The Birmingham age-herald., 1914-04-30
Minority Stockholders Claim It Will Depreciate Value
 of Local Stock
CLAIM THE PRICE
 IS FIXED TOO HIGH
]. K. Newman Said to Be Behind Plan to Prevent Consummation. May Mean Another Change
 of Ownership
Ny CLYDE W. ENNIS.

Ny CLYDE W. ENNIS.
 That an injunction will be applied for by minority stockholders of the Birming-
 ham Railway, Light and Power eom-
 pany to restrain the officials of the com
 pany from signing a contract with the Alabama Power company for electric en- ergy from Lock l2 is becoming apparent in Birmingham. That attorneys will be asked to further advise stockholders as to their rights in the matter is also known. Ii Is stated that local stockhold- CTS have already asked local attorneys of wide information what right they have in connection with the contract.
 There Is trouble brewing for the two companies if the contract is signed De- spite the statements of George Bullock. president of the United Gas and Electric l company, which company controls the American Cities which company in turn controls the Birmingham Railway, Light and Power company, there is extreme doubt to the legality of the proposed
 contract. It Is said to be a matter of indifference to the minority stockholders whether the charter prohibits the con- tract or not, there will be a fight made upon the Birmingham Railway Light and Power company signing something that the smaller stockholders disapprove.
 Claim Price Too High
 It is the opinion of well informed ex- perts that the Birmingham Railway, Light and Power company can manufacture electric energy here at the local plants at smaller cost than it can be procured by the contract from the Alabama Power company. It is claimed that if the Ala
 bama Power company sells to the local concern it will be at too high price and will nor result in any good to the ulti- mate consumers of this community. In addition to this, it is said that if the Bir- mineham Railway, Light and Power com
 pany buys the current there will be market denreciation in the stock value of over 100000, and that there will be constantly heavier carrying charge by reason of the contract than ever before on the shoulders of the Birmingham Rail way, Light and Power company. There is said to be no doubt of the fact that if the Birmingham Railway, Light and Power colnrany Is to be saddled with this contract the local company will be IpTceu Ib tdffl InDIt flontN Ofl Us StOtk than ever before in order to take care of the heavier fixed charge and that such duty will ee almost ruinous to the local concern.
 When the question of a contract with the Alabama Power company came up, Ford, Bacon and Davis consulting engi- neers of national reputation. figured on the deal and refused to recommend the contract as being a fair proposition for the Birmingh ham Railway, Light and Power company. It was indicated to Ford, Bacon and Davis that unless that firm could come into the general view point of the controlling interests, their services would be no longer required. The result was that Ford. Bacon and Davis declined further to act as consult ing engineers for the Birmingham Rail- way, Light and Power company or the American Cities. That was a significant step.
 Change of Contract
 The split called for the sale of the American Cities by Betrom, Griscom & Meeks, brokers of New York. That con cern owned the control of the Amer ican Cities and also rhe United Gas. They transferred the stock from the left pocket to the right, which was the United Gas. In the meantime the Alabama Pow CT company bought s2.0000 600 worth of the American Cities stock from Betrom, Gris- com & Meeks thus acquiring an infuen- tial interest with the hope that in this way a contract could be furthered with the Birmingham Railway, Light and Pow CT company. It is stated that an option Is held on other stocxs of the Ameri- can Cities by the power company. This influence, however, has not proven the factor imagined. J. K. Newman of New Orleans who is well informed about pub lie utilities, owns some of the American Cities, although he recently sold out a controlling interest. He Is protesting against the contract and in that step is being backed by local owners of about 5000 shares of the stock or the Birming- ham Railway. Light and Power company, who have no intention of seeing the local company made the goat In the pro- posed contract. It is stated that Mr. Newman, as representative of the local interest will ask the New York inter- ests in control to pass the contract up or there will be asked an injunction against the contract
 The Alabama Power company is exceed ingly anxious that the contract be signed for the Birmingham Railway. Light and Power company will be it's largest GUS toner. Tn the meantime MT Newman acting for the local company and for the American Cities will represent that to sign the contract wd entail heavy responsibility on the local company will cause a marked depreciation in the value of the stock and will act in other ways to decrease the value of the securities held by outside interests. Failing to se- cure redress from the New York interests it is believed that Newman and asso- ciates will take the case to the courts. If he does decide not to take such step there are said to be local stockholders who will take the case Into the courts as they believe the contract Is extreme ly injurious to the local company. Might Mean Change in Ownership
 The objections that have been raised to the contract in It's present shape may result in the purchase of the Birmingham Railway. Light and Power company by the Alabama Power company That com pany has already bought several electric car lines and electric companies in the state. located in cities where the Alabama Power company proposed to sell power.
 The whole proposition has many angles and it is difficult to forecast what will result. However. Sperling Co.,. of Lon don. the Alabama Power company, the American Cities. Betrom. Griscom & Meek and others. including local interests. have . say 80 in the matter, which may event. ,an l1v ha vrounA ny, ar tt.a onrr<s