The Birmingham age-herald., 1912-02-12
LIGHT ORDINANCE
 ID PASS TOMORROW Differs Materially From the
 Referendum Contract THE MINIMUM LOWER When the Matter Is Disposed of the Commission Plans to Take Up the Subject of Water Rates
THE MINIMUM LOWER

at ehe present. tune pY the BlfmlnBndm
 Railway, Light and Power company for electric current will be adopted tomorrow | morning by the city commission. The ordinance was introduced last Tuesday by Judge A. O. Lane, but on account of the request of the Birmingham Railway, Light and Power company was held over a week.
 The main difference between the ordi- nance and the 10 year lighting contract, which was defeated in the referendum election January %, is that a reduction in the present rates will be brought about without the formality of q contract. The minimum charge under the ordinance will be 80 cents, whereas under the contract 1t was $1.O5.
 It is understood that the Birmingham Railway, Light and Power company will not attempt to establish in the courts that the referendum election was uncon- stitutional, and that as a result the orig
 nal contract is still effective.
 The adoption of the ordinance tomorrow will conclude one of the most interesting controversies which has occurred since the inauguration of the commission form of government regime. As soon as it is definitely established that the Birming- ham Railway, Light and Power com pany will accept without controversy the terms of the ordinance. the city will be- gin actively on it's plans to bring about a reduction of the domestic rates charged by the Birmingham Waterworks company for water, and another movement against the same company, the object of which will be the collection of tho license tax which mp to the present time has been successfully resisted by the company, will be made.
 The matter of the reduction of the do- nestle charges for water has been in the hands of the city attorney for some time. and 1t is expected that he will be ready to render an opinion and take legal ae- ton in the immediate future. The con- troversy hangs on the terms of 90 year contract. adopted during the administra- ton of Mayor Frank V. Evans. The company declares that under the contract the rates for water used by the people of Birmingham cannot be changed during the life of the contract. Tt is believed that the city attorney will express an opinion to tho commissioners that the city has the right to reduce water rates whenever in the opinion of the city such action is deemed necessary. Thereupon, the city will rearrange the scale, and the company will no doubt carry the conten- ton to the courts.
 Of little less importance to the citizens and of more to the city itself, Is the prep aration of the commissioners to collect the license taxes from the public utility cor poration, the payment of which Is denied on account of the provision of section 36 r, of the revenue bill adopted by the legislature at it's last session. Under this section the amount paid by the corpora tlons for intangible taxes must be applied to the license taxes demanded by munich palitIes. The city of Birmingham intends raising the point in the courts that this section of the bill is unconstitutional. If the courts hold otherwise the city of Bir- mingham will endeavor to have an extra ordinary session of the legislature called for the purpose of correcting what is de- clared to be an error.
 Judge Lane, in preparation for this sec ond step, is preparing to write to the heads of the municipal governments of every city in Alabama. The publicity already given to this plan has brought favorable comment from many sections of the state. Mayor Fred Wall of Athens has stated that he will fight with Judge Lane should CT to shoulder, and Mayor Banks of At ta1la has given an expression of similar intention.
 Judge Lane contends that as a result of section 36 r of the revenue bill the city of Birmingham in four years will be de- prived of revenue of s250,000.