The Birmingham age-herald., 1912-01-09
CITY PRREEPFARRESFO I REP PARREESFOR
 WATER RATEF|GHT
Boyd's Opinion May Not Be
 Ready Today
THE POINTS INVOLVED
If City Decides Ii Has Legal Right to Change Rates the Company Will Probably Seek an
 Injunction

1uletlS ine cilN or BlfninsHdin. III the interest of consumers of water Is pre- pairing to wage a strenuous legal warfare against the Birmingham waterworlSs company.
 It was announced yesterday afternoon that the report of the city attorney will not be ready by the time of the commits sion meeting this morning But from bits of news that can be gathered, 1t is generally believed that as a result Of his decision, the big legal battle for tho reduction of the cost of water will be pre- ciptated.
 The city attorney is endeavoring to find out whether an adverse decision on de- murrers rendered E years ago, preeludes the encouragement at the present time of the scale of rates charged by the company for the consumption of water, and wheth- CT or not 1t is true that a clause in the contract between the company and the city whereby the provision in reference to fire plugs shall continue in force 30 years, can by any interpretation be construed as meaning that the rates of 2S years ago shall endure another seven years.
 While no expression from anyone in au- thority could be obtained yesterday aft ernoon, it is reasonably certain that, as a result of his investigation, the city at torney will report to the commission that that body has a Regal right to rearrange the scale of rates which the Birmingham Waterworks company has been applying to the people of Birmingham for g years Following that probable report and act ing on the Exum resolution, the city will proceed to arrange the new scale Of rates, sthe power to do this having been con- ferred by the legislature four years ago. It is expected that then the waterworks company will institute an injunction.
 The history of the litigation is one of deep interest and importance and many pretty points of laws are involved, The contract between the company and the city was drawn up about 2S years ago, and has seven more years to run. The contract provides that it's life in reference to plugs to be used by the city shall be continued for 50 years. The city takes the position that inasmuch as no specific reference is made to the number of years which the provisions concerning domestic rates shall last, it was the meaning of the parties to the contract that rear engagement of the scale of prices could be had at any time either party thought such unnecessary. The company, naturally considers the entire contract one to be respected throughout period of 30 years.
 Thirteen years ago, in the administra- tion of Mayor Evans, fight similar to the one pending at the present time was tactually precipitated. on the city's re- arranging the rates of the company the company took legal action. and on demur- rers Chancellor Cobb ruled against the city. The controversy shortly afterwards was dropped. The company holds that inasmuch as the city was defeated IS years ago there Is no legal recourse to be had at the present time. The city, nat urally, considers the matter from the other viewpoint. An interesting fact in connection with the litigation of 13 years ago is that Chancellor Cobb, Alex Lon don, Robert J. Lowe, J. w. Altman, R. H. Kerr and w. c. Garrett, all of whom were prominently connected with the case, are dead.
 The clty autnOflteS are unanimously of the opinion that the rates charged the people of Birmingham for water are ex- orbtant, are higher, in fact. than the rates charged the people of other cities by other companies. The city authori- Jies, furthermore, are determined that such & state of affairs shall not exist another seven years if it is possible for them to prevent. They hold that the con- tract in reference to the use of plugs by the city is valid in every respect, but that those provisions in reference to the consumption of water by individual fam lilies of the city, while not void, are at least voidable.
 It is anticipated that the city will re- arrange the scale of rates in the imme- diate future, and that penalties will be enacted for the purpose of forcing the company to observe the rates. It is ex- pected, furthermore, that immediately afterwards the company will present the contract for interpretation by the courts of the land.