The Birmingham age-herald., 1910-11-18
GREGG GIVES POSITION
 OF COUNCIL COMMITTEE
President Dewberry Says Recent Action Is But Extension of old Franchises Under Which Half Million Has
 Already Been Spent

committee to make 8 very careful and exhaustive study of the franchise, and
 until I do so I will not be in a position to say just whether I can approve 1t or not. l will compare it in every detail to the old franchises which the company held under the various mur lcipalities, and will try to reach a decision to the best interest of the city of Birmingham.
 'I think that any deserving parties who really attempt to connect Birmingham with tidewater should be aided, if pos
 sible, but I am entirely opposed to grant,
 ing a free perpetual franchise for the simple privilege of running street cars
 over the streets of Birmingham. It will
 be five or six days before I can give any
 definite answer
 Practically the same position Is taken
 by the average citizen. They refuse to discuss the matter until they have in
 vestgated it further, but most men ap-
 preached have the greatest confidence
 in the judgment of the Mayor In such
 matters.
 Alderman M. J. Gregg, when asked yes
 terday why he favored the franchise,
 said:
 Gregg Explains situation
 This privilege had been granted the company four or five years ago. They spent no little money and time in the
 beginning and went to work in good faith, under the terms of the contract, to build the road However, hard fi- nancial conditions cane up, as we all know, and the company was unable to proceed. From time to time they have sought an extension of the franchise and 1t has been granted
 They have convinced me that they are now positively ready to let the con tract, and build the road to tidewater at a great expense.
 "It Is too late now to come in and rub out all the work that has been done by materially changing the terms of the | franchise. If this were simply the po- ginning, I would favor making num- Der of changes, but after all the work
 that has been done. we could do nothing
 but grant the franchise.
 Ut is absolutely an extension. With only a slight change of name, to suit conditions, this Is In reality the same company. The franchises are exactly similar to those previously issued, and think the city would be making a grave
 mistake to hold back one minute.
 "As for the argument that the laying of double tracks in the subway would
 mean practically the abandonment of the
 subway to the street car company, the
 exact opposite would occur. The car line would regulate the traffic in the
 subway and remove the present dangers
 of daredevil speeding. The cars going
 through would cause the automobiles to
 slow down, and would be protection.
 TomIinson Favors Councils Action
 John w. Tomlinson, attorney for the
 rd of Trade said 'T heartily
 agree with the majority of the Board
 of Aldermen that this extension should he granted. W hen people try to help the Birmingham district every encourag- nent should be granted them. This out
 let to tidewater has been the desire of
 Birmingham for years, and now that it
 seems almost in reach 1t would be fool ish to put stumbling blocks In the way. Dewberry Discusses Plans In discussing his franchise, President J. M. Dewberry of the Tidewater com pany said last night:
 Without entering into controversy or questioning the motives or opinions Of ar yone we would like to state why we have asked the city to grant us re- newal of our perpetual franchises; .1 We are chartered as and propose to be an electric interurban railroad. .2 The constitution of the state of Alabama provides that cities may grant perpetual franchises to electric interur- ban railroads.
 a The several municipalities now com prising the city of Birmingham did, each. during the years of 1906 and 1907, grant us perpetual franchises and renewed them in 1909, so that they will all ex- rire December 31, 1910.
 Already Spent over $5oo,OOo A. Our proposed line extends from Gadsden through Birmingham to Tusca- loosa, there to connect with line of steamboats and barges on the river to Mobile. Relying upon our ability to finance the entire line and upon the char acter and extent of our franchises we have accurately surveyed the entire line, have invested over $500,000 in steamboats, railroad surveys, terminals and in the purchase and improvement of the Tus- caloosa Belt railway, which we now own and operate.
 ''5. Because of the panic and the inter- ference of interests desiring to see our line not built we have been unable, un- til now, to secure sufficient funds to build the division through Birmingham. We are ready now to build this division. The funds are guaranteed by Morris
 Bros, bankers, of Philadelphia, together with another banking house in New York. and the contract for the construc- tion has been let to large contracting company provided that the necessary time in which to build is granted. Limitations of Constitution ''6 No new railroad can build under a 30-year franchise. No one will buy It's stock or bonds unless guaranteed by some other road having perpetual rights. The 30-year limitation placed upon street railways and other public utilities tex cept railroads) has been placed In our state constitutions at the instance of those companies already enjoying per petual rights and for the purpose Of pre- venting any independent company from entering their field and interfering with their monopoly.
 Having perpetual rights on the main streets of a city a street railway can afford to accept and use 30-year fran chises for their own branch lines and extensions. Thus the monopoly is per fected and protected, and that, too, by our state constitution. What stu pendous fraud
 Title Vested in City ..7. The title to the Fifth avenue line vests in the city perpetually, and this was done in order to unbottle Birming- ham and to perpetually break the street railway monopoly existing here. Thas Fifth avenue line will cost us about $200.000 to construct, and becomes a val uable asset to the city not only as an
 anti-monopoly agent, but as an invitation