The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-12-01
CITY WILL FACE
INJUNCTION FIGHT
ON UTILITIES TAX
Counsel for Street Railway
Receivers Says Payment on
Full Value Will NeCessitate
Increase in Fare.

The city will face an injunction
fight in the courts when it under
takes to collect taxes on the public
utilities operating in Memphis.
Should the city win its fight against
the injunction 1t is practically GER
tain that 1t win again be called upon
TO fight an appeal for a further in
crease in street car fare before the
public utilities commission,
According to Lovink p, Miles,
counsel for the receivers of the Mem
phis Street Railway company, re-
ceivers for the Memphis Gas 4 Elec-
trio company and the Rock Island
Memphis Terminal Railway COM
pany and the Choetaw, Oklahoma &
Gulf Railway company, these COM
panies will pay the city taxes based
upon two thirds of the assessed val
nation and then seek to enjoin the
cry from collecting. the remainder
upon N%e~pe1$ cent valuation.
The city is urging it's claim for
taxes on the basis of 100 per cent
value. Mr.. Miles will contest this
view on the ground that remaining
property was assessed by the city
at about two-thirds of actual value,
and that for the utilities companies
to pay on full value would force
them to pay taxes on one-thlru
higher basis than other taxpayers,
In explaining his position OF ask
ing for taxes on only two-thlrds OF
the valuation of the companies IN
voived, while insisting upon their
earning on higher rate, Mr. Miles
stated that the tax assessment Is re-
quired by status to be based on the
actual cash value of property on the
10th day of January of the year in
which the tax is assessed. He agrees
that the replacement value OF the
street railway property was ac-
knowledged last spring to have been
5000, 900, but does not believe any
one would have been willing to pay
any figure near $10.000,000 for the
property las a cash consideration.
Pay County Full Value.
Under the proposed basis of pay
ment adopted by the street railway
receivers the company would pay
taxes on about S6,966,U00. or a total
of about $4,000. The total ASSESS
nent of the street railway company
in the city is $10,449.000. Taxes on
the basis of 100 per cent, contended
as correct by the city, would amount
to about 100000.
Mr.. Miles called attention to the
fact that during the three months
test period of scent fare last year. Mr..
Tutwiler, one of the receivers for the
company, carried reserves for taxes
on the basis of about $l15,00 a year.
At the end OF the test period his tig-
ures showed a deficit and 1t was In
tirnated that the figures had been
padded in order to secure an increase
in fare. It is significant, In Mr.
Miles opinion, that the taxes which
the company proposes to pay without
question exceed the amount esti-
mated by Mfr. TutwiIer by nerly s2b,-
600. This amount sought by the city
exceeds Mr.. Tatwilers estimate by
about $4,000. If this amount Is col
lected by the city, Mr.. Miles states
an eight fare will be absolutely
necessary.
No effort was made by any OF the
companies to reduce the assessment
of the commission. with the excep-
ton Of them. C. e st. L. r. r. Co.
which is seeking to enioin the state
Locally, all companies will pay taxes
on full valuation to the state and
county, because they assert that they
are not Disseminated against all
other property was assessed on the
same basis of 100 per cent.