The Birmingham age-herald., 1912-04-03
ANNUL PEOPLES
 PHONE CONTRACT Action Taken by the Com mission Yesterday BOND IS EXECUTED Company Given Permission to Retire From Business May and to
 Sell Its Physical
 Properties


 By the action of the city commissioners, taken yesterday at the regular meeting. the contract between the city of BirminS- ham and the Peoples Home Telephone company was annulled the franchises sur rendered and the company was granted permission to retire from business on May l, 1912, and to sell its physical properties No objection was made either in person or by petition to this course.
 The Peoples Home Telephone company petitioned the city commissioners at their last regular meeting asking permission to retire from business on the grounds that the operation of the company could not be conducted prohtably on it's present sched- ue of rates.
 The city employed I. E. Simpson, ex pert accountant, to audit the company's books to ascertain the correctness of the statement made by the petitioners
 Simpsons Report
 AIr. Simpson submitted his report yester- day. which verified the several statements made Judge Lane then offered a resolu- ton granting the relief asked for by the bNAfN being executed, to protect the city and the several subscribers against any loss that might arise from the Peoples Home Telephone going out of business, and to insure no further expenditure on the part of the subscribers for new installments,
 The resolution was accepted by Walker Percy and Webb w. Crawford for the company, and City Attorney Romane Boyd was instructed to draw up the bond.
 Judge Lanes resolution was as follows;
 Be il resolved by the board of com missioners of the city of Birmingham;
 That the president of this board be, and he is hereby authorized, empowered and directed to cancel the contract en- tered into between $. E. Claypool and the mayor and aldermen of Birmingham. bearing date May D, 1900, and 10 ean- eel the franchise hereunder now being enjoyed by the Peoples Home Telephone company, and that said Peoples Home Telephone company be allowed to sell and dispose of it's physical properties in the city of Birmingham, the said cancellations to become effective May 1, 1912 upon the express condition, however, that before such cancellations, said Peoples Home Telephone company shall enter into bond in the penal sum of $5oG0 with good and sufficient sureties, to be approved by the president, or acting president, Of this board, conditioned that all contracts heretofore made between Peoples Home Telephone company shall be faithfully carried out, both with the city of Bir- mingham, and with the individual sub scribers 10 the telephone service of tne Peoples Home Telephone company, and that said bond shall be made payable to the city of Birmingham for the use ol itself and of the subscribers to the sefV- lee of the said Peoples Home Telephone company, and that said bond shall also provide that in case of violation of any of the conditions of said bond, or any contract between the said Peoples Home Telephone company and the city of Bir- mingham or any individual subscriber 10 the service Of said company the said city of Birmingham, through it's board Of commissioners, or any subscriber for telephone service of said Peoples Home Telephone company, shall be authorized to sue thereon and recover damages for the breach of any contract made by said Peoples Home Telephone company with the tllN bI fD1IIillEHH bi NiAll any bi such subscribers. and also a reasonable attorneys fee in case suit be brought for such recovery, and that one recoV- cry upon said bond shall not relieve said Peoples Home Telephone company or it's sureties from further liability, and shall not preclude other suits thereon. either by the city of Birmingham or any subscriber to telephone service Of said Peoples Home Telephone company: the true intent and purpose of this resolution being that both the city of Birmingham and the said subscribers shall be fully protected against loss by reason of said Peoples Home Telephone company's going out of business, and recovery may be had upon said bond for the failure of said Peoples Home Telephone company to have installations made for the said city of Birmingham or any subscriber to the telephone service of said Peoples Home Telephone company. without charge by the Southern Bell Telephone and Tele- graph company. the true intent and pur- pose of this resolution being that said bond shall be so drawn as to fully protect said city and said subscribers against any expenditure for new installations"