The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1913-11-01
CRISIS REACHED IN
NEGd0TrlnrTEN0NS FOR
KELLEY FRANCHISE
The Financial Backers Make
Counter Proposition
to City
TO BE CONSIDERED
AT MEETING TODAY
Think Percentage of Gross Revenue
Which Goes to City Is Too Large.
Object to Viaduct and
Subway

Negotiations between the city of Bir-
mngham and the Kelley street railway
interests. which have been going on inter-
mittently for the past year or more, have
| reached a crisis.
The financial hackers of the Kelleys
have come to Birmingham. have inspected
the Kelley proposition and have made
+, sion upon which, it is said. the Kelley
street railway project will stand or fall
| within the next few days
At a conference yesterday afternoon be-
tween the city commission and Henri C.
Morand and George T. Ladd, manager
and engineering expert, respectively, of
the Fl. p. Taylor bond company of New
York city, reports are that the latter two
| gentlemen put before the commissioners
counter proposition which deals with
several changes In the Kelley franchise
and upon which as a basis it is reported,
| the bankers will agree to finance the
| project. 1t is stated that the changes are.
Proposed Changes
| (a) Abandon the Twenty-third street
viaduct project, spend a large sum, prob
| ably about $4,000, on improving the pres
ent Twenty-first street viaduct, and cross
the railroad tracks there.
| OBJ Instead of the proposed subway at
Avenue r and Seventh street, Construct a
! grade crossing with the understanding
that at any time the city could compel
the company to construct viaduct or a
subway.
| (c) Change the percentage of gross re-
ceipts of the company which to be paid
the city from B. and per cent to 2,
| 21a and per cent.
| Id An indicated willingness to pay the
city $4,000 in cash Immediately instead of
, giving notes to that amount when work
| is begun.
As far as can be learned the members
of the commission have as yet refused to
| commit themselves for or against any OF
| the desired changes. Reliable informa-
ton is to the effect that If the city ac-
cepts the changes, the representatives of
the Taylor company have stated that
within 10 days they will be ready to begin
work
/
mission at O'Clock this afternoon. the
question will be decided. No meeting of
the commission was held yesterday, the
regular Friday meeting being delayed
until today in order that the Kelley mat
ter would be ready for action.
Unless some favorable action is taken
at the meeting today. Monday. November
/, the Kelley street railway franchise will
be forfeited, according to one of its pro-
visions. The forfeiture time has twice
been extended since the original franchise
was granted. SO far the Keleys have
paid into the city treasury in behalf of
the franchise $4,000. and 1t is said have
spent 5000 or $4,000 in other negotiations
in connection with the proposed street
| railway.
Decline to Discuss Matter
Members of the commission yesterday
declined to be quoted on any phase of the
proposition.
1t Is stated that the change from
the proposed Twenty-third street via
duct to the Twenty first street viaduct
is demanded by the Taylor company
representatives. but that they are not
so firm on the other provisions. 1t is
understood that they object to invest
ing 100000 in the Twenty third street
viaduct on the grounds of 1t being poor
business as the city reserves the right
to compel them to destroy the struc-
ture at the end of 10 years and build
a permanent one.
The change at Avenue f and Seventh
street is asked for on substantially
the same grounds, it being stated that
the Avenue F line is a development
project and does not warrant the ex-
penditure of such a sum of money at
the present time. The proposed sub
way would have cost about $4,000.
The change from 3. and per cent
gross receipts going to the city to ,.
2h and 3 is based. 1t is said. upon
similar franchises in other cities. 1t
Is stated that other municipalities have
street railways operating under similar
franchises but the percentage is not
as large as that asked in the original
Kelley franchise.
Principals on both sides of the case
declined to discuss the situation in
any way yesterday. 1t is probable an
other conference will be held this
morning. The matter will be settled at
the meeting this afternoon.
Mr.. Morand and Mr.. Ladd expect to
leave for New York this evening. Pro
viding the city commission acts ia
vorably on their requests. it is stated,
that they will return to New York
place the proposition in It's new form
before the directors OF the company
and that everything viii be settled
within 10 days. 1t is further stated
that there is little if any doubt bur
what tlfe full recommendations of Mr..
Morand and Mr.. Ladd will be indorsed
by the directors.