The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-08-14
A Report That Is An Buncomb

A Report That Is Al Buncomo
Announcement is made that Judge
Cochran will reopen the case and tenn
norarily set aside the order ~ SudGe
Mccall granting an increase In street
-, fare to cents. pending further IN =
vestiEation.
We hone he will reopen the case. We
hone he will make a thorough investi-
ration Of the report Of the receivers
which shows deficit in operation.
We believe he will recognize from
even a superficial investigation that
the receivers have included in the op-
GRAFTON expenses for the months OF
April, May and June various sums that
are either exorbitant and out Of all
reason. or which should be distributed
over a long period OF time instead OF
being bulked for the purpose Of making
bad showing for the company,
The best the receivers could do was to
show a deficit Of s7,e3s.53.
An item under the head OF miscel-
laneous general expense Is S5,A2s,34. 1t
includes 5000 accrued to cover cost OF
appraisal and $500 accrued to cover
cha company's proportion OF the ex-
ransa Of the traffic survey now IN
progress.
This means that the receivers are
charging I'D their part of the cost OF
.r,rai.al at the rate Of $1,000 month
"a their part OF the traffic survey
At the rate Of $500 a month. AT this
rate the cost OF appraisal win be met
IN three years. The contention OF the
city n that the cost should be amor
ilsed over period OF at least SIX
wears and that II should never De
CHARGED at such a rate as to affect the
rate OF fare. II the receivers have
absolute control In matters OF this kind
they might as reasonably have made
Il $40, 900 a month instead Of $4,000.
The city is willing that charge OF
n 500 instead Of $4,000 should be made
for appraisal expenses and $3.50 charged
% traffic survey instead Of $500, On
these two items alone there would be
n saving OF g.. $50 for the three months
period.
The receivers seem to anticipate
large payment of taxes. Perhaps the
report, was not intended for the eyes oi
the assessor. At any rate they placed
$50. 1881 in the budget for the ac-
crual Of taxes for the three months pc
Rod Nobody but the Quill board knows
what the taxes of the company viii be.
The receivers themselves seemed to
have many doubts and qualms and
with each doubt they boosted the fig
ures. They exceeded prophesy, they
invaded the realm Of absurdity,
On this question We reproduce tho
following from the city as prepared by
Walter Armstrong the city attorney:
For the month Of April they proph-
esy that the proper amount OF taxes TO
charge against one month was NI.296.-
SIS; at the end OF May they prophesy
that the amount to charge against one
month was sl7.3l3.3s, and at the end
OF that month there was a surplus OF
about 10000 from the operations. For
some reason. at the end Of June the
receivers saw tit 10 change this pro-
phetic statement Of taxes and increase
1t to 326,1s9l7. an increase for the
~ al ~ a.
ceding months of almost 50 900.
AT the end Of April and May II was
practically conceded by everyone that
the six-cent fare was a paying propo-
sition. while the number OF passen-
gers fell off somewhat in June they did
not materially decrease and every one
assumed--certainly every official Of the
city assumed-that the month OF June
had shown the six cent fare a sue
cess and there was no intimation from
any source that this was not correct
until about two weeks ago one after
noon at a conference in the office OF
Mr.. Ross W. Harris the receivers
brought UP the question Of the increase
in wages and incidentally remarked
during that discussion that deficit
would be shown"
or course II they are determined tc
show a deficit and left to juEEle the
figures as the city attorney has init
mated, they ought TO make a suctess
OF It.
Mr.. Armstrong shows conclusively
that the operating expenses charged by
the receivers should he reduced by SO,
slO17. Contrasted with tho alleged
deficit OF $685. 80 the company has 4
surplus Of &24o3s4
What is the purpose Of the receivers
in discrediting the street railway busI,
ness under their control?
What has accrued Interest On en- al,
legged deficit prior 20 putting into -
feet sx-cent fare 20 40 with the case
Where do they get this stuHH
The street railway companies over
the country are reducing farce estah
Hshed during the war and. notwlth,
standing the disparaging account o
their stewardship, the receivers for tn,
Memphis street railway company have
made a showing that warrants no in
crease over q six-cent fare and shout,
not have It.