High wages can persist in any occupation as long as potential workers can’t or won’t enter it to drive down the wage. At the time the city of Memphis took over the old Memphis Street Railway Company in 1960, it was already empowered by an old state law, Chapter 26 of the Tennessee Private Acts, to create the Memphis Transit Authority and to purchase or contract for a transit system which would be under the jurisdiction, control, and management of the Memphis Transit Authority. 63 The statute continues to spell out the powers of the Memphis Transit Authority if it chooses to contract with a private company to manage the transit system, directed and supervised by the Authority in all of its phases including the setting of rates, fares, and routes.î Memphis circumvented the statutory provisions by drafting contractual agreements with everybody concerned that gave the new Memphis Transit Management Company maximum independence from the Memphis Transit Authority.

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