the receivers be allowed t
| set up out of the current earnings
renewal and replacement reserve nc
to exceed l.5s per cent upon depreClabl
property: that the rate b. not in exces
Of an amount sufficient to provid
revenue for the above purposes whic
in the citys opinion would not excee
five cents per passenger with no trans
fel charge; that the receivers be re
quired to set aside and deposit all sun
or funds which may be determined b
the commission as proper for renewal
and replacements. that the standar
of service be fixed; that after operatin
expenses have been paid renewals an
requirements provided for and retur
made upon the capital invested as a
lowed by the commission, the receiver
be required to set aside all other carr
ings in fund TO be kept intact to /
used whenever II Is deemed proper b
the commission for reduced fare.