The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-12-04
Inviting Retaliation,


messed have Jared exceedingly well
during the past few years. They
have been permitted to violate their
contracts with cities; they have been
permitted to ignore the provisions
of their franchises; they have been
permitted to soak the public hard
and often. =
The public realized that the country
was passing through an unprece-
dented situation, 1t has been liberal
in dealing with the corporations, and
has shown a spirit of ca.".nindedness
that has no parallel in the attitude
of corporations toward the public.
For several months the street rail-
way company has proceeded on a
basis that made 1t perfectly evident
that it was not satisfied with the
present rate Of fare, and intended at
the first opportunity to make a de-
mand for an increase to eight cents.
There was, perhaps, some justifi-
cation in the increase of fare from
five to six cents. There was very
little opposition of any sort to the
increase from six to seven cents. But
if the street railway company pro-
poses periodically to increase its fare
it will arouse a hostility that will
find an outlet in the first opportunity
afforded the public to retaliate. This
time is not very far off. The people af-
fected are weary of having local
problems handled by a board in
Nashville, acting under authority Of
a law that has no regard for con-
tracts or franchise agreements.
Eventually the law creating the
public utilities commission and vest
ing It with authority to fix rateSand
regulate service and giving 1t other
unprecedented powers is going to be
repealed. When this law is repealed,
as it will be, the public service cor
porations will be compelled to deal
directly with municipal officials
elected by the people, and the people
will not fail to elect officials that will
carry out their views. \
AS rapidly as it is possible for
them to do it the corporations are
arousing prejudice against them
selves. They are pursuing a most
unwise policy in taking advantage
OF the public. when in all probability
they will find themselves in. a few
years compelled to deal with this
same public and expect fair treat
ment.
The railroads and other public
service corporations are resisting the
assessment levied by the state board
Of equalization. They are carrying
their cases to the federal courts in
order to evade payment as long as
possible and to escape such payment
as they possibly can.
The constitution OF Tennessee
makes specific provision for the as
sessment of property at its actual
cash value. The present assessment
law merely provides the manner in
which this provision shall be car
ried out.
The state board OF equalization did
not make arbitrary assessment of the
utilities. Their own valuations were
accepted, and valuation Of any
thing less would be illegal.
The public service corporations In
Memphis are permitted to earn re-
turn of 6F per cent on a valuation
fixed by themselves. The rate Of in
terest fixed by law in Tennessee is
6 per cent. These concerns are per-
mitted to earn 81 per cent return on
a valuation fixed by themselves, and
yet they are insisting that for the
purpose of taxati6n the assessment
should not be more than rs per cent
Of the actual cash value.
We do not advocate corporation
batting. But the public has the right
to demand that corporations shall
deal fairly and honestly with it. II
they do not show a disposition to
do so there will be no sympathy lost
upon them when the day comes when
the public has q voice in the regula-
ton Of its own affairs. The public
utility corporations caSA decide now
If they desire to have that time set
apart as a day of retribution.