The age-herald., 1898-09-29
DID NOT HURT GAS PLANT

An opportunity is now open for the build- ing of gas plant in Birmingham to supply this source of illumination at reasonable prices and at the same time have a profit able investment.
 It is thought that the city council will again request proposals at the next meet ing, since the failure of the London-Haas combination.
 If it is possible at the next meeting of the council the special committee that was appointed on January to receive proposals fer lighting the city will instruct the com- mittee to renew the invitation.
 This committee consists of Messrs. Wa4- ter Moore, J. J. Altman and R. II. Kerr. It was the committee through which the proposal of Messrs. London and Haas was received by the city council
 If the city council authorizes the commit- tee to again become active the field will be open to any parties who desire to establish a plant and furnish the citizens of Birming- ham with cheaper gas.
 What procedure will be instituted against the old company is not known.
 At a meeting of the council held on De- cember 20 the special gas investigation com- mittee rendered a report revoklng the con- tract fo the old company and calling on the city attorney to render an opinion on what steps should be taken against it at the next meeting of the council. This opinion has never been rendered, unless it was done in an executive session of the council.
 Defends City's Credit
 Mayor Evans does not believe that the credit of the city had anything to do with the collapse of the plansA of the new gas company. He contends that this could not affect a private institution.
 ''I am glad it was not Mir. London of the once proposed new gas company" said the mayor, who offered the suggestion that the failure of his company to~materialize was due to the poor credit of the city of Birmingham, but l cannot see how that could possibly affect private corporation, the object of which was to establish plant to furnish lights to the citizens of Birming- ham without any contract with the city for supplying public lights.
 Tt is well known to the people of Bir- mingham, he continued that the city is now and has been for the past two or three years living under a compromise with it's creditors-the bondholders, who were re- ceiving in cash, very promptly, little less than one-half of the interest due, and have agreed to wait until the end of five years for the balance. If on account of this con- dition of affairs the once proposed new gas company has failed to float it's securities, it would be reasonable to suppose that if,1t ,ei al ri. ;,,,Jf vidual in Birmingham seeking financial aid from abroad would suffer in consequence, but find that all of our corporate and indi- vidual enterprises are progressing satisfac- torily, and find no difficulty in securing f. nancial encouragement.
 Therefore" he proceeded q hardly think it fair to charge the failure of the company to proceed with the enterprise to the inability of the city of Birmingham to pay her entire fixed charges"
 The City's Indebtedness
 Speaking of the indebtedness of the city proper, the mayor said that it was well known that the provisions of the Birming- ham amendment to the state constitution cannot go into effect until the fall of 1S99
 My estimate,' he said, lis that by the enhancement of valuation the city caused by improvements of this year the increased revenue under the amendment will be about $75,OOO Our interest amounts to $95, 500 per annum. We can easily pay the $2O 00O diff ference out of the present income and also pay the current expenses of the city. This will satisfy the bondholders and each year thereafter the income from taxation will increase by the natural rapid growth of the city, so that I can see nothing very gloomy in the future outlook of Birming- ham. Of course we are at present und 1T pressure, but there is light ahead-light on the financial horizon and from innumer- able gas jets."
 Boards Probable Action
 In reply to a question as to what action the board would take now that the time granted Messrs. Haas and London had ex- pired the mayor said: "The proposition of Messrs. Haas and London and the grant, ing of franchise to them was the result of request aby a special committee com- posed of Messrs. Moore, Altman and Kerr, for proposals for furnishing the citizens of Birmingham with cheaper gas. These gentlemen having failed to comply with the terms of their contract or franchise, and the time having expired in which they were to begin work, I presume the committee will again ask for proposals for | lighting the city, yet I do not know and | will not know until the board is officially | notified of the expiration of the time grant, | ed Messrs. London and Haas, which l sup pose will be done at the next meeting"