The Birmingham age-herald., 1912-01-25


 reduction? And in order for the citizens tC come out even in the same period, then rates would have to be reduced below 1 rates prevailing anywhere in the entire country, so far as we are informed. Is l there any such reasonable prospect of such a reduction as to justify us in re- fusing to save them so large a sum right now?
 "Confusion and misunderstanding have resulted from the technical terms in which the rate Is defined, but unfortunately technical terms are necessary in dealing with technical subjects.
 Rates Are Plain
 But there are a few things about the rate which are unmstakably plain and certain
 T. The minimum monthly bill is reduced to $1,05 net.
 '2. The primary rate is reduced 10.s cents net to 9.5 cents net.
 8. Under the new contract there is a secondary rate applicable, after you have used your lights on an average of % hours, which Is fixed at 6.7 cents net.
 A. You pay only for current actually consumed unless you use less than $l.O5 worth The go hours use" and connect ed load" have no bearing, except in de- teimining whether your rate be 91a cents net or 6.7 cents net. Regardless of the number of lamps installed and regardless of every other condition. you never pay for what you do not consume, unless your bill amounts to less than $1 .05, in which event you pay s1.O5 and no more.
 There is absolutely no restraint on competition, except in the case of the city's own lighting of it's streets and pub lie places, which amounts to only about about ' per cent of the electric current consumed in Birmingham It is, therefore, insufficient in itself to hinder or prevent competition. particularly when you con- sider the rate. For this, the city has been handsomely paid in a substantial present saving by the cancellation of the old con- tract, and we need the money, and we need it now. As the private consumer, the city is free to grant franchise to any competitor, and every citizen is free to patronize whom he will. Here we quote the provision of the contract itself:
 Tt is further understood and agreed that nothing in this contract shall be con- strued to prevent the city from itself fur nishing electricity to the inhabitants of the city from the light plant now owned and operated by the city, or any other lighting plant hereafter established or &C., quired and operated by the city; and fur ther, that nothing in this contract shall be construed to prevent the city from granting a franchise to any person or cor HOidllbl TUT illt tbllbdtl Vl tht 4JuSiiitoo of supplying electricity to the inhabitants of the city either or both, on such terms and conditions and at such rates as the city may see fit
 Moreover, the city can from it's own plant, if it sees fit furnish not only it's own lights but sell current to the pub- lie. this right being reserved in express terms.
 Tedious Litigation But finally 1t is said that the rates should have been regulated by ordinance rather than fixed by contract. Isn't it true-universally true-that you can buy any commodity anywhere under con- tract for a fixed term cheaper than you can buy it at retail as your wants re- quire, and the longer the term the cheaper the price?
 ''The law gives the cities of Alabama the right to determine such matters either by contract or by regulation. We are the servants of the law and we exercise power conferred upon us by law. Can an officer of the law be ever justly accused of acting contrary to public policy in exercising a power expressly committed to him by the law?
 I've have reason to believe that the company would not have submitted to these rates if attempted by regulation, without litigation-long, tedious and ex-
 
 to be regulated by the legislature nearly five years ago. and some of the railroads fought The cases are still in court. The fight has cost the state nearly S100.000.
 "Recently both special masters appoint ed by the court reported their findings as favorable to the railroads, and so the railroads have drawn first blood And why, perhaps. would not the company sub init to the same rates by regulation? Be cause fixed one day, they may be changed the next, and there is the absence of that stability which business requires.
 'And by what standard could the req condolences of the rates fixed in the new contract as matter of regulation be es- tablished? They are cheaper than At lanta, and Atlanta has water power; they are cheaper than Knoxville, and Knoxville has cheaper coal than Bir- mingham; cheaper than New Orleans, Memphis. Nashville, Dallas, Tex, and Richmond. Va,
 "On the other hand, Birmingham cov- ers a wider area than any city of it's size in the south, including as it does. nearly 50 square miles. It therefore costs more to transmit current, in the greater amount of wires and poles required. and there Is a greater loss of current in trans hitting it over long distances. for current is necessarily dissipated in transmission. And if we come to regulate. we must act as judges between the company and the people, and we must then do exact jus tice to both parties.
 "rhen why should we resort to the extremities of the alw. with attendant expense and delay, in order to accomplish by regulation nothing more. possibly not as much, as we did accomplish at once and by contract? We would have only wielded the big stick when club was wholly unnecessary.
 "As a body, according to our view, we will ignominiously fail, if we simply stir up snakes. and keep the community in constant state of agitation. If we cannot settle the real big business aues- tions, as they arise, in a business way, and In fairness to everybody concerned, then we will not have served your best interests We cannot settle them exactly as we wish or exactly as you wish for we do not all agree. and give and take is the rule in life. but we hope and are making an earnest effort so to perform our duties as to aid in making this a united and progressive community, build ing up steadily and along broad lines. in stead of consuming our activities in bick- erings. iealousies and petty politics.
 Tn the approaching election you are going to review our conduct as your representatives, it being charged that our conduct was wrong and should be set aside. You cannot review it fairly, unless you consider, when you vote, just what we considered when we voted-that is. both questions together and in their entirety.
 "CULPEPPER EXUM. President. JAMES wEATHERLY. "Commissioner." --s------