The Birmingham age-herald., 1913-01-03
Commission Proposes to Ex-
act Percentage of Gross
Receipts for 30 Years
TO BE BROUGHT UP
AGAIN ON TUESDAY
Robert Jemison, Jr., Claims Kelly
Company Can Tie Up Avenue f
Six Months at Cost OF
Only $1,000

For two hours yesterday afternoon the
proposed Kelly franchise was discussed
before the city commission, and was final
~ passed again until Tuesday next. Dur
ing that time City Attorney Romano
Boyd is 10 draw up a new ordinance as
the old one is so badly patched with new
proposals as to be almost unrecognizable.
II appeared at one time yesterday that
Commissioners Exum and Weatherly had
given a death blow to the franchise when
they voted down Judge Lane on propo-
sition for the company to pay to the city
: per cent, Pa per cent and 8 per cent
on gross revenue for 30 years. as we'll as
license fee. The Kelly interests pro-
posed to pay that amount, as it was un-
derstood the road could not be financed
at higher rate. However. Mr. Exum
and Mr.. Weatherly established the prece-
dent Of requiring public utilities hereafter
to pay on gross revenue basis when the
rate was placed at per cent, per cent
and per cent. The Kelly interests as
much as declined the higher rate. making
the lowest rate as a counter proposition.
The franchise was at that juncture vir-
tually refused when Mr.. Weatherly said
he might be willing to make the rate per
cent, per cent and 8 per cent After
consultation the Kelly interests accepted
that proposal.
The matter was not settled there. for
the commissioners told the applicants that
the city must be convinced to reason
able extent that the company had finances
10 carry out the provisions of the fran
chise. The Kelly interests promised to
demonstrate that ability.
The Avenue f proposition came up for
consideration in the discussion A large
number of citizens want franchise out
that avenue for the Birmingham Railway,
Light and Power company. but that has
been given the Kelly interests, at least
tentatively. 1t was brought out by Rob-
wood cemetery owners and other property
holders. that inasmueh as the Kelly in
teIests are not to begin work for SIX
months they virtually tie up the franchise
for that length of time and only forfeit
$1,000 by not eventually complying.
1t was asserted that the tracks are not
TO be in operation for three years ac-
cording to the franchise, but the Kelly
interests said the line would be operat-
ing in strips sooner than that il the water
power developments materalized here.
Tna Avenue F property holders were rep
resented as bitterly opposed to the Kelly
interests tieing up the Avenue strip
for that length of time, and did not mince
words In discussing the matter.
The Kelly franchise as it now stands re-
auires the payment of $4,000 for the fran
chise, percentage on gross receipts for 90
years, work to start within six months
the construction of a viaduct on Twenty
third street, the construction of a SUBJ
way on Avenue F and payment for paving
as the other companies pay and other
conditions.
The application has been before the
commissioners for several months and has
been bitterly assaied by the Avenue II
properly owners, the Tdewater company
and other interests The commissioners
have Incorporated in the franchise all the
requirements made of the Birmingham
Railway, Light and Power company and
the Tidewater, besides putting other con-
ditions upon the Kelly interests.