The Birmingham age-herald., 1909-02-16

to cities, and the second 1t has been paid the state and county. The pay ments made for account of taxes and l licenses total s155,519.53 for 1908 as compared to s1275674S in 1907, an in | crease of 21.90 per cent. or 7.2 per cent | of gross income as against 5.7 per cent l in 1907. The increases in interest and 1 taxes total s75,831.63, making our final surplus $206,3 ,31O15, or $S6s9.s5 less than | the preferred dividend, to pay which fl 1 was necessary to draw from previous | surplus earned.
 Capital Expenditures. ] During the year certain expenditures | for account of property and construc- ton were necessary even in the face of l the depressed conditions existing ard notwithstanding the fact that We were making every effort to save expendi- l lures, account of the difficulty in disposing of our bonds to pay for the same. The outlay in brief, was as fol- l lows:
 For general accounts, 164s6.27; in | the railway department in which Is in | cluded the cost of four cars ordered in | 1907 s70,0S9.31; electric department, | $136 ,635.55; gas department. s2s.61s.15: 1 steam heat department, $S570.30; for l street improvements, $3199.9S. Total. 1 $25S, ,59951.
 l | extensions to our electric and gas lines | but on account of our inability to secure i new money. the policy was adopted of re- ! quiring customers to provide the actual cash outlay we reimbursing them with l service during a stated period of time. i During the latter part of the year, how ever. the plan was adopted of making ex- 1 tensions wherever enough business could | be secured to make the investment prof l itable.
 As regards future extensions and im- 1 provements, we are confronted with | condition in our mortgage which makes such improvements dependable upon the profitable operation of the company. The clause referred to requires that l the net earnings of the company shall | exceed the interest payments DO per cent 1 for the preceding F months before an ad-
 ditional issue of bonds can be made. This sis a wise provision intended for
 the protection of the bondholders and
 a guarantee of the company's libality to l meet interest charges on future issues of it's bonds. On the showing made in 1908 the company failed to meet this pro- 1 vision of the mortgage in the sum of $43,- | S46 94.
 quires the company to show an expendi- ture of $1 900 for construction and im- l provements for each $1000,000 of bonds | certified by the trustee. the balance of 1 $250,oOO to be paid from surplus.
 Both of these conditions affecting ex- | tensions and improvements of the com . panys property force a showing of prof | itable operation before such extensions and improvements can be considered.
 Publicity. l During the year we have been con- 1 ducting through the medium of the daily press and our own "Illuminator' a wig
 orous publicity campaign, setting forth | in the articles pertinent facts relating | to our company and its operations in the | endeavor to improve public sentiment to- | ward us, making the public better &C., iquainted with the problems we have to 1 deal with in serving them with transpor- tation, light, heat and power: teaching | them how to avoid accidents telling them | how to read meters, how to economize | in the use of gas stoves, and dealing with other subjects frankly and truthfuily, which we hope will, in time, as the cam paign progresses, bring the public in closer and more cordial relations with the com pany
 Organization.
 Death deprived us during 1908 of the services of MT. B. F. Roden as a di- rector he presiding at the last annual | meeting
 In conclusion l might say that the or ganization of our company, as at present constituted. and the results being obtained | in the several departments, very sat | isfactory to me. I believe that every employe is working for the best interests of the company and that all branches of the business are running in perfect unison and being operated at a high point of efficiency. I have great expectations as to the results we will obtain in our opera | tions in the future and hope to be able to submit a more favorable report for the year 1909.
 Your attention is called to the treas urer's report attached hereto for your con- | sideration. Respectfully submitted, 1 A. II. FORD, President. ERATING RESULTS