The Birmingham age-herald., 1912-05-14
Force Peoples Company to
 Remain in Business
FRANCHISE
QUOTED
Petitioner Claims That Under Its Terms City Commission Must Rescind Action in AL
 lowing Sale

Thompson in the case of T. A. Daven- port. a merchant at Woodlawn, who seeks to restrain the Peoples Home Tele- phone company from selling it's physical properties to the Southern Bell Telephone company. and to compel the board Of city commissioners to reseind it's action in an nulling the franchise of tke Peoples com pany and terminating it's contract with the city.
 The case was heard before Judge H. A. Sharpe of the city court about 10 days ago. who sustained the demurrers to the petition offered by Walker Percy, attor- ney for the telephone company. The complainant was given permission to amend his bill. which has been filed in the city court. The date of hearing has not been set
 Among the amendments to the bill is one making the city of Birmingham a party to the suit, the contention being that under the provisions of the original franchise granted to the Peoples Tele- phone company, no agreement could be entered into in which the franchise could be disposed of and that in such event the property of the telephone company should be forfeited to the city.
 Cite Terms of Franchise The following paragraph of the fran chise is cited
 Now, therefore, if the said Claypool or his successors or assigns shall by any agreement transfer. pool or sale of stock or by any device whatever dispose of said franchise or any interest therein to any competing company whereby the tele- phone rates should be raised or service impaired. then this franchise and all rights and privileges herein granted shall become null and void, and all poles. wires, conduits, exchanges and other ap- pliances used by said Clapool his asso- ciates and assigns. under the terms of this contract and ordinance, shall be for feited to the mayor and aldermen of Bir- mingham, as stipulated damages for fail lre to carry out and perform the agree ments herein contained
 Fhe petition recited the fact that the compla inant, T. A. Davenport, is a mer- chant, and that a number of his patrons are subscribers to the Peoples Telephone company, and that they would not pay the additional cost attached to the Bell phone service, and that he would suffer loss thereby. This. section was amended so that any other taxpayer or subscriber to the Peoples phone could become a party to the suit by paying the pro rata part of the costs of the court proceedings.
 The contention is made that the South ern Bell Telephone company is not carry ing out the existing contracts of the Peo- ples company in reference to the unex- pired term Of subscribers contracts with the Peoples company.
 The following is an extract of bond entered into by the Peoples Home Tele- phone company and the city of Birming ham for the protection of the subserib- CTS to the Peoples company. It provides the mode and method and time within which the subscriber must apply to the Southern Bell company for connection with that company covering the unex- pred term of subscribers contract with the Peoples company.
 The contention is that the obliga tions required by the bond are not being com piled with.
 Extracts From Bond
 Tho following extracts from the bond cover this part of the contention:
 "Now, If said Peoples Home Telephone company shall faithfully comply with each and all of the terms and conditions. stip- ulated in the resolution hereinaboye set out to me contained in the bond therein provided for, and if all contracts hereto fore made by the Peoples Home Telephone company shall be faithfully carried out, both with the city of Birmingham and the individual subscribers, shall be fully protected against, and indemnified and saved harmless from all loss by reason of said Peoples Home Telephone company going out of business: and If said Peoples Home Telephone company shall have all such installations as may be requested by the city of Birmingham or any sub scribor of said Peoples Home Telephone company made in reasonable time with out charge with the Southern Bell Tee- phone and Telegraph company, then this bond to be void, but otherwise the bond shall remain in full force and effect.
 '.It is understood, however, that thls bond does not obligate said Peoples Home Telephone company, after said company has gone out of business, to provide any free telephone service to the city of Bir- mingham or any telephone service to said city at reduced rates, nor Is said com pany hereby obligated to procure ,nstala- tons as herenaboVe set out, unless there unto requested within six months from the date thereof, and it Is further under. stood that said company only undertakes to secure said installation and service to said subscribers upon said subscribers en- tering into the customary contract Of the Southern Bell Telephone and Telegraph company, provided 1t is expressly under stood that said Peoples Telephone com pany will procure and provide for all its subscribers with whom it has contracts. at the option of such subscribers, simi- lar service from the Bell Telephone com pany at the rates contained in said sub scribers- contracts with said Peoples Home Telephone company until the expiration of the time of service provided for in said contracts.
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