The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-07-31
CITY STRIVES TO
DELAY BOOST IN
STREET CAR FARE
Test Period for Scents Tax
Completed in June-Arm-
strong Making Careful
Study of Report.

Present efforts OF the city admins
tration to combat an increase in street
car fares to seven cents will be con-
fined mainly to an effort TO stave off
the proposed increase until October.
The test period by which the six cent
fare was to be put on trial covered the
months Of April, May and June, but
the report for this period. filed with
the federal court by the car company
received, anticipated the increase in pay
granted car employees, as well as show
ing deficit of more than $1,000. The
city will contend that az the increase
In pay was granted only a few days
ago--in July-properiy this increase
could have no bearing on fares until
the second three months report on the
service at cost" test plan had been
submitted. This period win cover July,
August and September.
Pay increases for employees wfIl cost
the company an additional $4,000 n
year, the receivers estimated when
granting the increase. At the time,
they sttaed that higher fare would
be necessary to meet the demands OF
the men.
That the city. at the proper time, will
combat strenuously any effort to In.
crease car fares is Indicated by the fact
that Walter p Armstrong, city attor-
ney, Is making O careful study of the
three months report, which was sub
mitted to Federal Judge Mccall on
Monday, a copy being delivered at the
same time to Horace Johnson, city
commissioner OF public utilities, grounds
and buildings, This latter copy went
to Mr., Armstrong from Commissioner
johnson.
Mayor Paine also pointed out Satur-
day, as one Of the logical reasons why
any fare increase demand should be de-
iayed until after Oct !, the traffic sur
yey OF the street car property which Is
being made by Ross w. Harris, expert
employed by the city.
'The survey may not be completed
by OCT /, but 1t will be well enough
along so that we can determine with
some exactness whether or not Mr.,
Harris Is able to reroute cars and make
changes that will materially reduce the
cost of operation, II this can be done,
1T will be OF material aid in keeping
off an increase In street car fares,
No direct request for fare increase
was contained in the report to Judge
Mccall.
However. the understanding on the
three months "service Mt cost plan
was to be submitted for Judge McCall's
consideration as to whether or not six
cents was sufficient fare to provide
necessary revenue for the car company.
The item OF accrued taxes win be
dwelt upon by the city attorney, in his
opposition TO fare increase. The three
months report showed 100000 listed In
expenditures, MS ACCIutu lhAea. iHf
exact amount OF car company taxes
can not be determined until the state
equalization board makes public the
company's assessment, and the state
end county tax rates have been fixed.
Accrued taxes In the report showed
$4,000 each for the months of April
and May, but the report Is boosted TO
S26, 600 for June. The city tax rate
was known in June to have been set
at So, and this probably made the re-
oeivers feel that their former estimates
were too low.
The avowed policy of the state board
ia TO return 100 per cent assessment
on property all over the state. The pub
lie utilities commission fixed valuation
OF the street railway property at $ii,-
100000. the amount on which 1t held
the company was entitled to earn a
fu'r return, The city probably will
rnale the point that OF this amount
s2.0000o0 Is represented by no tangible
assets being under the head of
"scrapped' or superseded property.
While the report Of the receivers
showed A surplus of about SIS, 900 at the
end OF May, business evidently got so
bad with the car company during June
that this surplus was wiped out, and
a deficit OF considerably more than
$1,000 recorded for the three months
Had the original estimate of accrued
taxes for June been kept Mt the same
figures as for April and May. II is the
contention of the city that the deficit
would not have occurred.
Incidentally, the car company took
out the interest on Its swollen in
vestment before 1t turned In the report
with the deficit.