The Birmingham age-herald., 1911-12-02

department in the disposal of the Red Cross seals, as practically the entire Unite States is to participate in the sale of the Christmas seals during the ap- preaching holidays.
 Pratt City and Nineteenth street in Bir- mingham and intermediate points.
 This was in May of the present year Now in November following, the Board of Commissioners have obtained for the people Of Birmingham not only the cent fare requested. except as to Wylam but. except as to Vivian, universal trans fers throughout Greater Birmingham, thus securing cent fares and transfers good over more than 100 miles of the com pany's traekage in the Birmingham dis trict.
 What Contract Means
 ''The net results of these contracts may be stated as follows:
 q. Citizens of Ensey and intervening territory on both north and south lines. are given straight cent fare with full transfer privileges.
 ''2. Citizens of every other section Of the city are given free access to the Ems ley territory on payment of cent fare and transfer.
 ''3. The cent fare limit on the North Bessener line has been extended to Mar tin station, and all citizens residing there or in intervening territory have all fare privileges enjoyed by other citizens. "A. The company claims that it had an inviolable contract permitting the charge ! of 10 cent fare, which the commission induced them to modify as outlined thus securing for that section a reduction in cost of transportation an amount which the company claims will be approximately $7O,0O0 per annum.
 "5. This adjustment of fare limits makes the system of cent fare zones uniform and equitable throughout the system of lines radiating from the center of Bir- mingham, removing thereby all dIscrim- nation in the distance carried for each passenger on a 5 cent fare. Lighting COntrcat
 '1. The citizens of every section of Bir- mingham will secure a reduction of rates for electric lights which will effect a sav- ing in their monthly bills of from 15 per cent to 90 per cent. (See statement of MT. Martin J. Lide, consulting engineer of Birmingham, published in Age-Herald Sunday, November H. 1911)
 "2. The rates named for lighting ser vice are much lower than those in effect in the following southern cities: Chatta- nooga, Memphis and Nashville, Tenn. Atlanta, Ga, Richmond, Va, Dallas and l Houston, Tex. New Orleans, La. Con- | firmed by Lide.)
 "3 The rates named are lower than | would have been fixed arbitrarily by the commission
 | A. The saving in the electric light bills of the citizens under the new rates will according to the statement of the com pany. amount to approximately $S0000 per annum
 "5 The contract expressly provides that the city can grant franchises to coupet- ing companies.
 ''6. The contract expressly reserves to the city the right to furnish current to the citizens from it's own plant competing plants now or hereafter established. "7 The new contract fixes a price of $62.50 per arc to the city, which is SI50 lower than the old contract, which had about three and one-half years to run, ef- fecting an annual saving to the city of ap- proximately $5000.
 ''S. The contract expressly reserves to the city the right to do all of it's own street lighting from it's own plant or plants at any time it so elects.
 "9. The contract reduces the rate from BPS to $24 per annum on Tungsten lamps used for alley and park lighting.
 '10. The proposition to reduce the light ing rates to both city and citizens came voluntarily from the company, without | suggestion rom the cOmnllSS1On. the IT, ducements to the company being the in- crease in number of customers and i'm munity from rate changes for reasonable term of years.
 Public Sentiment
 "As to the reductions in both cases, I should say in general way that the com pany was influenced largely by public sentiment as well as by the prospect of
 increased business, and of stability in the basis of it's revenues. In the matter of furnishing lights to private customers, the company had no contract at all with the city fixing rates, and therefore the com pany could not reasonably expect an ade- quate return on it's investment on the basis of the reduced rates, without some sort of security against legal interference for reasonable period of time.
 we all know that this is an ordinary business requirement in matters of this sort. It is nothing but matter of right and common sense for the company to ask reasonable period of time in which to earn proper return on it's investment, free from legal interference, on the basis of the reduced rates, or on the basis of any rates fixed by law; and it is partly for that reason that the constitution of the state permits franchises for period of 20 years to be granted to such com panies.
 For instance, quite recently, the board granted to a natural gas company q 30 year franchise to use the streets of the city in constructing and operating a nat ural gas plant in the city of Birmingham, the gas to he brought into this city from the gas fields of Fayette county. and be- fore that the city council of the city of Birmingham had granted to the Provi- dence Oil and Gas company a 30 year franchise for the same purpose.
 Regarding Tidewater
 "The Birmingham, Bessemer and Ensley Railroad company, known as the "Tide- water company has given notice that they will apply for lighting franchise from the city to furnish lights to the city and citizens of Birmingham Would The Tidewater company, in view of the in- vestment necessary to be made to furnish lights to the city and citizens of Birming- ham, be willing to accept that franchise, the city fixing it's rates for any short term of years, such as one year, or two years, or even five years?
 'Is it not foregone conclusion that they will most certainly want not less than 10 years in which to operate on the oasis of the rates which will be fixed by the city? How else can they sell their securities? How else can they put their plant into operation? The case is different from that of an ordinary business con- oern, run by private capital.
 "The government does not undertake to fix the prices charged by the merchant or the manufacturer These take their chances of success dependent on the con dition of the market, and the demand for their goods, but where the prices charged
 .re fixed by the government, as we have fixed the price to be charged by the Di'-