The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-03-08
MAYOR RIDDLES
ARGUMENT MADE
BY CAR LAWYER
Paine Takes Issue Squarely
With Miles and Asserts He
Win Garry Peoples Fight to
the Limit.

Mayor Paine Monday took issue
sauarely with l., r, Miles, Of counsel
for the Memphis Street Railway COM
pany on statements which Mr.. Miles
made In published statement in
morning newspaper.
tween the business Of the street rail-
way. which has a complete monopoly,
and private business. Is rtddled by
the mayor,
Mr.. Miles. in his newspaper com-
mmicatiOn, hints that the wholesale
grocery company with which Mayor
Paine is connected made more than q
~ per cent revenue last year.
In reply. and In futher stating his
unalterable opposition To a seven cent
fare on the street cars in Memphis, the
mayor says:
81 have too much respect for Mr..
Miles ability to believe that he serious
ly considers the cases as parallel but
il he does seriously contend that sueh
be the case. | would say TO him that
while consider the rate base and rate
OF return fixed by the state public utlli :
ty commission as absurd, this attempt
OF Mr.. Miles TO compare a private mer-
camille concern with the Memphis street
Railway company Is ridiculous, and Mr.,
Miles well knows that II Is. ! am sat
isfied the public so regards II, but Tor
Mr., Miles benefit | am stating Few
| wellknown facts
Wide Differences.
''1he mercantile company with which
! am connected has asked for and re.
ceived no franchise from the city Ol
| Memphis emitting IL to appropriate GER
| tain streets In the city to its own use
but the Memphis Street Railway com
! pauy has such a franchise obtained III
| 1905 and running for 80 years,
my company has no monopoly upoT
the food supply OF Memphis as thsrs
are II other concerns In Memphis en-
| gagged In the same line Of business
| no person In Memphis Is compelled Il
| buy the goods sold by my company
| On the contrary the business my com
| pany obtains comes as a result OF meet,
Ing active competition and rendering I
| service to its customers. The people o.
Memphis, however, are eompel!ed q
ride on the street cars operated by tn
| Memphis Street Railway company, be
cause the Memphis street Railway com
.pany has a monopoly OF passenger traf
I fiesin the city Of Memphis, This monop
oily Is due to the franchise, which IN
Memphis street Railway company holds
and also to the fact that the Memphl
Street Railway company was lnstru
mental largely In having Jamufei
through the legislature In 1915 an &C
which temporarily prohibited the IIt
neys from operating upon the streets o
Memphis.
Upon the question Of the base of re
turn or investment as between my com
pany and that Of the Memphis Stree
Railway company, ! would suggest 4
Mr.. Miles that II my company be al
lowed return upon dead mules, for 2
years past, upon Wornout trucks AM
upon all manner OF wornout propert,
TO the amount OF $t,752,4t3, and " Il b.
allowed a return upon So called devel
opment costs In the sum Of $7si,57s
| which represents so-cailed deficit Il
earnings Of the present street Car Com
pany and its predecessors, then an
willing to accept rate OF return o.
that basis. This superseded propert
in the way OF dead mules and wornou
street cars may just as well be applie
TO my company, and they be allowed {
any return thereon, as to the Mempbi
Street Railway company. My compan
Is engaged in business of more or les
hazard carrying a stock of merchandis
! (Cnotinued on Page l6, Column ~