The Birmingham age-herald., 1912-03-01
New Rates Will Go Into Effect This Morning, But
 Under Protest
A. H. FORD'S LETTER
 TO COMMISSIONERS
Maintains That Referendum Election Was Invalid and That Prior Contract Made Is Still
 Effective

Contrary to the expectations of the city commission the Birmingham Rail way. Light and power company will fight through the courts the validity of the referendum election of January 29, the issue of which was the 10 year lighting contract.
 The company, in a letter to the com- mission yesterday afternoon, represents
 that it will put into effect the newly adopted ordinance of the city, but that it will do so under protest.
 The statement is plainly made that on or after April 1 the entire contro-
 versy will be thrown upon the courts.
 The statement follows;
 President Ford's Letter "February 29, 1912
 ITO the Honorable Board of Commission CTS, City of Birmingham:
 "Gentlemen-On November 9, 19i1 the
 Birmingham Railway, Light and Power company entered into contract with the city of Birmingham, relating to the prices to be charged by the company for light ing the highways and public places of the city, and for supplying the inhabitants of the city with electric current for light ing known as the lighting contract, which contract, by it's terms, becomes operative on April l. 1912, and effective for period | of 10 years.
 "Since that date a so-called referendum | or the lighting contract has been held which resulted adversely to the lighting | contract, and your honorable body has ordained an ordinance undertaking to an- nul the same. Your honorable body has also recently ordained an ordinance known as the lighting rates ordinance, undertake | ing to regulate the rates chargeable by | all corporations, firms or persons furnish l ing or supplying to others for compensa- tion electric current for ncandescent | lighting service or other incidental uses, which ordinance, by It's terms, becomes | effective from and after February %, l9l2 "The company contends that the election | held under the referendum was without | authority of law, and therefore void, and | that the ordinance subsequently ordained | by your honorable body in pursuance Of the election undertaking to annul the lighting contract was also without author ity of law, impairs the obligations of the lighting contract, and is therefore also void, and also that the lighting rated ordinance ordained by your honorable body Is also without authority of law, ! impairs the obligations of the lighting con-
 tract and is therefore also void. Period of One Month "In view of the fact, however, that | the lighting contract will not become op- erative until April l, 1912, thus leaving a period of one month before the company | can, as it is advised by counsel, properly
 present all the questions thus involved to | the courts for consideration and deter
 imitation, and in order to avoid, as far as possible, any and all inconvenience to the citizens and to the city, the company will temporarily, but under protest, submit to the maximum rates provided by the light ing rates ordinance from and after Febru- ary %. 1912, until such time as the col.rta may determine and settle the questions involved. but this is done under protest
 and without waiving on the part of the company any of it's rights under the light ing contract, and notice is hereby given to your honorable body that upon April 1, 1912, or soon thereafter as practicable this company will commence such legal proceedings as 1t may be advised will be necessary or proper to have determined by the courts the said questions and to protect and enforce it's rights under the lighting contract.
 And the company will also, for the reasons above mentioned invoice the lighting done by it for the city of the highways and public places of the city by arc lamps and Tungsten lamps from and after April l, 1912 at the rates pro- vided by the lighting contract, and will so continue unless and until 1t be judi cially determined that the lighting con tract is void in which event 1t will thereafter insist upon the performance of the contract between the company and the city respecting arc lights bearing date of September l. 1910. and which by the terms of the lighting contract was an- nulled from and after April 1. 1912. and the company reserves the right to bill tho city. in the event the lighting contract is judicially determined to be void. for the difference between the prices of arc lamps established by the contract bearing date of September 1. 1910, and the lighting con- tract for the period from April 1, 1912 un- til the judicial determination of the ques- ton. Respectfully submitted,
 "BIRMINGHAM RAILWAY, LIGHT
 AND POWER CO,
 By A. II. Ford, President"