The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-06-04
Gives What Terms Would be
Satisfactory 10 the
CITY
PROFIT SHARING PLAN
FAVORED BY Mr. WARD
Thinks That Whoever Gets the Fran
~hise Should Pay Well for It.
Should Not Be Given Away,
as Heretofore, He Says.

The mayor, in a letter addressed yes
terday to John L. Parker, chairman OF
the committee on railways O. the City
Council, stated what In Is Judgment
should be the terms upon which the city
should grant a franchise for the building
of new street railway, elmer by the
Birmingham Railway Light and Power
company or by the interests headed by
w. II. Woodward and e. w. Rucker.
The mayors letter was written in re-
Spouse to this communication from Alder
man Parker:
Advice Asked For.
Birmingham, June 1. 1905.
George B. Ward, Mayor, City:
Dear Sir-Referring to the two appli
cations for street railway franchises now
pending before the committee of which
L am chairman. kindly advise what you
think the city would consider a fair trade
for all parties concerned Very truly
JOHN L. PARKER,
Chairman
Here is a copy of Mayor Wards letter;
"City of Birmingham,
Executive Department, June l, 1905.
Hon. John L. Parker, Chairman, City:
Dear Sir-Your inquiry of LIST inst. re-
ceived. In reply, l wish to say:
Power company asks for a franchise on
certain streets in the northeast end of
town, subject to conditions named in gem
eral contract with the city and tracks
to be laid and completed by the time the
depot proposed to be built on Twenty
sixth street is completed 1t seems to
me this proposition should not De con-
sidered at all.
Request for option.
First, 1t is merely a request for an
option for an indefinite length of time
on very valuable property and without
any compensation. The depot may or
may not be built in ten years. With this
option hanging over the situation the city
would naturally not be offered and would
be prevented from accepting other adyan-
tageous propositions,
Second, the conditions named in gen
eral contracts which includes 800 per
block, although accepted in past years by
the council, should never again be con-
sidered as sufficient compensation.
THE city of Birmingham in future
when granting franchises should demand
and see to it that a fair per centage of
gross receipts is furnished for compensa
ton.
Furthermore, it would be wise and
proper for the board to see that any
future concessions made the Birmingham
Railway Light and Power company pro-
vide for the recovery of some of the pri-
vileges heretofore given away.
THE second proposition, viz, the appli-
cation of Rucker Woodward, ct al, or
any new application in future, should
simply be a question of price.
1T is generally acknowledged that the
presence of strong, competing street
car and light system would be a good
thing for the people.
IN granting franchises, experience and
economists have evolved the anxiom that
private corporations should receive fair,
and even liberal reward for expenditure
of skill and capital; the municipality
should obtain effective and adequate SER
vices for the people upon reasonable
terms for the use of its streets and when
all these conditions are satisfied any sur
plus should be divided between the two.
In this particular instance, where so
blocks more or less are asked for, it
seems to me that we should demand a
cash bonus of $4,000 or 10000 as a guar
antee that the road will be started, fin
ished and operated within a given term
of months and that per centage of gross
receipts should be paid to the city every
six months in lieu of all other taxes
licenses, etc. except the usual ad valorem
property tax, based on a scale something
like the following
One per cent for first fl e years
Two per cent for second five years.
Three per cent for third five years
-Four per cent for balance of life of
franchise.
Against Consolidation.
1T should be provided that no con-
solidation or joint operation with other
companies.is to be permitted without con-
sent Of the city. In event the franchise
of the company is merged or operated
by another company, all rights and privi-
leges and benefits due the city under this
franchise should be operative on the en-
tire franchise of the consolidated system,
whether such provision existed therein
before or not.
THAT at end of franchise all rights and
interest of the company in the city streets
or other privileges granted therein shall
terminate on the last day without notice.
Very truly, GEORGE b. WARD,
Mayor
Robert Jemison president of the Biz
mingham Railway, Light and Power COM
pany. when shown last night copy of
Mayor Wards letter. said:
President Jemson.
Il must refrain at this time from COM