The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-01-15
STREET CAR CASE
REOPENED BEFORE
UTILITIES BOARD
City Attorney Armstrong
Makes Fight for Gent
Fare and Abolition of Skip
aston Custom. =

NASHVILLE, Tenn, Jan -. tSplD-
Tho hearing on the Memphis street rail-
way case was resumed today before the
Tennessee public utilities commission.
The hearing is TO decide the rate Of
fare to be charged by the street rail-
way company OF Memphis, and the case
Is OF more than ordinary interest as II
probably viii set a precedent for fixing
the street car fares in other Tennessee
cities.
The company. through l.. P. Miles, Of
counsel, and T. n. Tutwiler. president
and one OF the receivers. announced
that II asks permission to charge a rate
Of faro which viii produce IA net revenue
OF s per cent on an investment OF APP
proximatcly $l2. 900, 900,
The city Of Memphis. represented by
the city attorney, ". +. Armstrong, his
assistant, +. b. Klewer, and Horace
Johnson, commissioner OF public uttli-
ties. will insist that the company, upon
the appraisal made last year upon the
order Of the state commission, Is not
entitled to a valuation of 81, OOO, 900,
but that the actual net physical valua-
ton Is $1,000, 900.
This is the figure arrived at by Ross
w. Harris. of Madison, Wis, an ex-
rert OF nationwide reputation, VINO
represented the city in the appraisal
That sum represents the net valuation,
less cost of development and certain
other overhead charges,
Including these items the net Valua-
ton arrived at and agreed upon by Mr.,
Harris and the other two appraisers
was only So 800, O42.
The other appraisers are Albert 5.
Richey, Of New York. who represented
the state commission, and ], H., Per
kins, OF Birmingham, representing the
street railway interests.
The company's contention as to n
- a. - = = Ann nnM L. AanA1 FNAnn n
supplemental report by Mr., Perkins,
their own expert. who included in his
valuation more than 81, 200, 600, as the
cost/of what engineers now term super
coded property, which Is the cost Of
mules and old mule-drawh cars, old
cars which were operated on a dummy
line. and other similar property, Junked
before the present generation OF Mem
rhis street ear patrons was born.
Figures from the receivers reports OF
operation for the past year will be
presented by Mr. Armstrong, as show
ing that the company IA be operated
profltably upon a scent fare basis.
The gross 3 go 9pneaT s rb revenue dnsrat 'Ss1
expenses were listed by the company at
81 ,65l ,2l2.
The net operating income was given
as 1852, ass.
The first five and a half months of
the year the charge was D cents. roI
the remainder of the year the scent
temporary fare was In effect.
No audit of the company's books was
ordered or made and, therefore, there
Is no data before the state commission
to show whether or not the expenses
charged TO operation are legitimate or
not. But even accepting every item as
a necessary expense, the net revenue Is
shown. Mr.. Armstrong contends, to be
sufficient to produce n revenue Of Z per
cent upon the actual valuation arrived
at by the three experts. He will also
show by affidavits from officials in
Memphis familiar with the growth of
population that the anticipated business
for this year will be much larger thar
the business done In 1919.
Mr.. Harris has prepared estimates
bearing upon that point.
The hearing will probably continue for
the remainder OF the week.